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A verified hit, Kia Soul EV will come to new markets

Today at the Chicago Auto Show, Kia introduced a new off-road Trailster plug-in concept, but the real-world news was all about how the Soul EV will be traveling to places it hasn't gone before. When Kia introduced the Soul EV in Chicago last year, it said that the car would some day be available in five states: California, Oregon, New York, New Jersey and Maryland. Today, company executives said the car will be coming to more markets – they just declined to mention where, exactly. The Soul EV is currently sold in just 17 dealerships in California, Orth Hedrick, vice president of product planning at Kia Motors America, told AutoblogGreen. "For the next stage, we were originally planning on hitting the east coast, but we are changing that around a little bit. You'll see more availability," he said. Hedrick said that the change was prompted by the simple fact that the Soul is attracting new customers. "We went back to the factory and told them it's doing very well and it's now expanded beyond an EV, it's something bigger," he said. "It's helping us get a dialogue with completely new, different customer that we normally wouldn't see in a Kia store. So we would like the opportunity to take it further." We asked if customer interest in the compliance car caught the company off guard. Hedrick said that wasn't quite the right way to look at the history of the Soul EV. "When we looked at it originally, we were trying to go beyond the compliance part," he said. "We understood, of course, that we had to do it, but we wanted to showcase something that was really strong for us, which is the Soul, and we thought it would help build out the Soul family and bring more people to see us and that's exactly what's happening. It was a little more than compliance but I think we were kind of shocked how well it was received. It's been a huge hit." "Huge" in this case means bigger than Kia's original production capacity estimates, he said, without getting into specifics. It was "significantly more than what we originally planned for," he said. The Soul EV is built in Korea and the car is sold there, the US and will be coming to Europe as well. "I don't think they're in a position to ramp up quickly," Hedrick said, "They're in the process of ramping up more and we'll have an announcement, we hope, by New York, about where we're going to go to." The New York Auto Show media days start April 1, 2015.

Hyundai And Kia Penalized $350 Million For Overstated MPG Claims

Nearly two years after Hyundai and Kia announced they exaggerated fuel economy numbers for several of their most popular models, the two Korean automakers have paid a heavy penalty for the transgressions. The Department of Justice and Environmental Protection Agency announced a settlement Monday that will cost the two car companies approximately $350 million. The financial sum includes a $100 million fine, the largest ever levied under the Clean Air Act, and about $200 million in forfeited greenhouse-gas emissions credits. At a time when car buyers rank fuel economy as a top concern when they head to dealerships and the federal government has mandated increased efficiency, Attorney General Eric Holder said the settlement should serve as a warning to automakers not to fudge their numbers. "This will send a strong message that cheating is not profitable," he said. The settlement ends a federal lawsuit filed against the automakers in U.S. District Court, but it's important to note that it doesn't end a class-action lawsuit filed on behalf of consumers. A preliminary settlement in that case, based in Los Angeles, was approved last month, but final approval isn't expected until July 2015. Officials with the EPA said the $100 million figure roughly equals the economic benefits the two companies received from exaggerating the mileage claims on the window stickers of new cars. Fuel-efficient boasts helped Hyundai and Kia establish a strong foothold in the U.S. marketplace. Advertisements for the Hyundai Elantra stated the vehicle achieved 40 miles per gallon in highway driving, and helped the car win the prestigious North American Car Of The Year honors at the Detroit Auto Show for its 2012 model. In July 2011, the advocacy group Consumer Watchdog began receiving complaints from consumers that the Elantra and other Hyundai models fell short of their stated mileage claims in real-world driving. The group wrote to the EPA and Hyundai, asking both to investigate. Government officials said Kia had overstated the mileage on its popular Kia Soul crossover by 6 miles per gallon, and more than a dozen overall models were affected. On Monday, EPA administrator Gina McCarthy said the violations were "egregious." Based on the exaggerations, the EPA calculated that Hyundai and Kia had underreported the greenhouse gas emissions of their fleets by about 4.75 metric tons over the estimated lifetime of the vehicles. That figure aided in the $200 million credit forfeiture.

EPA says it will more closely monitor fuel economy claims from automakers

The unintended acceleration brouhaha at Toyota led to the National Highway Transportation Safety Administration tightening the vise on recall procedures. Likewise, the fuel economy kerfuffle that blew up with Hyundai and Kia's admission of overstated fuel mileage claims could lead to the Environmental Protection Agency policing automaker assertions by performing more audits.
At least, that's what a senior engineer with the government agency said while in Michigan giving a talk, according to a report in Automotive News. What that actually means, however, is still in question. Just ten to 15 percent of new vehicles - something like 150 to 200 cars per year - are rested by the EPA to verify automaker numbers. The EPA's own tests include a "fudge factor" to adjust lab mileage for real-world mileage, and the agency still relies on automakers to submit data for tests that it doesn't have the facilities to perform. How much more auditing can the EPA really expect to do, or perhaps a more relevant question would be how much more accurate could the EPA's audits become?
The price of gasoline, the psychological importance of 40 miles per gallon to a frugal car buyer, an automaker wanting to further justify the price premium of a hybrid, all of these things contribute to fuel economy numbers that insist on creeping upward. Perhaps the senior engineer encapsulated the whole situation best when he said, "Everybody wants a label that tells you exactly what you're going to get, but obviously that's not possible. A good general rule of thumb is that real-world fuel economy is about 20 percent lower than the lab numbers." If the lesson isn't exactly 'buyer beware,' it's at least 'buyer be wary.'