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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

2019 Kia K900 First Drive Review | The Stinger GT grows up

The Kia K900 has been an afterthought in the luxury market almost since it was launched about 4 years ago. Or maybe a never-thought. Through September of this year, Kia sold just 260 examples, which was about 90 fewer than the same time last year. And with sales like that, most of us figured Kia would just let the model quietly disappear into the ether, especially with the launch of the new Genesis luxury brand, and Kia's new halo, the Stinger. Considering the car's yacht-like demeanor and forgettable looks, we wouldn't have missed it. Yet Kia is determined to keep the K900 alive in America, and has introduced a completely redesigned model. Perhaps even more surprising than the fact that the model is back, is that it's actually quite good. Think of it as a bigger, more plush Kia Stinger. That may be hard to believe by just looking at it. While it's certainly better proportioned than its predecessor, with a body that highlights its rear-drive bones, it's boring. It hides its roots well, not getting the onlooker excited or leaving a major impression. There's hardly a sharp crease or bold character line to be seen – a stark contrast to the fierce, outre Stinger. It doesn't even look much like other Kias, which all share a family resemblance in their grilles and athletic stance. The K900 is a lot larger than the Stinger, too. The wheelbase is about 8 inches longer, and overall length is up by nearly a foot. Width and height are greater by roughly 2 and 3 inches respectively. This all puts the K900 in the size territory of full-size luxury flagships, but Kia says it's targeting buyers of midsize luxury sedans such as the Audi A6 and BMW 5 Series with a price of around $60,895 for the base model, and $64,895 for the VIP model. These are close estimates. It's a "more for your money" sort of argument, but there are more direct competitors to the K900 that muddy the water, like the Volvo S90, Lincoln Continental, and Cadillac CT6. On paper, all three seem to be compelling options to the K900 with lower base prices, similar size, and more distinctive styling. But the K900 has a major power advantage with its standard 365-horsepower twin-turbo V6. The S90's standard engine makes just 250 horsepower, and the optional non-hybrid engine just makes 316 horses. To beat the Kia, you have to get the hybrid S90 with 400 horsepower, and a base price of over $64,000.

Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.