2014 Hyundai Azera Limited on 2040-cars

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Hyundai in trouble for overstating fuel economy numbers at home, too

Hyundai is, understandably, "very confused by the fine and the different results."
The South Korean government is investigating Hyundai and Ssangyong, alleging that the two manufacturers overstated the fuel economy figures on some of their crossovers. But while the initial investigation is being carried out by the Ministry of Land, Infrastructure and Transport, a separate branch of government, the Ministry of Trade, Industry and Energy is supporting the manufacturers' estimates. See Americans, our government isn't the only dysfunctional one.

Hyundai Sonata's slow sales start to trigger more daring redesign

On paper, the latest Hyundai Sonata has been a winner. The sedan sold 216,936 units in 2014, around 13,000 more than the previous year, and the new model posted healthy year-over-year gains in both December and November. However, according to a report from Wards Auto, the Korean brand isn't happy with how the vehicle is doing and is planning a redesign, to be timed with the future refresh. Unveiled at the 2014 New York Auto Show, the latest Sonata has a more refined, almost luxurious air about it, and the sedan ditches the swooping styling from the previous generation. It also comes at a slightly lower base price. But the more mature design is also the problem. Hyundai Motor America CEO Dave Zuchowski told Wards during the 2015 Detroit Auto Show that the new model was "not as distinctive" as its predecessor. Previously, "people would seek us out because we look different. And we don't get that now," he said. While no details on the redesign were divulged, Zuchowski said the company was already at work on the shape. He suggested the changes would debut for the Sonata's refresh, likely in the 2017 or 2018 model years. Autoblog reached out to Hyundai about the possible design change and spokesperson Derek Joyce told us, "Dave was simply referring to our normal mid-cycle refresh where it's typical to make styling tweaks." According to Wards, the latest Sonata isn't conquesting as many buyers from other brands as Hyundai would like. The company reportedly raised incentives to get them to move. So while sales were up, the automaker was disappointed. AutoTrader senior analyst Michelle Krebs confirmed to Autoblog that incentives were high for the Sonata, but that had nothing to do with its design. "The midsize car segment has fallen out of favor with buyers who want utilities so they are carrying very heavy incentives. We expect that trend to continue and then some in 2015," she said. A previous report also claimed that the 2015 Sonata wasn't living up to sales expectations in part due to its more traditional styling. But the company shot down those claims because the sedan was still rolling out the entire range to dealers at the time. Even now, Hyundai is still adding the Sonata Hybrid and Plug-In to the lineup in the coming year.

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.