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South Korea firms up fuel economy regs following Hyundai/Kia debacle

According to a report from Reuters, South Korea's government has drafted strict new rules for automakers to follow when calculating fuel economy. The legislation comes after a major snafu by Hyundai and Kia that resulted in the automakers lowering the estimated fuel mileage of many popular models - some by several miles per gallon, including the Soul subcompact above - and compensating owners in the US and Canada for the reduction.
The new fuel economy rules were announced by the Ministry of Trade, Industry and Energy in South Korea and will see average mileage ratings drop by roughly three to five percent, according to the report. In addition, manufacturers found guilty of overstating mileage figures will be liable for fines of up to $900,000.
These sweeping new regulations will go into effect in the second half of 2013 and, while they won't have any effect on EPA estimates for Hyundai and Kia vehicles in the United States, they are expected to result in new ratings for the two automakers in their home market of South Korea, where they enjoy a whopping 70-percent market share.

Hyundai's battle plan: More crossovers, no more Azera

We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy. Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units. The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race. View 27 Photos The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model. The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models. As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more.

Hyundai ix35/Tucson replacement comes into view

Last week, we showed you some leaked images of the Hyundai Intrado Concept, a vehicle set for debut at next week's Geneva Motor Show. We suspect that the Intrado will act as the inspiration for the next Hyundai Tucson, known elsewhere in the world as the ix35. Now, we can bring you the first images of that car undergoing testing.
There is quite a lot of cladding on this prototype, although we can make out a set of slim headlights that are similar in shape to the Intrado. The two cars also share a similar shape in the greenhouse, although obviously the prototype wears an extra set of doors behind the B-pillar.
Don't be fooled by the heavy cladding on the rear hatch, either, as it's just there to disrupt the look of the profile. It's fairly easy to spot where the roofline starts its dive down.