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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.

Hyundai recalls 883k Sonatas over detaching shift cable

There are plenty of things that can go wrong in a car, some more vital than others. Automakers try their best to make sure they don't, but things slip through, like the shift cables on the Hyundai Sonata.
Hyundai and the National Highway Traffic Safety Administration have found that, on 883,000 units of the MY2011-2014 Sonata manufactured between December 11, 2009, and May 29, 2014, the shift cable in the transmission is prone to detach from the shift lever. As a result, the gear indicated and the gear engaged might not match, which could set the vehicle in motion unexpectedly. Worse than that, the Park position might not engage altogether, and without the hand brake pulled, that could lead the car to roll away without warning.
In an entirely separate recall affecting a much smaller number of 2015 Sonatas, Hyundai has found that the front brake calipers could fracture. This second recall affects a relatively small 5,650 units manufactured between April 25 and June 16, 2014.

Volvo leads and Mini fails in JD Power's Tech Experience Index

New cars are basically rolling computers. Everything from the engine to the infotainment runs on a series of ones and zeros, and a lot of that technology requires input from the driver. So it's no surprise that JD Power has a study designed specifically to discern which bits of tech drivers love and which bits they loathe. "New technology continues to be a primary factor in the vehicle purchase decision," says JD Power's Kristin Kolodge, executive director of driver interaction & human machine interface research. "However, it’s critical for automakers to offer features that owners find intuitive and reliable. The user experience plays a major role in whether an owner will use the technology on a regular basis or abandon it and feel like they wasted their money." The J.D. Power 2020 U.S. Tech Experience Index (TXI) Study found that Volvo owners are happiest with the technology packed inside their vehicles, followed by BMW and Cadillac, all brands that JD Power classifies as premium. The highest-rated mainstream brand is Hyundai, followed by Subaru and Kia. As was the case with the organization's Initial Quality and APEAL studies, Tesla's numbers aren't officially included because they are the only automaker that has not granted JD Power approval to contact its owners in states that require it. Tesla's projected score of 593 would have put it in second place, right behind Volvo's score of 617. The lowest-ranked brand in the TXI Study is Mini, with Porsche right behind. Diving a little bit deeper, JD Power's findings suggest that the technologies new car buyers care most about are related to helping them see their surroundings better. Camera systems, including rear-view mirror cameras and ground-view cameras, scored highest in five of the six satisfaction attributes measured in the study. The technology that owners could really do without? Gesture controls. Owners who answered JD Power's survey say they don't use gesture controls much at all after initially trying them, and they don't really care if their next vehicle has them. We have to wonder if those responses might be what kept BMW out of the top spot. The TXI Study also found that owners are split on automated driving helpers, like lane-keeping assist and automatic emergency braking. JD Power suggests that owners may need more training on those systems before they learn to trust them. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences.