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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 HCD-15 Santa Cruz might be the compact pickup we've been waiting for

The recent pickup truck renaissance and the dominance of the crossover has not been a great thing for car-heavy brands like Hyundai. That doesn't mean the Korean manufacturer is sitting on its hands, though, as it's taken the 2015 Detroit Auto Show to introduce the Hyundai HCD-15 Concept, also known as the Santa Cruz. The handsome trucklet heralds an eventual production model, and while the overall styling is likely to be softened by the time a sellable model arrives, there are a number of features present on this design-only concept that give us hints about the future Santa Cruz. Rear-hinged half-doors grant access to the back seats, while the cabin itself can seat five people without much shoehorning. The cargo area, while quite compact at first glance, can easily be expanded to space Hyundai describes as "similar to a mid-size pickup." Aesthetically, we're fans of the Santa Cruz's styling, which is more brutish than "fluidic sculpture 2.," without appearing brash. The hexagonal grille, upright front fascia, and fast C-pillar are all very nice touches, although the rear tailgate does appear somewhat awkward. The Santa Cruz's theoretical powertrain (it never moved while on stage, and it lacked a real interior) features at its heart a 2.-liter turbodiesel four-cylinder. With 190 horsepower, 300 pound-feet of torque and HTRAC all-wheel drive, we can only hope that Hyundai's powertrain claims see the light of day. Take a look at our full gallery of live images from the floor of the 2015 North American International Auto Show, and then head below for Hyundai's official statement on its latest concept truck. Hyundai's Fresh Take on the Sport Truck Concept Appeals to Trending "Urban Adventurer" Millennial Lifestyles Appeal of a Modern CUV with the Incremental Utility of an Expanding Truck Bed DETROIT, Jan. 12, 2015 – Today, Hyundai revealed its innovative Santa Cruz Crossover Truck Concept at the North American International Auto Show in Detroit. This fresh concept reflects a completely new interpretation of truck utility for a new generation of buyers, especially Millennials, who represent the second-largest population of car buyers. "The Santa Cruz crossover truck concept meets the unspoken needs of a growing Millennial lifestyle we call 'Urban Adventurers'," said Mark Dipko, director, corporate planning, Hyundai Motor America.

Hyundai, BMW in plant talks with Mexican officials

BMW and Hyundai may be joining the rush for the border that has already seen Nissan, Honda and Mazda begin factory construction in Mexico, while Ford and General Motors have both made significant investments in their Mexican facilities. BMW's interest in Mexico has been apparent for some time, and while we'd heard grumblings about Hyundai's move into Latin America some time ago, the last we heard about it was in 2009.
This new move, reported by Bloomberg, doesn't get specific on which models will be produced south of the Rio Grande, and as neither automakers' spokespeople responded to the business site's request for statements, all we really have to go on are the statements of Mexico's Economy Minister, Ildefonso Guajardo: "I cannot talk for them, but I think that starting 2014 we'll have new announcements. At least for one." Which manufacturer that will be remains anyone's guess, although judging by all the recent scuttlebutt that's been going around, the smart money seems to be on BMW. We'll stay with this one.