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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.

2017 Genesis G90 signals Equus' evolution

As predicted, Hyundai's executive-level Genesis EQ900 has crossed the Pacific to make its big debut at the 2016 Detroit Auto Show. Known in the North American market as the Genesis G90, the first-ever vehicle for the new Genesis brand will occupy the same position as the old Hyundai Equus at the top of the heap. That means lots of interior space, most of which is finished in luxurious materials and stuffed full of technology. From the lone interior image Hyundai sent out, the cabin is clearly an evolution of the Equus' aesthetic. There's a large swath of real wood on the dash, which is topped by Nappa leather. The expansive center display sits atop a high, curving transmission tunnel that houses the traditional knob-and-dial controller for the infotainment, as well as the shift lever and HVAC buttons. Hyundai stretched the G90's wheelbase by 4.5 inches over the old Equus, but in the process, it removed an inch of backseat legroom. Now there's only 37.8 inches in the second row, which doesn't compare favorably to the 42.9 inches in the back of the Audi A8L or the 43.1 inches offered in the Mercedes-Benz S-Class. Unlike the EQ900 that was shown early last month, the US-market G90 will only offer a pair of engines. On the one end, we have a 3.3-liter, twin-turbocharged V6, capable of 365 horsepower and 376 pound-feet of torque. The 5.0-liter V8 from the Equus will be offered too, and it still churns out 420 hp and 383 lb-ft of torque. But with peak twist from the V6 model available between 1,300 and 4,500 rpm and less than 60 horsepower difference between the two engines, it sounds like the smaller engine will be the one to have, especially if it proves significantly lighter (Hyundai hasn't published the G90's weight yet). Both engines are paired to eight-speed automatic transmissions and can be paired with Hyundai's H-TRAC all-wheel-drive system. Look for more on the new G90 from its Detroit debut. And in the meantime, head over to our December 9 report on the new flagship model for more on Peter Schreyer's design and the safety equipment.

Porsche, Jaguar continue dominance in 2015 JD Power APEAL study

The top of JD Power's 2015 APEAL Study has not changed much in the last year. Porsche remains No. 1 with Jaguar nipping at its heels, although both premium brands saw their overall score fall compared to 2014. For those that need a refresher, the APEAL Study looks at how "gratifying" a vehicle is to own and drive, rating cars and brands on a 1,000-point scale. The industry average for 2015 has increased from 794 to 798, while the total number of automakers that finished above the curve increased from 16 to 20. While Porsche and Jaguar finished at the top, their scores dropped eight and seven points, respectively, to 874 and 855. The top "non-premium" brand was Mini, which scored an impressive 825, up from 795. If the BMW-owned British marque is still a bit too premium for your tastes, last year's non-premium winner, Hyundai, did climb five points and is this year's runner up. At the opposite end of the scale, Smart sits at the very bottom of the rankings, with a score of 683 (it didn't appear on the 2014 rankings). Fiat also dropped, from fourth worst in 2014 to second worst in 2015, despite the 500 being named most appealing city car. Subaru made an impressive climb, from third worst to seventh, falling just 10 points shy of the industry average and two points south of the non-premium average. In the individual vehicle segments, eight brands earned multiple awards, with Ford, Chevrolet, and Porsche earning three apiece. Surprise segment victories included the new Ford Expedition, which beat out Chevy's popular Suburban. The Infiniti QX80 bested the likes of the Cadillac Escalade and Range Rover for best large luxury SUV, and the Dodge Challenger beat its muscle car rivals from Ford and Chevy. Most of the victories, though, were quite predictable. The Mazda6 and CX-5 took wins for the midsize sedan and compact SUV categories respectively, while the Volkswagen Golf captured the compact car win. The Ford F-150 won the large pickup category, while the Porsche Cayman was named most appealing compact premium sporty car. Check out the official release on the 2015 APEAL Study, available below, from JD Power. 2015 U.S. APEAL Study Results The latest safety-related technologies are among the drivers of customer satisfaction with new vehicles, according to the J.D. Power 2015 U.S.