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Hyundai admits 'error' in KDM Sonata fuel economy announcement

Stop us if you've heard this one before: Hyundai is going to have to reduce the officially announced miles-per-gallon number for its 2014 Sonata. While there's a lot of similarity between this new situation and events that transpired in 2012, there are some important differences. For one, the new mileage mistake, which Hyundai says was once again caused by an error at its test centers, is only applicable to cars in the Korean Domestic Market. Secondly, it's not so much mpg as kilometers per liter. "We are very sorry for causing confusion to reporters" - Hyundai According to Reuters, the numbers for the Korean Sonata were originally announced as 12.6 kilometers per liter (29.63 mpg), a six-percent increase over the previous model. The automaker has just announced that government verification showed an actual result of 12.1 kpl (28.46 mpg), which is only a two-percent increase. Since these numbers were done using the South Korean economy test, they are not equivalent to the US EPA numbers, the latter of which say the 2014 Sonata gets 36/40/38 miles per gallon. The correction came before the new Sonata went on sale in South Korea. In an official statement, Hyundai said, "We are very sorry for causing confusion to reporters." Hyundai Motor America's Jim Trainor, product public relations senior group manager, assured AutoblogGreen that the Korean error will have "no effect" on US ratings. In 2012, Hyundai and Kia faced a media and consumer firestorm after being caught up in exaggerated mileage claims for vehicles like its 2013 Accent, Veloster and Elantra. The sister companies agreed to compensate buyers to the tune of $395 million for what they said were "honest mistakes" and "human error" during in-house fuel economy tests. There is no word yet on whether similar customer satisfaction actions will follow this domestic market snafu.

Autoblog Podcast #362

Episode #362 of the Autoblog podcast is here, and this week, Dan Roth and Chris Paukert cover the year-end news, including the surprise resignation of Hyundai Motor North America CEO John Krafcik, strong early sales for the 2014 Jeep Cherokee, and 2015 Ford F-150 rumors ahead of its expected Detroit Auto Show debut. Dan also had a chance to look back at 2013 and ahead to 2014 with Autoline's John McElroy. We start with what's in the garage and finish up with some of your questions, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Check out the new rundown below with times for topics, and you can follow along after the jump with our Q&A. Thanks for listening!
Autoblog Podcast #362:
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Hyundai and Kia settle lawsuit over hybrid technology

Hyundai and Kia will end Paice's patent infringement lawsuit by signing a licensing agreement to use the firm's hybrid technology for their vehicles, according to Bloomberg. A statement by Paice says that this new contract ends any legal disputes between the companies, but doesn't disclose the cost of the settlement. A Hyundai spokesperson declined to comment about the case's resolution to Autoblog. Paice and the Abell Foundation, an investor, brought the case against Hyundai and Kia in 2012 over the tech in the Sonata and Optima Hybrids, and the court sided in the patent holder's favor in October 2015. The jury ordered the automakers to pay at least $28.9 million, but the judge could have tripled that amount because the infringement was allegedly intentional. Hyundai pledged to appeal the ruling. Paice's patents come from the work of Alex Severinsky and cover ways to make engines and electric motors work together. The company has a history of defending its tech, including settlements with Toyota and Ford. It also filed another case against the Blue Oval in 2014 over the hybrid or plug-in systems in the C-Max, Fusion, and Lincoln MKZ. Hyundai and Kia sign licensing agreement with Paice Paice, a pioneer in hybrid electric vehicle technology, has reached an agreement to license all of its hybrid vehicle technology to Hyundai Motor Co. and Kia Motors Corp. Paice has now licensed all or part of its hybrid vehicle technology portfolio to Toyota, Hyundai/Kia, and Ford – three of the world's six largest automakers. These three companies currently account for 90% of all hybrid vehicle sales in the United States. "We are gratified to reach a licensing agreement with Hyundai and Kia, who are among the undisputed leaders in the hybrid industry. This agreement further validates the importance of our technology, and we hope to reach additional agreements with other major automakers," said Frances Keenan, chairman of the Paice Board of Directors. The confidential licensing agreement with Hyundai and Kia brings an end to all litigation between the companies. Paice and the Abell Foundation, a Baltimore-based non-profit organization that invested in Paice, filed a patent infringement lawsuit against Hyundai and Kia in U.S. District Court in 2012. After an eight-day jury trial earlier this year, the jury sided with Paice and Abell, awarding $28,915,600. Hyundai and Kia currently rank third in U.S. hybrid car sales.