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Weekly Recap: Kia leads Korea's quality surge

The rapid rise of Korea's auto brands in the US market has been apparent on the sales charts for several years, and now it's showing up in an area that's just as crucial: quality. Kia and Hyundai earned the highest rankings among mainstream brands in the J. D. Power Initial Quality Study released on Wednesday. The study tracks problems owners report during the first 90 days they own their car. Kia reported 86 problems per 100 vehicles, or fewer than one problem per car sold, to take second in the rankings behind luxury sportscar-maker Porsche (80). Kia's score improved by nearly 20 percent compared with the 2014 study. "The big industry story is Kia," Renee Stephens, vice president of U.S. automotive quality at J.D. Power, said in a video statement, noting Kia's infotainment systems were the key reason for its improved performance. Hyundai was fourth for the second straight year, though its score actually worsened by one, to 95. Even with Hyundai's slight dip, Korean quality increased 11 percent, according to the study, which far outpaced American and European companies' three-percent increases. Japanese brands improved one percent. Hyundai Motor Co. (parent company of the Hyundai and Kia brands) captured four individual vehicle awards, which tied for the most with General Motors, Nissan, and Volkswagen. "The Korean brands have really taken off," Stephens said. "There's movement in the industry, and the patterns are shifting." Another luxury brand, Jaguar (93 problems), slotted in between Hyundai and Kia in third place. Infiniti was fifth, followed by BMW. Chevrolet was the highest domestic brand, taking seventh place, followed by Lincoln, Lexus, and Toyota, which were all well above the industry average of 112 problems per 100 vehicles. OTHER NEWS & NOTES Kirk Kerkorian dead at 98 Kirk Kerkorian, a billionaire activist investor who wielded enormous influence on the Detroit Three car companies in the 1990s and 2000s, died Monday. He was 98 years old. Kerkorian made headlines in 1995 for trying to take over Chrysler – with the help of former chairman Lee Iacocca – before being fended off by Chrysler management. His takeover attempt ultimately pushed Chrysler to be sold to German giant Daimler. He tried to buy Chrysler again in 2007 when Daimler put Chrysler on the market, but Kerkorian fell short and the automaker was sold to private equity firm Cerberus.

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.

Who can really claim first mass-produced fuel cell vehicle delivery in US?

Last month, Hyundai said that the initial deliveries of the Tucson Fuel Cell vehicles in California meant that, "For the first time, retail consumers can now put a mass-produced, federally-certified hydrogen fuel cell vehicle in their driveways." But try telling that to Jon Spallino. In 2005, Honda leased a hydrogen fuel cell FCX, a small hatchback, to the Spallino family (as far as we know, he parked it in his driveway). The company did the same thing again in 2008 with the FCX Clarity, a sleek new design based on the FCX Concept, and others signed for the H2 ride as well, including celebrities. No matter how you slice it, Honda has been in the fuel cell delivery market for almost a decade now. Just look at this. Or this. Or this. Oh, and other automakers (General Motors in Project Driveway in 2006 and Mercdes-Benz with the F-Cell in 2010, for example) have delivered fuel cell vehicles in the US as part of short-term test programs. But let's get back to Hyundai's claim. There's little question that the first delivery of a "fuel cell vehicle for the US market" has already taken place (and they were federally certified, too), which means that the debate revolves around the definition of mass-produced and whether "mass production" is about a number or about the process? Let's investigate below. First, lets review Honda's bona fides. We can start with the official version of Honda's fuel cell history, which is missing the pertinent detail that Honda build the Clarity on a dedicated assembly line and established a small network of three dealerships to lease the FCX Clarity in 2008. All of the FCX Clarity vehicles in customer hands in the US were leased through these dealerships. Sure, Honda started with hand-built stacks in its hydrogen vehicles, but went to automated control of some parts and components with series production. "It is good to see others doing today what we've been doing since 2008" – Steve Ellis, Honda Or, as Honda's Steve Elllis put it to AutoblogGreen regarding Hyundai's fuel cell deliveries: "This was exactly as prescribed by the creation of the California Fuel Cell Partnership. It's the very essence of 'co-op-itition.' We at Honda, as do many others, continue to push forward on many technologies, both the battery and the fuel cell. And society is the beneficiary." Then he added, "It is good to see others doing today what we've been doing since 2008." Now, how does Hyundai compare?