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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

Hyundai refining dealer strategy for premium models

Automotive News reports Hyundai is set to give its sales strategy for premium vehicles a once-over. Moving forward, each of the automaker's five North American regions will have a premium product operations manager. Those managers will all report directly to a senior group manager based at the Hyundai headquarters in California. To begin with, the group will start by identifying what dealers are currently doing right to sell the automaker's luxury hardware. From there, the group will then help spread those practices to the 320 dealerships currently authorized to sell the Equus. All told, Hyundai has some 800 dealers in the US.
The move comes ahead of the launch of the second-generation Genesis and Equus. Both sedans are slated to hit showrooms by early next year. The Genesis debuted in 2008 with the Genesis Coupe following along in 2009, while the Equus first landed on US shores in 2011.

Hyundai Sonata PHEV will go 27 miles on electric power

The Hyundai Sonata Plug-in Hybrid will have an all-electric range of 27 miles. That will make it the second-highest among US plug-in hybrids, after the Chevrolet Volt. The Volt is technically an extended-range plug-in, according to Chevy, but we feel fine comparing the two here. Either way, the Hyundai beats out the 19-mile all-electric range of Ford's two plug-in hybrids and the paltry 11 miles of the Prius Plug In. The good news is that the Sonata's numbers are a bit better than previously expected. The plug-in hybrid was forecast to be able to go 24 miles on electricity alone. The Sonata PHEV also delivers 202 but, though, as well all know, range drops precipitously if you're shooting to use all of them horses at once. The seventh-generation Sonata body style is also sleeker and delivers better aerodynamics. No word on how much the PHEV will cost yet, but it will go on sale in the US this fall. And while the Sonata PHEV will technically available for Hyundai dealers to stock in all 50 states, if you live outside of California or the nine states that follow its zero-emissions vehicles rules, you will need to special order the vehicle. Based on the US Department of Energy's Fueleconomy.gov site, the Sonata PHEV's miles-per-gallon-equivalent rating of 99 beats out that of the Ford Fusion Energi and C-Max PHEVs but trails the Chevrolet Volt's. Again, the Sonata came in with better numbers than we previously thought, as it was expected to have a 93 MPGe rating. You can read our First Drive of the Sonata Plug-in Hybrid here. Related Video: Featured Gallery 2016 Hyundai Sonata Plug-In Hybrid: First Drive View 20 Photos News Source: US Department of Energy via Hybrid CarsImage Credit: Copyright 2015 Sebastian Blanco/AOL Green Hyundai Hybrid PHEV mpge ev range hyundai sonata plug-in hybrid sonata plug-in hybrid