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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.

2013 Hyundai Santa Fe probed by NHTSA over axle failure

According to Reuters, the National Highway Traffic Safety Administration has launched a preliminary evaluation of the 2013 Hyundai Santa Fe after receiving two complaints of broken front axles on vehicles with fewer than 5,000 miles on their odometers. Naturally, a broken axle could result in the loss of control of the vehicle, especially if it occurs at high speed. It's not immediately clear if the investigation centers on the five-seat Sport, the seven-seat model or both.
No actual recall has yet been issued, and "no safety defect has been identified," according to a statement Hyundai released to Reuters, which added, "Hyundai will, of course, take any actions necessary to ensure the safety of our customers if the information gathered during the investigation indicates that action is appropriate."
We suppose you could sum up the report this way: 2013 Santa Fe owners, stay tuned.

2015 Hyundai Genesis 5.0 First Drive [w/video]

The original Hyundai Genesis was something of a mixed bag. A great first effort, no doubt, but as with any, well, genesis, there were weak points – the infotainment system and some interior materials, for example. In creating its second-generation model, Hyundai paid plenty of attention to these shortcomings while wisely deciding to retain the most notable of the original model's strengths: its 5.0-liter V8. The 420-horsepower rocket from the former Genesis R-Spec has once again been named the top-flight engine for this updated, 2015 model. Hyundai has comprehensively overhauled its first rear-wheel drive sedan, and while it might use an older – but impressive – engine, the 5.0-liter V8 isn't nearly as big of a story this time around. That's because it's now wrapped inside a far better package, as we found during a week behind the wheel. Hyundai's stylists have matured the Genny, opting for significantly more standout sheet metal in this new iteration. The old car featured a more traditional three-box shape, while the second-gen car is more open about its rear-drive layout, featuring a long hood and a short rear deck that feeds right into an aggressively raked rear window. The upright front fascia, with its broad, crisply styled grille and almond-shaped headlamps is clean and fashionable while still coming off as sort of conservative. Around back, Hyundai maintained some semblance of its old fluidic design, with sweeping, wraparound taillamps, while the V8 model's bumper is home to sporty, staggered quad exhausts. That said, the updates to the exterior are overshadowed by the comprehensive overhaul found in the cabin. The Genesis finally has an interior befitting of its price tag, thanks in large part to the swath of natural-looking matte wood trim on the dash, complemented by aluminum accents. The upper and lower dashes are finished in plastic, but its quality is no better or worse than what you'd find in a German competitor. However, while the cabin certainly feels much better than the last-gen model, there are still a few shortcomings. The "ultra premium" leather is standard on the 5.0's wide, supportive seats, and while it feels very, very nice, we did notice that even with fewer than 8,000 miles on the clock, a regular parade of denim-clad auto journalists has already started to stain the driver's side bottom cushion – something we noted during our year-long test of Hyundai's larger Equus.