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Hyundai And Kia To Pay US $100M For Overstating MPG

Korean automakers Hyundai and Kia will pay the U.S. government a $100 million penalty to end a two-year investigation into overstated gas mileage claims on about one-third of their models. The government says the civil penalty is the largest for a Clean Air Act violation in U.S. history. The discrepancy was discovered after the EPA got complaints about lower-than-advertised mileage on Hyundai's Elantra compact. Audits discovered overstated mileage on the Elantra and other models from 2011 into 2013. Hyundai says it made honest mistakes in interpreting complex EPA mileage test requirements. Neither company admitted liability and both maintain they complied with the law. Generally mileage was overstated by one or two miles per gallon on 13 vehicles. But one vehicle's highway mileage was 6 mpg higher than the EPA tested. Auto News Hyundai Kia mpg

Hyundai Sonata sales drop so Santa Fe production will increase

Hyundai will begin production of the five-seat Santa Fe Sport at its Alabama factory this summer to take advantage of the growing popularity of crossovers in comparison to midsize sedans. The company won't release official production targets for the CUV at the plant, but an anonymous company insider told Reuters Hyundai would build around 30,000 of them at the site this year. The Kia factory in Georgia will continue to handle the majority of Santa Fe Sport production, but the Alabama assembly will help Hyundai keep up with demand. The three-row Santa Fe will still come from South Korea. The Alabama factory has a 400,000-unit annual capacity and already produces the Elantra and Sonata. Sonata sales slipped in 2015 to 213,303 deliveries from 216,936 in 2014. Meanwhile, the volume of both body styles of Santa Fe jumped to 118,134 examples in 2015 from 107,906 the previous year. According to Reuters, Hyundai could have sold more of the CUVs last year, but a limited production capacity restricted the sales. Rumors from 2015 suggested that Hyundai might have had an eye on the plant for additional crossover production in case of falling sales for the sedans built there. The Alabama factory last built the Santa Fe in August 2010. "We're thrilled to bring back another pillar of the Hyundai lineup to our production mix here at HMMA," Chris Susock, vice president of production at the plant, said in the announcement. SANTA FE SPORT PRODUCTION WILL BEGIN AT HYUNDAI MOTOR MANUFACTURING ALABAMA IN SUMMER 2016 ID: 44810 • Additional production will support growing demand in the sport utility segment • Alabama plant is the home of the Sonata and Elantra sedans • Plant is capable of assembling 400,000 units per year MONTGOMERY, Ala., January 7, 2016 –Hyundai Motor Company has announced the addition of the Santa Fe Sport to the production schedule at Hyundai Motor Manufacturing Alabama (HMMA) starting in the summer of 2016. This change will supplement existing U.S. production of the sport utility vehicle to meet the growing demand in this popular vehicle segment. "We're very happy Hyundai has been able to make this change, which will result in more great Santa Fe crossovers available to our dealers and customers," said Dave Zuchowski, president and 'CEO of Hyundai Motor America. "The new production will help us meet the growing demand for one of our most popular products," said Zuchowski.

Genesis gets serious about selling cars in China with new CEO

Hyundai's Genesis brand announced Tuesday that former Mercedes-Benz vice president Markus Henne was named CEO of Genesis Motors China. Henne will be in charge of the company's push to introduce the brand to the world's largest automotive market.  Henne will report to the brand's new global boss, William Lee, who was appointed to run the luxury subsidiary in October. One of Lee's key goals is to expand the brand's footprint in Europe and introduce it to China. Henne previously served as VP of Sales & Marketing for Mercedes-Benz in Taiwan, and prior to that oversaw the AMG division in China.  Hyundai does not yet have an ETA for formally introducing the Genesis brand to the Chinese market. Feasibility studies are still pending.  Unfortunately, while China's auto market is massive, with more than 20 million units sold to date so far in 2019, it's also one of the most tumultuous. This will be yet another major obstacle to the success of Hyundai's premium brand, which has struggled to gain traction in the United States thanks to corporate restructuring and an anachronistic product mix leaning heavily on sedans.  Genesis is working hard to correct the issues with its lineup. A lack of crossover/SUV offerings would likely be the headline for any other struggling brand, but the company's woes extend far beyond the showroom appeal of its current offerings.  In 2019, Genesis completed a restructuring of its U.S. operations. America is the brand's core market, and for much of 2018, it was unable to do business in most states thanks to Hyundai's decision to spin Genesis off into an independent brand with its own dealer franchises. Throughout the year, sales volumes tumbled as Genesis simply did not have retail outlets through which to move product.