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Hyundai-Kia fuel-economy errors trigger $300M in federal penalties [w/video]

This amount includes $100-million in civil penalties, the largest such fines in EPA history.
Hyundai and Kia are getting more than a slap on the wrist for overstating the fuel economy of an estimated 1.2-million vehicles in their 2011-2013 model ranges. The Environmental Protection Agency, the Department of Justice and the California Air Resources Board are hitting the automakers with collective penalties valued at around $300 million for Clean Air Act violations. This amount includes $100-million in civil penalties, the largest such fines in EPA history. Specifically, Hyundai is paying a $56.8 million penalty and relinquishing 2.7-million greenhouse gas emissions credits. Kia is paying $43.2 million in penalties and giving up 2.05-million credits.

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Hyundai reveals new Sonata Hybrid in Seoul

The wraps are off Hyundai's next-generation Sonata Hybrid after an unveiling in Seoul, South Korea, and the latest model brings an improved powertrain and slight styling tweaks. In the Korean domestic market, the Sonata Hybrid relies upon a 2.0-liter, four-cylinder gas engine producing 154 horsepower and 140 pound-feet of torque with a 51-hp electric motor providing the rest of the thrust. Hyundai isn't revealing net system output at the moment, and it isn't saying whether we will get this powertrain in the US yet. Company spokesperson Jim Trainor tells Autoblog that those details will likely be announced at the model's North American debut at Detroit Auto Show in January. Sales are expected to begin in the spring. In addition to the upgraded engine, there's an improved six-speed automatic that houses most of the hybrid components and uses a new clutch to reduce drag. The switch to an electric oil pump also removes some inefficiencies, and the battery pack underneath the trunk has been enlarged to 1.62 kilowatt hours, up from 1.43 kWh. Despite the capacity increase, Hyundai claims there's 10.5 percent more cargo room back there. The Sonata's design gets a slight rethink to improve fuel economy, too. Up front, the redone nose features a new mesh grille in a more rectilinear frame, and out back, there's a set of unique taillamps, a lip spoiler and a unique rear diffuser to go along with the full underbody cover that only the pavement sees. If anything, the new hybrid model looks more traditional to our eyes than the standard gas-powered Sonata, which comes as something of a surprise, especially as the previous-generation Sonata Hybrid was markedly more futuristic and divisive in its appearance. In any case, we expect the looks to remain largely the same for the US version, which will likely arrive wearing a 2016 model-year designation. All of the upgrades, boost fuel economy to 18.2 kilometers per liter on the Korean cycle, the equivalent of about 42.8 miles per gallon. Comparatively, the current Sonata Hybrid in Korea is rated at 16.8 km/l (39.5 mpg). Hyundai will also make a big expansion to its electrified slate next year. In addition to the standard Sonata Hybrid, a plug-in version will come later in 2015 – the automaker's first. More details will arrive about the model in Detroit.