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Did a US automaker blow the whistle on Hyundai, Kia fuel economy issue?

In all of the most hotly contested mainstream segments of the motoring universe, the difference of one mile per gallon averaged on a widow sticker can mean the difference between a sale and a walk-off - to say nothing of two or three mpg. So, when Hyundai and Kia were forced to reveal that many of their 40-mpg ratings were actually 38s and 37s, well, it made for big news.
It also, conceivably, made for a competitive disadvantage immediately, when the Korean automakers' products were being shopped versus the guys down the block. And it's that disadvantage that makes a recent story from Automotive News so juicy.
AN is reporting that Margo Oge, former head of the Environmental Protection Agency's Office of Transportation and Air Quality, got a tip in 2010 that Hyundai/Kia were "cheating" to get its impressive fuel economy numbers. The tip, said Oge (who retired from the EPA this past September), came from a senior vice president from a domestic automaker. The source was credible enough for Oge to launch an audit of the Hyundai figures, which ultimately lead to the debacle that we reported on a few months ago, and that the Korean company has been trying to bounce back from ever since.

Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Is this the new Hyundai Elantra?

Hyundai's future models have a tendency to leak out of the South Korean market before they are shown elsewhere, and that appears to be the case with the next-gen Elantra. According to Indian Autos Blog, the official unveiling isn't scheduled in South Korea until April, but at least one shot of the upcoming sedan is online a few weeks early. Based on this single photo of the front of the car, Hyundai's designers are vastly altering the Elantra's styling for its latest generation, moving it closer to the current Sonata. The grille receives the wide, trapezoidal shape from the latest members of the brand's lineup, and the headlights wear a more angular look, as well. This image also barely shows an arching crease running up the side through the door handles. According to Indian Autos Blog, the powertrain range for the future Elantra might include the new 1.6-liter turbocharged, direct-injected four-cylinder from the recently unveiled Tucson. In European trim, the engine makes 174 horsepower and is paired with either a seven-speed dual-clutch transmission or a six-speed manual. If you're wondering why it's worth caring about a Korean-market Hyundai, it's because the automaker often only lightly tweaks designs (if at all) before bringing them to the US. So, this is quite likely an accurate preview of the next-gen Elantra in North America, as well.