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Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.

Kia Sportspace Concept is a big, red wagon that previews the future

The Kia Sportspace Concept might preview some design elements for the next-gen Optima, but for now the Korean brand is keeping the focus on this somewhat sporty looking wagon on display at the Geneva Motor Show. Its shape is designed specifically to appeal to European tastes, and the styling comes from the company's design studio Frankfurt, Germany. Despite the European design ethos, there's no mistaking the Sportspace as anything but a Kia. Up front, it features a sharper version of the brand's familiar tiger-nose grille that runs horizontally to link the LED headlights. However, the major visual focus for the concept is the long roof and angled rear hatch. The designers even pitch the D-pillar forward for a slightly more sporty style. The interior almost appears to come from a completely different model. The combination of black upholstery with carbon fiber trim and large pieces of anodized aluminum makes it look like a very dark place for a drive. Kia is apparently trying to appeal to the Sportspace's Swiss audience, though. The company touts that there's enough room to store a set of skis by fitting them between the rear seats. Power for the Sportspace comes from a 2.0-liter turbocharged four-cylinder with 247 horsepower that spins the front wheels, but the automaker doesn't specify anything about the transmission that it all routes through. Looking at the current Optima, it isn't hard to see the future design evolving this way. Get a preview from this big, red wagon on the show floor of the Geneva show in our gallery, above. DESIGN OVERVIEW: THE KIA SPORTSPACE CONCEPT The working week is over. The late afternoon sun is glinting on the ice crystals in the road-side snowbanks and turning the snow-capped peaks ahead pink. The road snakes ahead towards a weekend of fun and action. The journey demands a swift, efficient and refined machine to allow the maximum pleasure to be extracted from the time available. This is exactly the role for which the Kia SPORTSPACE was conceived. Its muscular proportions are ready to deliver a safe, secure but speedy passage to the slopes. Its cosseting and refined interior provides convivial yet individual space for its four passengers. Its sleek and elegant lines – both inside and out – are functional but stylish, allowing its travelling partners both comfort and convenience within a bodyshape that stands out from the crowd. This is a concept that has extracting the maximum from life at its heart.

NHTSA looking into non-Takata airbag shrapnel case

The global airbag inflator recall from Takata has been one of the biggest topics in auto safety for months. Now, the National Highway Traffic Safety Administration is opening a preliminary evaluation into the components from Arc Automotive to investigate whether two reported ruptures and two injuries signal a wider problem. So far, only the 2002 Chrysler Town & Country and 2004 Kia Optima are believed to be affected. If a safety campaign is deemed necessary, it could cover an estimated 420,000 of the minivans and 70,000 of the Korean sedans. NHTSA first noticed these ruptures in December 2014. The agency received a complaint of a 2009 case in Ohio about the bursting of the driver's side inflator in a 2002 Town & Country. According to the report, the incident broke the woman's jaw and sent shrapnel into her chest. The government investigated the case, and this was found to be the only known occurrence in these vehicles. The analysis indicated the part's gases were possibly blocked somehow and caused the component to explode. FCA US spokesperson Eric Mayne told Autoblog that the company is "cooperating fully" with NHTSA. "Also, we no longer use that inflator," he said. A second incident came to NHTSA's attention in June 2015 with the driver's side rupture in a 2004 Optima in New Mexico. The agency lists fewer details about the case, and a root cause isn't known. This is also the only currently known example in a Kia vehicle. According to a statement from Kia to Autoblog, "We are taking this matter very seriously and support NHTSA's action and will continue working cooperatively with the agency and suppliers throughout the process." Arc's components are sealed within a steel housing that's meant to protect them from "external atmospheric conditions," according to NHTSA. Multiple suppliers also use them. In the Chrysler, the airbag module came from Key Safety Systems and from Delphi in the Kia. In a statement to Autoblog the company said, "We have received NHTSA's notification and are cooperating fully with its Preliminary Evaluation." At this time, NHTSA admits that it doesn't know for certain whether these two cases are linked. The agency is conducting this preliminary evaluation to learn more.