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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.

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Kia previews off-road Sorento for SEMA

Kia hasn't told us much about what it has in store for us at SEMA this year. But it is giving us a glimpse of what's to come in this latest teaser video. The short clip provides a sneak peek at the PacWet Adventure Sorento, an evidently rough-and-tumble take on the Korean automaker's midsize sport utility vehicle. Just what's going into it remains to be seen, but we can already see part of the package. There's a new tubular and sheetmetal front bumper, a snorkel intake, roof rack, winch, auxiliary lighting, knobby tires, and a Kermit-green paint job. We'd expect some sort of jacked-up suspension, too, considering this custom is for the aftermarket-obsessed crowd at SEMA. Given the brief statements Kia has issued to date, it would appear that the Sortento is just one of a variety of vehicles the company is preparing for the Vegas tuner expo. Each is poised to represent a different American region, and we're looking forward to seeing how the others take shape, as well. Related Video: 10/23/15 2015 SEMA PACWEST ADVENTURE SORENTO TEASER As Kia heads to SEMA 2015 to celebrate the American Road, here's a taste of the PacWest Adventure Sorento, a tough, off-road utility vehicle equipped with custom suspension, snorkel intake system and a paint scheme inspired by the lush forests of the region. ### 10/20/15 Kia Teases SEMA 2015 Kia is headed to this year's SEMA show to celebrate America's love for the open road and the diverse car cultures spanning the many regions of this country. Enjoy this high-speed coast-to-coast tour to whet your appetite for what we will unveil November 3rd in Las Vegas. More to come. #KiaWanderlust