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EPA says it will more closely monitor fuel economy claims from automakers

The unintended acceleration brouhaha at Toyota led to the National Highway Transportation Safety Administration tightening the vise on recall procedures. Likewise, the fuel economy kerfuffle that blew up with Hyundai and Kia's admission of overstated fuel mileage claims could lead to the Environmental Protection Agency policing automaker assertions by performing more audits.
At least, that's what a senior engineer with the government agency said while in Michigan giving a talk, according to a report in Automotive News. What that actually means, however, is still in question. Just ten to 15 percent of new vehicles - something like 150 to 200 cars per year - are rested by the EPA to verify automaker numbers. The EPA's own tests include a "fudge factor" to adjust lab mileage for real-world mileage, and the agency still relies on automakers to submit data for tests that it doesn't have the facilities to perform. How much more auditing can the EPA really expect to do, or perhaps a more relevant question would be how much more accurate could the EPA's audits become?
The price of gasoline, the psychological importance of 40 miles per gallon to a frugal car buyer, an automaker wanting to further justify the price premium of a hybrid, all of these things contribute to fuel economy numbers that insist on creeping upward. Perhaps the senior engineer encapsulated the whole situation best when he said, "Everybody wants a label that tells you exactly what you're going to get, but obviously that's not possible. A good general rule of thumb is that real-world fuel economy is about 20 percent lower than the lab numbers." If the lesson isn't exactly 'buyer beware,' it's at least 'buyer be wary.'

Hyundai and Kia announce $3.1-billion investment in US facilities

Update: A US spokesperson for Hyundai had no further information, but called the reports about the automaker's investments accurate. Hyundai and Kia announced this morning a plan to invest $3.1 billion into its US facilities over the next five years. According to Automotive News, the new investment is a 50-percent increase over what Korea's two largest automakers have brought to the US in the last five years. The automakers already have several large-scale manufacturing bases in the US, but the new investment could bring another plant into the fold. There is the possibility of producing a Genesis product in the US or building a new plant for a US-specific crossover. The announcement is the latest US investment plan as President-elect Donald Trump prepares to take office Friday. Trump has singled out automakers for not building cars in the United States, and Ford, General Motors, and Fiat Chrysler all announced plans to invest in the US since the beginning of January. Skeptics say these moves would have to be years in the making, though Trump has been quick to take credit for them. Not all of the new money will go toward building new plants. Hyundai and Kia could simply expand the already busy plants in Montgomery, AL, and West Point, GA. Beyond that. The automakers could further their research into electric and autonomous vehicles. Like many other automakers, the two Korean giants have backed down from planned expansions into Mexican manufacturing. Although many automakers currently build or were planning to build new vehicles in Mexico, threats of importation fees appear to be causing caused automakers to refocus some of their efforts toward US production. With all this new investment in the US, Kia and Hyundai said there will be no jobs moved to Mexico. Meanwhile, this morning GM announced plans to bring truck axle manufacturing back from Mexico. As with all of the recent announcements, Hyundai and Kia stated that Trump's upcoming presidency played no part in the decision to reinvest in the US. Related Video: News Source: Automotive News Plants/Manufacturing Genesis Hyundai Kia Mexico Trump jobs investment

South Korea island of Jeju becoming an EV-incentive heaven

When it comes to providing some island EV love, we can point to Hawaii, which has been pushing hard for greater electric-vehicle adoption through subsidies and a broader charging network. Now, South Korea has Jeju. We're not sure if the surf is as good. Like Hawaii, Jeju is focusing on a "carbon-free" existence and lowered fossil-fuel dependency as a way to help the environment while addressing the extra expenses involved in providing fuel locally, Wards Auto says. Jeju, which is about 720 square miles, provides about $7,000 worth of EV incentives on top of those provided by the South Korean government. As a result, the cost of buying an EV can be cut in half. In the case of a Chevrolet Spark EV, going electric actually has a lower out-of-pocket price tag than buying a gas-powered counterpart on the island. South Korea's Ministry of Environment has earmarked about $14,000 in subsidies for each EV purchase, while 10 South Korean cities are adding on incentives anywhere from about $2,800 to $7,400 per vehicle. South Korean automaker Hyundai and affiliate Kia are just starting to do their part to boost the country's EV sales, which didn't even break the 800-unit mark last year. Kia recently said it will start making its 2015 model-year Soul EV in April, with sales debuting in South Korea by the end of the year. Hyundai is said to start selling its own EV starting in 2016. News Source: Wards AutoImage Credit: Korean Tourism Organization Government/Legal Green Hyundai Kia Electric incentives tax incentives island