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Hyundai, Kia earmark $760 million to settle U.S. lawsuits over engine fires

SEOUL — Hyundai and affiliate Kia have earmarked 900 billion won ($758 million) to settle U.S. class action litigation and address engine-related issues including fires and failures in the United States and South Korea. The move marks the South Korean auto giant's first major effort to resolve years of trouble over engine defects that have also sparked probes by the U.S. safety regulator and prosecutors. Hyundai Motor will make a provision of about 600 billion won in its July to September earnings while Kia will book one for about 300 billion won, they said on Friday. Hyundai and Kia said in a statement that under the U.S. settlement they would install software to monitor for symptoms of engine failure and take other steps, including offering compensation options and lifetime warranties. A total of 4.17 million Hyundai and Kia models equipped with Theta II gasoline direct injection (GDI) engines, which were sold in naturally aspirated 2.0-liter and 2.4-liter displacements, and had a turbocharged derivative, will be affected by the U.S. settlement. Hyundai and Kia, together the world's fifth-biggest automaker by sales, recalled nearly 1.7 million vehicles in the United States to address the possibility of engine fires. In November, Reuters reported that U.S. federal prosecutors had launched a criminal investigation to determine if the recalls had been conducted properly. Since 2017, the U.S. safety regulator has been investigating whether the recalls covered enough vehicles and were conducted in a timely manner. The investigation comes after Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in 2016 to tell the National Highway Traffic Safety Administration (NHTSA) the companies should have recalled more vehicles over the problem, citing an internal report. Hyundai Motor at that time denied allegations. The NHTSA this year opened a fresh investigation into 3 million Hyundai and Kia vehicles after reviewing reports of more than 3,000 fires that injured more than 100 people. That probe came in response to a petition seeking an investigation filed in June by the nonprofit Center for Auto Safety.

Kia Stinger will be getting more power for 2021

The 2021 Kia Stinger will get more oomph when it arrives later this year, but a new report says the tweaks will come from modifications to its existing powertrain, not a new option atop the range. The report from Australian site CarSales, which cites anonymous sources close to the automaker, appears to throw cold water on rumors that the Stinger would get the 3.5-liter turbocharged V6 from the new Genesis G80 sedan, which delivers 380 horsepower and 391 pound-feet of torque. The report says that the G80's 304-hp 2.5-liter turbo-four will not be coming to Australia as a replacement for the Stinger’s base 255-hp 2.0-liter turbo-four, and we would doubt it would for the United States, either.  In its range-topping models, the Stinger's 3.3-liter twin-turbo V6 offers 365 hp and 376 lb-ft. CarSales reports that engine will be juiced for more power by tweaking its bimodal exhaust. Unspecified design and equipment changes are also reportedly due. Now in its third year on the market, the Stinger turned a lot of heads when it debuted in 2017 at the Detroit auto show, and a long-term test version of the 2018 Stinger GT impressed Autoblog editors. It has failed to catch fire with buyers, but a performance-oriented premium sedan/hatchback made by Kia was always going to be a sales success long shot.  During the first three months of 2020, Kia sold 2,560 Stingers in the United States, down nearly 21%. Sales in 2019, when there was no global pandemic to skew numbers, totaled 13,861, down 17.5%. Kia discontinued the Premium trim packages for 2020. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.