2012 Kia Optima Ex on 2040-cars

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Hyundai, Kia want to improve fuel economy by 25 percent

Hyundai and sister company Kia are giving themselves a little bit of time to make up a lot of ground in the fight for better fuel economy. We wonder if a recent multi-million fine might have something to do with this public target. The connected South Korean companies are vowing to increase their fleetwide fuel economy by 25 percent by 2020, Reuters reports. This will be done by further advancing their powertrains, looking at other ways to reduce weight, upgrading diesel engines and improving transmissions. That will all take money, but Kia and Hyundai will have $300 million less to invest thanks to a recent fine of more than $300 million from the US Environmental Protection Agency (EPA), the Department of Justice and the California Air Resources Board (CARB) for incorrect fuel economy numbers on around 1.2 million vehicles from the 2011-2013 model years. The civil penalties – $100 million of the total – are the largest in EPA history. In late 2012, Hyundai and Kia admitted to overstating the fuel economy of a number of models and said they'd change the official MPG figures and compensate owners. Hyundai spokesman Chris Hosford confirmed to AutoblogGreen that the company set the dramatic fuel-economy improvement targets. In the US, where Hyundai and Kia are operated as separate entities, Hyundai "remains committed to meeting the CAFE (Corporate Average Fuel Economy) requirements that have been set out by the US government," Hosford said The EPA recently released a report on fuel-economy and put Hyundai fourth in overall fleetwide fuel economy in the US among vehicle makers for the 2014 model year. The top three were Mazda, Honda and Subaru.

Hyundai, Kia recall 270,000 cold-weather state vehicles over rust

Hyundai has announced plans to recall 240,000 Sonata and Azera models registered in the northern United States over corrosion caused by the use of road salt. Exposure to the salt can cause rust to form (we know, basic chemistry here), and that the corrosion can change the alignment of the rear wheels, according to Reuters.
Sonatas from the 2006 to 2010 model years, built between March 1, 2005 and January 21, 2010, and Azeras from the 2006 to 2011 model years, built between September 27, 2005 and November 22, 2010, are covered only if they were registered in the following states: Connecticut, Delaware, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, West Virginia, Wisconsin and Washington, DC. So basically, every state from the Midwest, to the central Atlantic coast, to New England. It is unclear exactly how many Sonatas or Azeras make up the 240,000 total number.
Hyundai is also recalling 20,300 of its 2013 Santa Fe Sports, while sister company Kia is recalling 9,345 2014 Sorentos. This second recall only covers Santa Fe Sport and Sorento models with the base, 2.4-liter engine and front-wheel drive. Apparently, the front axle driveshaft can develop cracks and separate.

Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.