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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.

Redesigned Kia Sorento lineup to include hybrid, plug-in models

The next generation of Kia's mid-size crossover will be electrified, a company executive confirmed Friday. The redesigned Kia Sorento, due in 2020 as a 2021 model, will be offered in both hybrid and plug-in hybrid variants. Kia's European COO, Emilio Herrera, confirmed the new green models in an interview with Automotive News Europe. They will join the Niro (which is offered both as a PHEV and a pure EV) and the delayed 2021 Soul EV in Kia's stable of electrified crossovers.  Details are still slim, and while the U.S. is the largest potential market for the Sorento, American buyers have been hesitant to jump on larger hybrid models. At this point, it's not clear whether the two hybrid models will be included in the variants available with the new Sorento launches, or whether they will be added to the lineup later in the crossover's product cycle.  Autoblog has reached out to Kia for clarification on timing and availability and we will update this story if we learn any pertinent information.  We do know that the new Sorento is due in 2020, and will share its fundamental architecture with sister brand Hyundai's new Santa Fe. Hyundai has not announced formal plans to offer hybrid variants of the Santa Fe here in the states, but electrified powertrains were hinted at for Europe when the crossover was originally unveiled at the Geneva Motor Show back in 2018.  Like Hyundai, Kia has been working hard to overhaul its crossover and SUV lineup here in the United States, where customers are migrating to taller vehicles in droves. The introduction of the larger Telluride has made some room for the stretched Sorento to shrink back into its primary role as a two-row mid-sizer. Related Video    

Hyundai Q1 profit triples, as it adjusts production due to chip shortage

  SEOUL — Hyundai Motor Co posted a first-quarter profit that nearly tripled to its highest in four years as people bought its luxury cars, but warned it would have to adjust production again in May because of a chip shortage. Unlike its rivals, the South Korean automaker staved off production halts in the first quarter, thanks to a healthy chip inventory. But the shortage, exacerbated by factors including a fire at a chip factory in Japan and storms in Texas, is now catching up with Hyundai. Hyundai, which has lagged its rivals in the electric vehicle (EV) race, also said on Thursday that it was developing solid-state batteries and planned to mass produce EVs using solid state batteries in 2030. In February, Hyundai launched its Ioniq 5 electric midsize crossover, the first in a planned family of EVs that it hopes will propel it into the third rank of global EV makers by 2025. Hyundai Motor and Kia together aim to sell 1 million EVs in 2025. In the quarter ended March 31, Hyundai was unscathed as people at home and the United States snapped up its high-margin sports-utility vehicles and premium Genesis cars as the coronavirus pandemic dragged on, fueling car ownership. Net profit surged 187% to 1.3 trillion won ($1.16 billion) from 463 billion a year earlier, when business slumped as countries shut down to limit the spread of the coronavirus. This was in line with an average Refinitiv SmartEstimate. Revenue rose 8.2% to 27.4 trillion won. Hyundai is expected to report net profit of 1.4 trillion won for the April-June period, up 536% from the corresponding period a year earlier, Refinitiv SmartEstimate showed. Hyundai affiliate Kia Corp reported operating profit of 1.1 trillion won for January-March, up 142% on the year. Hyundai, which together with Kia is among the world's top 10 automakers by sales, has temporarily paused production three times since the beginning of this month and saved chips for its most popular models. "The condition of semiconductor parts is being a little more prolonged than we expected," said Seo Gang-hyun, an executive vice president at Hyundai. "As the semiconductor procurement condition is rapidly changing, it's difficult to predict production status after May.