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Hyundai And Kia Penalized $350 Million For Overstated MPG Claims

Nearly two years after Hyundai and Kia announced they exaggerated fuel economy numbers for several of their most popular models, the two Korean automakers have paid a heavy penalty for the transgressions. The Department of Justice and Environmental Protection Agency announced a settlement Monday that will cost the two car companies approximately $350 million. The financial sum includes a $100 million fine, the largest ever levied under the Clean Air Act, and about $200 million in forfeited greenhouse-gas emissions credits. At a time when car buyers rank fuel economy as a top concern when they head to dealerships and the federal government has mandated increased efficiency, Attorney General Eric Holder said the settlement should serve as a warning to automakers not to fudge their numbers. "This will send a strong message that cheating is not profitable," he said. The settlement ends a federal lawsuit filed against the automakers in U.S. District Court, but it's important to note that it doesn't end a class-action lawsuit filed on behalf of consumers. A preliminary settlement in that case, based in Los Angeles, was approved last month, but final approval isn't expected until July 2015. Officials with the EPA said the $100 million figure roughly equals the economic benefits the two companies received from exaggerating the mileage claims on the window stickers of new cars. Fuel-efficient boasts helped Hyundai and Kia establish a strong foothold in the U.S. marketplace. Advertisements for the Hyundai Elantra stated the vehicle achieved 40 miles per gallon in highway driving, and helped the car win the prestigious North American Car Of The Year honors at the Detroit Auto Show for its 2012 model. In July 2011, the advocacy group Consumer Watchdog began receiving complaints from consumers that the Elantra and other Hyundai models fell short of their stated mileage claims in real-world driving. The group wrote to the EPA and Hyundai, asking both to investigate. Government officials said Kia had overstated the mileage on its popular Kia Soul crossover by 6 miles per gallon, and more than a dozen overall models were affected. On Monday, EPA administrator Gina McCarthy said the violations were "egregious." Based on the exaggerations, the EPA calculated that Hyundai and Kia had underreported the greenhouse gas emissions of their fleets by about 4.75 metric tons over the estimated lifetime of the vehicles. That figure aided in the $200 million credit forfeiture.

Hyundai, Kia, Genesis will get chip maker NVIDIA's infotainment in deal

Chip maker NVIDIA Corp on Monday announced that Hyundai Motor Group will use the NVIDIA DRIVE in-vehicle information and entertainment system for all its Hyundai, Kia, and Genesis models from 2022. NVIDIA said the luxury vehicle division of Hyundai, Genesis, already uses NVIDIA DRIVE for its GV80 and G80 models. (You can read a bit about the Genesis infotainment systems in Autoblog's recent driving reviews of the G80 sedan and the GV80 SUV, and our buying guide for the latter.)  NVIDIA declined to say how many vehicles NVIDIA DRIVE would be installed in, but said it is a large number and pointed to the fact that in 2019 Hyundai Motor Group shipped over 7 million vehicles. Hyundai Motor Co is the flagship company of Hyundai Motor Group, and Kia Motors Corp is its sister company. NVIDIA DRIVE includes hardware and software components and uses artificial intelligence to improve the user's experience. The software can be "perpetually" updated, giving vehicles the latest AI cockpit features, said NVIDIA. NVIDIA said it has also been working with Mercedes-Benz, Audi and Honda on in-car entertainment and information systems. Related Video:    

Kia recalls 260k Souls for possible steering failure

Kia will recall 256,459 examples of the 2014-2016 Soul and Soul EV for a steering failure problem. The affected models have production dates between Jan. 18, 2014, and Sept. 30, 2015. According to a chronology (as a PDF) posted by the National Highway Traffic Safety Administration, there are five warranty claims from this issue as of Oct. 29 but no reports of accidents or injuries. On these hatchbacks, the adhesive that secures the steering pinion gear and the steering gear assembly can potentially separate, and if this happens drivers lose control. Dealers will inspect the affected vehicles and replace the pinion plug if necessary. They'll also install a set bolt to further reinforce things. The campaign will begin Dec. 22. RECALL Subject : Steering Gear may Separate Report Receipt Date: NOV 06, 2015 NHTSA Campaign Number: 15V736000 Component(s): STEERING Potential Number of Units Affected: 256,459 All Products Associated with this Recall Vehicle Make Model Model Year(s) KIA SOUL 2014-2016 Details Manufacturer: Kia Motors America SUMMARY: Kia Motors America (Kia) is recalling certain model year 2014-2016 Kia Soul and Soul EV vehicles manufactured January 18, 2014, to September 30, 2015. In the affected vehicles, the adhesive used to secure the steering pinion gear to the steering gear assembly may have insufficient strength, and as a result, the pinion gear may separate from the steering gear assembly. CONSEQUENCE: If the pinion gear separates, there would be a loss of steering which could increase the risk of a crash. REMEDY: Kia will notify owners, and dealers will inspect and, if necessary, replace the pinion plug that secures the pinion gear. Dealers will also install a set bolt for additional reinforcement. These repairs will be performed free of charge. The recall is expected to begin December 22, 2015. Owners may contact Kia customer service at 1-800-333-4542. Kia's number for this recall is SC125. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov. Related Video: