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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.

Next-gen Kia Optima previewed for New York Auto Show

To say the Optima is a vital product for Kia would be an understatement. In fact, the Korean automaker reports that the sedan has been its best-selling model in America for three years running. Replacing it with an all-new model, then, would be a big move for Kia, and that's exactly what it's gearing up to do. The all-new Optima is previewed here in a pair of teaser renderings, and the car is set to debut at the New York Auto Show. Though Kia has given us little in the way of information to accompany the drawings, it's clear that the design has borrowed heavily from the Sportspace concept that debuted in Geneva earlier this month – albeit in production form, and with a trunk instead of an extended roofline. The outgoing Optima was introduced five years ago and is built at plants around the world for local consumption, including in Georgia for the North American market. This will be the fourth iteration of the breed. KIA TO UNVEIL ALL-NEW OPTIMA AT NEW YORK AUTO SHOW Following its 2010 debut at the New York International Auto Show, the Optima became a catalyst for Kia Motors' tremendous growth and has been the brand's best-selling vehicle in the U.S. for three years running. Now, five years later, Kia will return to New York on Wednesday, April 1, for the world debut of the passionately designed and obsessively crafted all-new version of its popular midsize sedan. Related Video:

Kia Sportspace Concept is a big, red wagon that previews the future

The Kia Sportspace Concept might preview some design elements for the next-gen Optima, but for now the Korean brand is keeping the focus on this somewhat sporty looking wagon on display at the Geneva Motor Show. Its shape is designed specifically to appeal to European tastes, and the styling comes from the company's design studio Frankfurt, Germany. Despite the European design ethos, there's no mistaking the Sportspace as anything but a Kia. Up front, it features a sharper version of the brand's familiar tiger-nose grille that runs horizontally to link the LED headlights. However, the major visual focus for the concept is the long roof and angled rear hatch. The designers even pitch the D-pillar forward for a slightly more sporty style. The interior almost appears to come from a completely different model. The combination of black upholstery with carbon fiber trim and large pieces of anodized aluminum makes it look like a very dark place for a drive. Kia is apparently trying to appeal to the Sportspace's Swiss audience, though. The company touts that there's enough room to store a set of skis by fitting them between the rear seats. Power for the Sportspace comes from a 2.0-liter turbocharged four-cylinder with 247 horsepower that spins the front wheels, but the automaker doesn't specify anything about the transmission that it all routes through. Looking at the current Optima, it isn't hard to see the future design evolving this way. Get a preview from this big, red wagon on the show floor of the Geneva show in our gallery, above. DESIGN OVERVIEW: THE KIA SPORTSPACE CONCEPT The working week is over. The late afternoon sun is glinting on the ice crystals in the road-side snowbanks and turning the snow-capped peaks ahead pink. The road snakes ahead towards a weekend of fun and action. The journey demands a swift, efficient and refined machine to allow the maximum pleasure to be extracted from the time available. This is exactly the role for which the Kia SPORTSPACE was conceived. Its muscular proportions are ready to deliver a safe, secure but speedy passage to the slopes. Its cosseting and refined interior provides convivial yet individual space for its four passengers. Its sleek and elegant lines – both inside and out – are functional but stylish, allowing its travelling partners both comfort and convenience within a bodyshape that stands out from the crowd. This is a concept that has extracting the maximum from life at its heart.