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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

2018 Kia Stinger GT AWD Review: A 1,400-mile grand tour in Kia's grand tourer

They call the 2018 Kia Stinger a GT. It's powerful and sleek with a low-slung seating position, quick steering and, even with all-wheel drive, a tail-happy nature. It looks killer in red. And with its V6-powered engine, the letters GT are even festooned upon its liftgate. Well, that's nice, but how does it actually deliver on the grand-tourer formula of rapid, comfortable and stylish transportation? Well, to find out, I put the Stinger GT to a grand-touring test. Starting in the western Rockies and the remote ski town of Crested Butte, Colo., my destination would be home in Portland, Ore. The Google-suggested way is 18 hours on mostly Interstates 70, 15 and 84. However, interstates are boring and are better suited to a perfectly capable but utterly soulless family transportation appliance. A proper grand tour should include two-lane highways and scenic detours, so that's exactly what I'd do. It would add hours and miles, but also, most hopefully, a vastly more memorable experience. Well, as my photos will attest, the scenery didn't disappoint. And, as you'll see in the videos, neither did the Stinger. Episode 1: Setting Off Episode 2: It's a hatchback! Crested Butte, Colo., to Moab, Utah Crested Butte is way off the beaten path, a charming mountain village deep in the western Colorado Rockies mostly free from the usual uber-commercial, Disney-like feel of ritzier, easier-accessed ski towns. Its main street thoroughfare, authentically Western rather than engineered to be so, is surrounded by scattered subdivisions and majestic mountains beyond. It had been buried in 9 feet of snow just a few weeks prior. The local citizenry didn't seem particularly bothered by that. Though most of that 9 feet had melted, the ground was still very much white, requiring the Stinger GT to shed its usual summer rubber in favor of Michelin Pilot Alpin PA4 winter tires. These are specifically intended for performance car applications like the Stinger, sacrificing just a smidge of icy traction in favor of superior handling and steering feel when on dry pavement. There's no need to delay the verdict here: after 1,400 miles, the Stinger felt just as generally compelling and dynamic on the Alpins as when I drove it last November in Southern California on summer tires. The other half of the Stinger's snow defense is the GT's optional all-wheel-drive system, which adds $2,000 to its price tag (as-tested $52,300).

Kia confirms $1B factory in Mexico to be completed in 2016

Kia is the latest in a string of automakers to announce plans to build new or expanded factories in Mexico. The Korean company has signed a $1 billion deal to establish a plant in Monterrey in the state of Nuevo León, with construction starting in late September. If everything proceeds on schedule, the facility should be complete in the first half of 2016 and be able to produce 300,000 vehicles a year.
The $1-billion investment will create a "new, highly automated manufacturing plant," according to Kia's announcement, a facility covering 1,235 acres of land. Confirming earlier rumors, Kia will produce compact models there, but the company won't reveal specific model names, just yet. When complete, the factory in Mexico will boost the automaker's annual capacity to 3.37 million vehicles a year with 1.69 million of those in Korea and 1.68 million abroad. It will also join Kia's plant in Georgia (where the Optima and Sorento are made) as the business' other North American location.
Kia hasn't kept plans for the Mexican factory a very close secret and openly admitted it was "being considered as a possible location" to Autoblog. The country was chosen partially because of its free-trade agreements (read: NAFTA), that make it less costly to move models elsewhere, not to mention its easy access to the North, Central and South American markets. The new plant should also alleviate some of the tight supply issues Kia has had in the US.