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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 teases updated Equus before Big Apple debut

The digital ink has yet to dry on some of our Geneva Motor Show coverage, and we're already shifting gears getting ready for the New York Auto Show. To help get us in the New York state of mind, Hyundai has released this shadowy image hinting at the refreshed 2014 Equus that it will be unveiling at the end of the month at NYC's Javits Center.
While we can't make out any major changes in this single image, Hyundai promises at least 30 updates to its flagship sedan including improvements to styling, cabin materials and ride and handling as well as advancements in advanced safety features and "driver technology displays." If we had to guess, the latter sounds like it might be something along the lines of a digital, reconfigurable gauge cluster. The only major difference we can actually see in this image are the new multi-spoke wheels, but we're sure Hyundai will be dropping some more hints before the official introduction on March 27.

Recharge Wrap-up: Tesla battery degradation graphed, Hyundai plans fuel cell hub in Korea

A man has created a graph of Tesla Model S battery degradation over time. Merijn Coumans of Holland is tracking the owner data gathered on from Model S owners in a single file and graphing it visually. Coumans continually updates the graph of drivers' maximum ranges to give a look at battery degradation over the life of the car. Coumans tracks mileage and even number of visits to Superchargers in his data. Tesla provides an eight-year battery guarantee regardless of mileage. Read more at the Steinbuch blog. US plug-in vehicle sales are expected to surpass 300,000 when the data is tallied at the end of this month. That is 30 percent of President Obama's goal of 1 million battery electric cars and plug-in hybrids by the end of 2015. Energy Secretary Ernest Moniz admitted the US won't reach the goal, saying, "We're going to be a few years after the president's aspirational goal of the end of 2015, but I think that we are within a few years of reaching that goal." Green car analyst Alan Baum projects the 1 million EV milestone will be met in 2018. Read more at Hybrid Cars. Hyundai and the South Korean government plan to create a hub for fuel cell technologies. Hyundai and Kia will give up unused patents to automotive startups focused on fuel cells at a recently launched innovation center in Gwangju. "Hyundai Motor will offer substantial assistance in the whole process of corporate growth ranging from the development of ideas to industrialization to making inroads into global markets," says South Korea's President Park Geun-hye. Hyundai hopes this will make the city a center for hydrogen technology. Read more at Just Auto. Mayor Boris Johnson has approved a cycling superhighway for the city of London. Set to be built along the Thames embankment, the system of cycling lanes could help encourage more people to ride their bikes, reducing automotive traffic congestion and relieving pressure on other transit networks. Opponents are upset that the cycling highway will increase driving time across the city, and call cyclists a "loud minority," whose numbers doesn't justify the new lanes. Read more at Treehugger. Kansas and Nebraska are joining the challenge against the EPA's new ethanol emissions rules. The EPA's Moves2014 regulations seek to reduce automotive sulfur emissions by 60 percent, but, says Kansas Attorney General Derek Schmidt, the ethanol emissions measurement model is faulty and was adopted without public comment or review.