2.0 Turbo Hyundai Sonata, 4 Door Sedan, Grey Exterior, Mixed Grey Interior on 2040-cars

Auto blog

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.

Hyundai expanding Tucson fuel cell deliveries to NorCal soon

The Hyundai Tucson Fuel Cell hasn't exactly sold a bazillion copies, but that's all according to plan. Hyundai – like Toyota and Honda with their hydrogen vehicles – it keeping deliveries under control because there just aren't that many H2 refueling centers. Right now, all of these hydrogen vehicles are tooling around the LA area. At the Washington Auto Show this week, Hyundai announced that it would soon start deliveries in Northern California as well. There was no date set for the San Francisco-Bay Area hydrogen cars to arrive, but Hyundai's Mike O'Brien said that because, "We will sell them where there's fuel." Stations are supposed to begin opening in NorCal in the next few weeks. The next area that Hyundai suspects to launch the Tucson Fuel Cell is in the Northeast, which is the plan that other automakers have as well. The Tucson Fuel Cell leases for $499 a month, and includes free hydrogen fuel. There are currently around a dozen stations open in California. O'Brien said that 53 stations have been given fund guarantees by the state of California, but 23 have not yet broken ground. The biggest hurdle, he said, is regulatory – getting all of the different government agencies to work together to approve construction. Hyundai wants governments to get cracking on installing more hydrogen stations because it has plans to sell a second hydrogen vehicle at some point in the world by 2020. Up next on the green car front – we'll see it in Chicago early next month, in fact – is the Ioniq, which will be available with a pure EV, a PHEV and a standard hybrid. Whether the Ioniq will get a hydrogen fuel cell powertrain at some point has not been announced or even hinted at, but we would not be surprised if it does.

Hyundai mulling new small CUV under Tucson

Hyundai maintains it can barely build enough of its core models to satisfy North American consumers, but that doesn't mean it isn't keen to expand its offerings to capture developing segments of the market. According to Edmunds, one of those expanding niches could be the burgeoning subcompact crossover segment. The website quotes Hyundai North America president and CEO John Krafcik as acknowledging his company is "very under-represented" in crossovers, the market's hottest vehicle type.
With the discontinuation of the Veracruz, Hyundai is down to two CUV nameplates, Tucson (pictured) and Santa Fe, the latter of which covers two segments with a two-row Sport and long-wheelbase three-row model. And while Hyundai commands seven percent of the US sedan market, the company estimates it only has two percent of the truck segment.
And while Krafcik stops short of confirming a new model, he acknowledges "a new segment is emerging" underneath the Tucson and says, "I think it's something to look at." At the moment, the subcompact softroader segment remains small and somewhat amorphous, with tiny CUV offerings like the Buick Encore, Nissan Juke, and now-discontinued Suzuki SX4 illustrating that there are a lot of different ways to package and market such a vehicle.