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Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

Hyundai fined $17.35 million for late Genesis recall

The National Highway Traffic Safety Administration has slapped Hyundai with a $17.35 million fine for delaying a recall on the 2009 to 2012 Hyundai Genesis sedan back in 2013. The recall grew from the original figure of 27,500 units to 43,500 sedans in November of last year, and focused on brake fluid that wouldn't prevent corrosion of the hydraulic control unit.
"Hyundai remains committed to making safety our top priority, and is dedicated to ensuring immediate action in response to potential safety concerns including the prompt reporting of safety defects," David Zuchowski, Hyundai's president and CEO, said in a statement.
Hyundai originally issued a technical service bulletin warning dealers to replace brake fluid. This was expanded to a full recall following NHTSA's involvement.

Hyundai Genesis to get twin-turbo V6 in 2017 or 2018

Hyundai is looking to turbocharged power as ways to downsize its engines for better emissions and fuel economy while maintaining power. Among the new mills slated to launch is a twin-turbo V6 that's likely going into the Genesis in a few years. "You're going to see smaller displacement, more use of turbocharging. A lot of it is weight-related, all of it is CAFE-related," Hyundai Motor America CEO David Zuchowski said to Automotive News about the company's powertrain future. The Korean brand is hardly alone in this move towards downsizing, though, and practically every major automaker is moving in this direction, even Honda with the next Civic. According to Zuchowski, the twin-turbo V6 will make its way into the Genesis sedan in 2017 or 2018. The company is aiming for power to be on par from the luxury model's current 420-horsepower, 5.0-liter V8. The new engine should weigh less, though. The shift towards turbos is planned for the entire model lineup, not just Hyundai's higher-end vehicles. For example, the recently announced US-spec version of the 2016 Tucson now offers a boosted 1.6-liter four-cylinder with 175 hp and 195 pound-feet of torque. Several years ago, there were rumors about a possible turbocharged V6 for a future Genesis Coupe.