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Hyundai-Kia fuel-economy errors trigger $300M in federal penalties [w/video]

This amount includes $100-million in civil penalties, the largest such fines in EPA history.
Hyundai and Kia are getting more than a slap on the wrist for overstating the fuel economy of an estimated 1.2-million vehicles in their 2011-2013 model ranges. The Environmental Protection Agency, the Department of Justice and the California Air Resources Board are hitting the automakers with collective penalties valued at around $300 million for Clean Air Act violations. This amount includes $100-million in civil penalties, the largest such fines in EPA history. Specifically, Hyundai is paying a $56.8 million penalty and relinquishing 2.7-million greenhouse gas emissions credits. Kia is paying $43.2 million in penalties and giving up 2.05-million credits.

Consumer Reports criticizes small turbo engines for misleading performance, fuel economy claims [w/video]

Consumer Reports has taken aim at at small-displacement, forced-induction engines, saying the powerplants don't manage to deliver on automaker fuel economy claims. Manufacturers have long held that smaller, turbocharged engines pack all power of their larger displacement cousins with significantly better fuel economy, but the research organization says that despite scoring high EPA economy numbers, the engines are no better than conventional drivetrains in both categories. Jake Fisher, director of automotive testing for Consumer Reports, says the forced induction options "are often slower and less fuel efficient than larger four and six-cylinder engines."
Specifically, CR calls out the new Ford Fusion equipped with the automaker's Ecoboost 1.6-liter four-cylinder engine. The institute's researchers found the engine, which is a $795 option over the base 2.5-liter four-cylinder, fails to match competitors in acceleration and served up 25 miles per gallon in testing, putting the sedan dead last among other midsize options.
The Chevrolet Cruze, Hyundai Sonata Turbo and Ford Escape 2.0T all got dinged for the same troubles, though Consumer Reports has found the turbo 2.0-liter four-cylinder in the BMW 328i does deliver on its promises. You can check out the full press release below. You can also read the full study on the Consumer Reports site, or scroll down for a short video recap.

Hyundai performance boss hints at an Ioniq Electric N

There have been rumblings about what's next for Hyundai's N performance brand, and its chief has just dropped a big hint: a souped-up electric vehicle. Maybe an Ioniq Electric N hatchback? Sure sounds like it. Automotive News got Albert Biermann, head of vehicle testing and high-performance development for Hyundai and Kia, to spill the beans. "When we think of cars after 2021 for N, I think we cannot avoid electrification," he said. "We will have an EV sooner or later. It's just a matter of timing." Hyundai's N brand is still in its relative infancy. The Veloster N will be the only model available in the U.S., and it doesn't go on sale until later this year. It joins the Europe-only i30 Fastback N and i30 N hatchback, the former of which debuts in October at the Paris auto show and hits showrooms in Europe by the end of the year. Biermann said a fourth N model was already in his long-term budget and could be an SUV, which aligns with previous reports suggesting it could be either a 247-horsepower Kona N or a 271-hp turbocharged Tucson N. An electric N would be a surprise fifth model, and it could happen soon. "There's a car within the next two or three months that we probably have a chance to show to Vice Chairman Chung (Eui-sun) and our top management," Biermann told Automotive News. "Depending on what is the current mood and situation, we might get a spontaneous 'OK, go for it.'" The Hyundai Ioniq Electric boasts a 136 MPGe rating and a driving range of 124 miles from its 28.0 kWh battery. But it makes only 118 horsepower and 218 pound-feet of torque, so an N version would presumably upgrade those latter figures. By way of comparison, the Veloster N, which goes on sale later this year, delivers 275 hp and 260 lb-ft of torque from its 2.0-liter four-cylinder, while the specs on the standard Veloster are 147 hp and 132 lb-ft for the standard 2.0-liter four-cylinder and 201 hp and 195 lb-ft for the 1.6-liter turbo-four that powers the Turbo model. Biermann suggests an electric N would have an improved battery, bigger motor and inverter with more power. If Biermann's abbreviated timeline projection holds true, it sounds like we'll know more soon. Related Video: