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Hyundai finally settles inflated fuel economy claims lawsuit for $41.2 million

Remember when Hyundai and Kia changed their claimed fuel economy numbers for a bunch of models? That happened back in 2012, and Hyundai has finally settled a lawsuit concerning the economy adjustment with a payment of $41.2 million. The lawsuit was filed by 33 state attorneys general, as well as one from Washington D.C. Each state will decide how to use its money from the settlement. According to Hyundai, this settlement was an "amicable agreement," and the company also denies any wrongdoing in changing claimed fuel economy numbers. Hyundai also reports that the agreement was reached, in part, due to the reimbursement program instituted after the economy adjustment. This program allows owners to be reimbursed the extra fuel cost, with payments determined by miles driven. The payments are sent after an owner has an affected car's odometer checked by a dealer. In addition, Hyundai also offered lump-sum payments as an option after the results of a class-action lawsuit. So far, the company reports about 75 percent of eligible owners have participated in the program. This isn't the only major payment Hyundai has made concerning the fuel economy issue. In 2014, Hyundai paid roughly $300 million in fines to the EPA. The company was also sued for inflated fuel economy claims in South Korea. In the US, models affected by the adjustment include the Hyundai Santa Fe, Accent, Veloster, Sonata Hybrid, Tucson, Genesis and Azera, along with the Kia Soul, Rio, Sorento, Sportage and Optima. Related Video: Image Credit: Patrick T. Fallon/Bloomberg via Getty Images Government/Legal Green Hyundai Kia

Kia Niro hybrid CUV teased again ahead of Chicago debut

The 2016 Detroit Auto Show just started, but Kia is already looking forward to February. That's when the Chicago Auto Show happens, and that's when Kia promises to unveil its Niro hybrid compact crossover. The company's two teaser images offer a great look at the little CUV, especially when you consider them with the earlier design sketches. The Niro is part of Kia's push to create a greener lineup through 2020, and the model packs a dedicated hybrid powertrain. Earlier reports suggest that it consists of a 1.6-liter four-cylinder and 47-horsepower electric motor with a 1.56-kWh battery. A six-speed dual-clutch gearbox will likely put the power to the road. Kia's styling centers in California and Namyang, South Korea, are responsible for the Niro's look. The designers use a narrow version of the company's tiger-nose grille for this CUV, but the high-mounted headlights create a clear family resemblance to the latest Sportage. The roofline appears to have a coupe-like arch, and the rear gets nearly rectangular taillights that angle into the hatch. If the Niro name sounds familiar, that's because Kia first used it on a slightly bulbous crossover concept at the 2013 Frankfurt Motor Show. You'll have to wait a month for all the details, but until then, enjoy the teasers and press release below. KIA REVEALS FIRST IMAGES OF ALL-NEW NIRO HYBRID UTILITY VEHICLE Kia reveals first images of all-new Niro Hybrid Utility Vehicle Exclusive first images of Niro HUV illustrates sporty and versatile design Niro HUV world premiere set for Chicago Auto Show in February 2016 Dedicated hybrid powertrain specifically developed for all-new model (SEOUL) January 12, 2016 – Kia has today unveiled the first official images of the sporty and versatile Niro – an all-new Hybrid Utility Vehicle (HUV) that's set to add a fresh dimension to the global compact SUV market. The styling of the Niro was led by Kia's design centers in California, USA and Namyang, Korea and incorporates the practicality and aesthetic allure of a compact SUV, with a sleek, aerodynamic body and subtly sculptured surfaces. Highlighting the raised rear haunches that endow the HUV with an athletic stance, the image also reveals high-mounted LED taillights that complement an uncluttered rear end. The slim character line and rear windows emphasize the car's sleek profile, while allowing greater room for the Niro's muscular wheel arches.

Kia decides on Mexico plant location for small car assembly

Mexico has long been a hot spot for auto manufacturing, but the country's fortunes have been boosted lately, with Honda, Mazda and Nissan recently adding factories there, and BMW is said to be poised to join them soon. Now, new reports indicate that Kia might start building south of the border to keep up with demand.
Insiders speaking to Reuters claim that the Korean automaker is very close to striking a deal to build a factory for two small models in Monterrey, Mexico, with a 300,000-vehicle annual capacity. Assembly could reportedly begin as soon as 21 months after ground is broken.
If true, Kia has done a fantastic job of keeping the deal under wraps. The only hint at anything like this brewing was a rumor last year that Hyundai may have investigation building a factory in Mexico. The company currently operates a factory in Georgia that builds the Optima and Sorento.