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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:

Kia recalls 12k 2016 Sorento models for faulty accelerator pedal

Kia is recalling 12,361 examples of the 2016 Sorento in the US because the accelerator pedal may stop working correctly. All of the affected vehicles were made between October 27, 2014, and January 29, 2015. According to the recall documents submitted to the National Highway Traffic Safety Association, a capacitor on the circuit board for the accelerator assembly may be improperly soldered. This can trigger a fault, causing the 2016 Sorento enters Limp Home Mode or in some other cases go into Forced Idle Mode, which only allows idling speed. In either situation, the check engine or electronic stability control lights would likely illuminate, according to Kia. Still, if this fault occurs, the lack of acceleration can put drivers in danger. To repair things, Kia will replace the entire accelerator pedal assembly with an improved unit. Changing out the parts will take about an hour, and obviously this will be done at no cost to owners. According to the NHTSA documents, there have been no accidents or injuries as a result of this problem. You can also read Kia's FAQ to owners and the full report on the recall in PDF format, as well. Related Video: RECALL Subject : Vehicle may not be able to Accelerate Report Receipt Date: FEB 13, 2015 NHTSA Campaign Number: 15V089000 Component(s): VEHICLE SPEED CONTROL Potential Number of Units Affected: 12,361 All Products Associated with this Recall Vehicle Make Model Model Year(s) KIA SORENTO 2016 Details Manufacturer: Kia Motors America SUMMARY: Kia Motors America (Kia) is recalling certain model year 2016 Sorento vehicles manufactured October 27, 2014, to January 29, 2015. Due to an improperly soldered component in the accelerator pedal assembly, the driver may not be able to accelerate the vehicle. CONSEQUENCE: If the vehicle is unable to be accelerated, there is an increased risk of a crash. REMEDY: Kia will notify owners, and dealers will replace the accelerator assembly, free of charge. The recall is expected to begin in February 2015. Owners may contact Kia customer service at 1-800-333-4542. Kia's number for this recall is SC115. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Consumer Reports says infotainment systems 'growing first-year reliability plague'

The Consumer Reports Annual Auto Reliability Survey (right) is out, and the top two spots look much the same as last year's list with Lexus and Toyota in first and second place, respectively. However, there are some major shakeups for 2014, with Acura plunging eight spots from third in 2013 to 11th this year, and Mazda replaces it on the lowest step of the podium. Honda and Audi round out the top five. This year's list includes six Japanese brands in the top 10, two Europeans, one America and one Korean.
Acura isn't the only one taking a tumble, though. Infiniti is the biggest loser this year by dropping 14 spots to 20th place. Other big losses come from Mercedes-Benz with an 11-place fall to 24th, and GMC, which declines 10 positions to 19th.
Perhaps unsurprisingly, it's not traditional mechanical bugs hauling down these automaker's reliability scores. Instead, pesky problems with infotainment systems are taking a series toll on the rankings. According to Consumer Reports, complaints about "in-car electronics" were the most grumbled about element in new cars. Problem areas included things like unresponsive touchscreens, issues pairing phones and multi-use controllers that refused to work right.