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Kia Sportage MSRP up by almost 14 percent for 2014, starting at $21,600*

When Kia introduced the updated 2014 Sportage back in September, one of the biggest things that stood out to us was that the base model was dropped. Not only did this mean the Sportage would no longer be offered with a manual gearbox, but we also expected a price increase to follow. We were right.
The entry-level trim for the 2014 Sportage is now the LX, which starts at $21,600 (not including $850 for destination). This is only a $400 increase over the 2013 Sportage LX, but it represents a $2,600 jump (13.6 percent) in the Sportage's starting price point. At this new price, the Sportage is now priced higher than the Mazda CX-5, Hyundai Tucson and Mitsubishi Outlander Sport and lower than many other compact crossovers like the Ford Escape, Chevy Equinox, Nissan Rogue, Jeep Cherokee and Toyota RAV4. Pricing for the 2014 Sportage EX has increased by $800, starting at $25,000, while the sportier, turbocharged Sportage SX holds steady at $26,900.
In addition to other minor changes like slightly refreshed exterior styling, a sportier suspension setup for the LX trim level and more available cabin tech, the other key update made to the 2014 Sportage is the addition of direct injection to the base 2.4-liter four-cylinder engine. This brings a slight bump in power output (from 176 horsepower and 168 pound-feet of torque in 2013 to 182 hp and 178 lb-ft for 2014), but, for some reason unknown to us, it dings fuel economy. With ratings of 21 miles per gallon in the city and 28 mpg on the highway, the front-wheel-drive Sportage loses 2 mpg for the highway rating compared to 2013, while the all-wheel-drive model's 19 mpg city and 26 mpg highway is a drop of 1 mpg for both figures.

Hyundai, Kia want to improve fuel economy by 25 percent

Hyundai and sister company Kia are giving themselves a little bit of time to make up a lot of ground in the fight for better fuel economy. We wonder if a recent multi-million fine might have something to do with this public target. The connected South Korean companies are vowing to increase their fleetwide fuel economy by 25 percent by 2020, Reuters reports. This will be done by further advancing their powertrains, looking at other ways to reduce weight, upgrading diesel engines and improving transmissions. That will all take money, but Kia and Hyundai will have $300 million less to invest thanks to a recent fine of more than $300 million from the US Environmental Protection Agency (EPA), the Department of Justice and the California Air Resources Board (CARB) for incorrect fuel economy numbers on around 1.2 million vehicles from the 2011-2013 model years. The civil penalties – $100 million of the total – are the largest in EPA history. In late 2012, Hyundai and Kia admitted to overstating the fuel economy of a number of models and said they'd change the official MPG figures and compensate owners. Hyundai spokesman Chris Hosford confirmed to AutoblogGreen that the company set the dramatic fuel-economy improvement targets. In the US, where Hyundai and Kia are operated as separate entities, Hyundai "remains committed to meeting the CAFE (Corporate Average Fuel Economy) requirements that have been set out by the US government," Hosford said The EPA recently released a report on fuel-economy and put Hyundai fourth in overall fleetwide fuel economy in the US among vehicle makers for the 2014 model year. The top three were Mazda, Honda and Subaru.

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.