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Hyundai and Kia settle lawsuit over hybrid technology

Hyundai and Kia will end Paice's patent infringement lawsuit by signing a licensing agreement to use the firm's hybrid technology for their vehicles, according to Bloomberg. A statement by Paice says that this new contract ends any legal disputes between the companies, but doesn't disclose the cost of the settlement. A Hyundai spokesperson declined to comment about the case's resolution to Autoblog. Paice and the Abell Foundation, an investor, brought the case against Hyundai and Kia in 2012 over the tech in the Sonata and Optima Hybrids, and the court sided in the patent holder's favor in October 2015. The jury ordered the automakers to pay at least $28.9 million, but the judge could have tripled that amount because the infringement was allegedly intentional. Hyundai pledged to appeal the ruling. Paice's patents come from the work of Alex Severinsky and cover ways to make engines and electric motors work together. The company has a history of defending its tech, including settlements with Toyota and Ford. It also filed another case against the Blue Oval in 2014 over the hybrid or plug-in systems in the C-Max, Fusion, and Lincoln MKZ. Hyundai and Kia sign licensing agreement with Paice Paice, a pioneer in hybrid electric vehicle technology, has reached an agreement to license all of its hybrid vehicle technology to Hyundai Motor Co. and Kia Motors Corp. Paice has now licensed all or part of its hybrid vehicle technology portfolio to Toyota, Hyundai/Kia, and Ford – three of the world's six largest automakers. These three companies currently account for 90% of all hybrid vehicle sales in the United States. "We are gratified to reach a licensing agreement with Hyundai and Kia, who are among the undisputed leaders in the hybrid industry. This agreement further validates the importance of our technology, and we hope to reach additional agreements with other major automakers," said Frances Keenan, chairman of the Paice Board of Directors. The confidential licensing agreement with Hyundai and Kia brings an end to all litigation between the companies. Paice and the Abell Foundation, a Baltimore-based non-profit organization that invested in Paice, filed a patent infringement lawsuit against Hyundai and Kia in U.S. District Court in 2012. After an eight-day jury trial earlier this year, the jury sided with Paice and Abell, awarding $28,915,600. Hyundai and Kia currently rank third in U.S. hybrid car sales.

Kia calls reports of second US plant 'groundless'

In discussing how Kia planned to use a focus on quality to raise its brand perception and take the fight to BMW and Audi instead of Toyota, a recent article in Automotive News Europe said one of the primary constraints was production capacity; Kia simply doesn't have the ability to make enough cars to meet its aims with the plants it has.
The CEO of Hyundai-Kia is said to be reluctant to build more plants because of that focus on quality and the fact that its suppliers are stretched to the limit. The effects of that position are being felt right now with both makers losing market share, as in the case of Hyundai not being able to make enough of its Veloster Turbo for the US market.
A South Korean newspaper apparently reported last week that Kia was planning to build a second factory in Georgia with capacity for up to 150,000 units annually, and that the company would break ground as soon as this month on "KMMG2." Kia has responded to the news by saying, "The report is all groundless." The mayor of West Point, site of the current KMMG plant, said he didn't know anything about such plans, nor did the Georgia department of economic development have knowledge of a new Kia factory.

Kia calls in 87k Fortes over fan fire issue

An electrical issue on the 2014 Forte has prompted Kia and the National Highway Traffic Safety Administration to issue a recall for 86,880 vehicles across America. The problem stems from the resistor for the cooling fan that the Korean automaker has found could overheat and melt, which would increase the risk of a fire. And fires in an automobile, needless to say, are not a good thing – unless they're occurring inside a combustion chamber. The issue affects units manufactured between December 5, 2012, and April 17, 2014. Owners of said Fortes can expect to hear from Kia to arrange to bring their vehicles in to their local dealer to have the multi-fuse unit replaced – and, for those manufactured between December 5, 2012, and January 27, 2014, the cooling fan as well. Vehicles equipped with the 1.8-liter engine will also have their ECUs reflashed while they're at it. RECALL Subject : Cooling Fan Resistor May Melt Report Receipt Date: JAN 16, 2015 NHTSA Campaign Number: 15V015000 Component(s): ELECTRICAL SYSTEM Potential Number of Units Affected: 86,880 Manufacturer: Kia Motors America SUMMARY: Kia Motors America (Kia) is recalling certain model year 2014 Kia Forte vehicles manufactured December 5, 2012, to April 17, 2014. In the affected vehicles, the cooling fan resistor may overheat and melt. CONSEQUENCE: If the cooling fan resistor overheats and melts, there is an increased risk of a vehicle fire. REMEDY: Kia will notify owners, and for vehicles produced from December 5, 2012 to January 27, 2014, dealers will replace the cooling fan resistor and multi-fuse unit. For vehicles produced from January 28, 2014 to April 17, 2014, dealers will replace the multi-fuse unit only. Owners of vehicles with a 1.8L engine will also have the engine control unit software updated. The recall is expected to begin February 24, 2015. Owners may contact Kia customer service at 1-800-333-4542. Kia's number for this recall is SC113. 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.