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Did a US automaker blow the whistle on Hyundai, Kia fuel economy issue?

In all of the most hotly contested mainstream segments of the motoring universe, the difference of one mile per gallon averaged on a widow sticker can mean the difference between a sale and a walk-off - to say nothing of two or three mpg. So, when Hyundai and Kia were forced to reveal that many of their 40-mpg ratings were actually 38s and 37s, well, it made for big news.
It also, conceivably, made for a competitive disadvantage immediately, when the Korean automakers' products were being shopped versus the guys down the block. And it's that disadvantage that makes a recent story from Automotive News so juicy.
AN is reporting that Margo Oge, former head of the Environmental Protection Agency's Office of Transportation and Air Quality, got a tip in 2010 that Hyundai/Kia were "cheating" to get its impressive fuel economy numbers. The tip, said Oge (who retired from the EPA this past September), came from a senior vice president from a domestic automaker. The source was credible enough for Oge to launch an audit of the Hyundai figures, which ultimately lead to the debacle that we reported on a few months ago, and that the Korean company has been trying to bounce back from ever since.

Kia America shuffles executives

Kia announced a sudden and massive shuffle of its most senior executives in North America, including the resignation of its CEO and new roles for some of his top lieutenants. The biggest change is the departure of Byung Mo Ahn, who had until now served as both CEO of Kia Motors America and head of the company's manufacturing operations in Georgia, as well as a group vice chairman. Ahn is stepping down from all three positions with immediate effect, but will stay on in an advisory capacity. In his place, Jang Won Sohn moves from his previous post as a senior vice president at the home office to take over Kia Motors America. The task of running Kia Motors Manufacturing Georgia will fall to Hyun Jong Shin, currently the plant's executive vice president and chief operating officer. Along with those replacements, Kia promoted Michael Sprague (pictured) to the newly created position of COO and executive vice president for Kia Motors America – a step up from his current title as EVP of sales and marketing. He reports directly to Sohn and takes over responsibility for product planning as well as sales, marketing and service. KIA MOTORS AMERICA STATEMENT REGARDING ORGANIZATIONAL CHANGES Effective immediately, the Group Vice Chairman and CEO of Kia Motors America (KMA) and Kia Motors Manufacturing Georgia (KMMG), Byung Mo Ahn, has left these positions and will become a company advisor. Jang Won Sohn, formerly a Senior Vice President at KMC, assumes the position of President and CEO of KMA, and Hyun Jong Shin, formerly KMMG's Executive Vice President and Chief Operating Officer, assumes the position of President and CEO of KMMG. Michael Sprague, formerly KMA's Executive Vice President of Sales and Marketing, has been appointed to the newly created position of Chief Operating Officer and EVP of KMA, reporting directly to Mr. Sohn, and will serve as the central point of contact for all sales, marketing, service and product planning functions.

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."