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Recharge Wrap-up: Hyundai/Kia fined $755M for exaggerated MPG ratings; BMW dealers want more i8s

The fine against Hyundai and Kia has grown to $755 million for overstating fuel economy ratings. $360 million of that fine comes from the EPA for violation of the Clean Air Act: $100 million is a civil penalty, $210 million is a forfeiture of greenhouse gas credits and another $50 million will pay for independent fuel economy audits on future models. The remaining $395 million is a settlement for customers who purchased the affected vehicles. A slew of 2011 to 2013 models were found to have fuel economy ratings overstated by one to six miles per gallon. Customers will be awarded funds to offset the unexpected fuel costs or to put toward a new Hyundai or Kia vehicle. Read more at Hybrid Cars. BMW dealers are awaiting details on new dealership standards - and BMW i8 models for their showroom floors. According to BMW National Dealer Forum Chairman Steve Late, BMW dealers are anxiously waiting to see what sort of updates they'll need to do to get in line with BMW's Future Retail 2016 program. As for the new EVs, Late says that the BMW i3 sales were slow to start, but that once people learned more about it, "wham, bam, it is taking off." The i8 shortage is a bigger problem: "I was allocated three for 2014, and I have a waiting list of 47 people. This year, maybe I will get eight or 10, and I still won't be able to fulfill them." Still, Late says he won't sell the cars at an upcharge. Read more at Automotive News. Opel is reportedly planning an electric version of its Karl hatchback. According to German automotive magazine Autobild, Opel will begin selling the diminutive Karl EV by the end of 2018. The electric car will offer a driving range of about 93 miles. The gasoline-powered version is expected to begin deliveries this June. Read more at Automotive News Europe. PSA Peugeot Citroen says it will keep its Hybrid Air program alive as it looks for a cost-sharing partner. Hybrid Air technology uses a compressed air hybrid system to improve fuel economy as we saw in the Peugeot 208 Hybrid Air concept. A French newspaper reported that Hybrid Air won't make it to commercialization, and that the program's team of engineers has been reduced. A PSA spokesperson confirms the change to the program, saying, "We are now waiting for another partner to help us begin the production stage." Read more at Automotive News Europe. Related Video:

Hyundai-Kia dealer offers $180k in gift cards to local residents

In many smaller communities, auto dealers are often major players in the local business and political world, and they interact with large portions of the population. Now, Grand West Hyundai and Grand West Kia in Grand Junction, CO, are putting their marketing dollars to work in a way to help the local economy, while also potentially generating some sales at the same time. Over the next six months, the dealers are contacting about 8,000 previous customers and offering them a gift card worth at least $50 to over 100 of the city's shops and restaurants (pictured above), according to Automotive News. All people need to do to receive the certificate is stop by the showrooms. Hopefully, the visitors would check out a new Hyundai or Kia at the same time. "We'd love to sell them a new car, but it is really a customer-appreciation gesture," said Ken Reeher, the dealers' marketing manager, to Automotive News. The two stores already bought about 3,600 cards with $181,000 going into the local economy. Paying people to come to the showroom isn't really new but generally works well. The Colorado dealers expect around half of the people they contact to visit for the gift card, which is still significantly more foot traffic than from traditional mailings. The decision to keep the cards local also means more money goes to small businesses, and the move gains goodwill in the community, too. News Source: Automotive News - sub. req.Image Credit: Aaron Hoffman Marketing/Advertising Hyundai Kia Car Buying Car Dealers colorado

Lexus NX, BMW i3 to get Super Bowl commercials

At this point last year, we'd been getting news on automotive-focused Super Bowl commercials for more than two months. The teasers hadn't come out yet, but manufacturers lined up for the super-expensive spots were making their intentions known. This year? Almost nada, until this week. BMW has said it will air a 60-second spot promoting the i3 during the first quarter of the game, the Munich firm returning to The Big Game after a four-year absence. BMW says, "Big ideas like the BMW i3 take a little getting used to, and the creative idea surrounding our spot will play on this analogy." We say that pitching a tiny range-extended hatchback during the beer-iest American sports orgy of the year should make for some neat commentary afterward. Lexus is putting its new NX crossover in the second Super Bowl commercial it's ever aired, eschewing the glitter of celebrities and glamor for a straight-shooting spot and the tagline, "Be seen, be heard, make some noise." Joining those two are Kia, Mercedes-Benz, Nissan and Toyota. The six confirmed carmakers are down from eleven last year, when car spots made up a quarter of the total ad time. The price to do business for 30 seconds this year: reportedly around $4.5 million, up a stacks from last year's $4 million. You can watch the Lexus commercial in the video above, and beneath that, the BMW press release below has a bit more information on its effort. BMW to Advertise All-Electric BMW i3 during Super Bowl XLIX. The all-electric BMW i3 is featured in a 60-second spot during Super Bowl XLIX on Sunday, February 1, 2015. Woodcliff Lake, NJ – January 15, 2015... Today, BMW announced plans to feature the all-electric BMW i3 in a 60-second spot during Super Bowl XLIX on Sunday, February 1, 2015. After a 4-year hiatus, BMW will be returning to the big game with a commercial during the first quarter. "As one in three Americans will tune in to watch the Super Bowl, we are thrilled to use this platform to educate viewers on the importance of electric mobility," said Trudy Hardy, Vice President of Marketing, BMW of North America. "Big ideas like the BMW i3 take a little getting used to, and the creative idea surrounding our spot will play on this analogy." BMW i is BMW's forward-looking and sustainable brand dedicated to solving many of the mobility challenges faced by the world's most densely populated cities. The BMW i3 is the first of the BMW i vehicles constructed from the ground up primarily of carbon fiber.

Lower gas prices mean there are excellent deals on green cars right now

The phenomenon was big enough to make news in 2006, then in 2008, in 2011, in 2012, in 2013, and again last year: a big move in gas prices means a big move in alternative-fuel-vehicle sales. True Car's TrueSavings report, which averages transaction prices across the country to figure out what people are paying compared to MSRP, shows that electric cars and hybrids are ripe for excellent savings right now. The Ford Focus Electric presents the greatest disparity, with the average transaction price of $25,168 representing a 16.1-percent saving off its $29,995 MSRP. The Kia Optima Hybrid and Toyota Prius also snagged spots in the top five, with the Kia offering a 10.7-percent discount and the Toyota a 10.1-percent discount. One hybrid managed to show up among the top five lease offers, too: the Lincoln MKZ Hybrid is just $315 a month for 36 months after $3,875 down in some markets. Alt-energy vehicles got bumped out of the top five finance deals, however. That was dominated by light trucks and, oddly, two subcompacts. The press release below has more details. TrueCar finds hybrids, EVs top list of best savings in January Gasoline price plunge = savings for consumers on alternative fuel vehicles SANTA MONICA, Calif., Jan. 15, 2015 /PRNewswire/ -- Ford's Focus Electric hatchback, which sells at an average of 16 percent off MSRP, tops January's list of best savings on new vehicles, according to TrueCar, Inc. (NASDAQ: TRUE), the negotiation-free car buying and selling platform. The "TrueSavings" monthly report analyzes current transaction prices and identifies opportunities for consumer savings. "Fuel savings are not top of mind to many consumers right now, and that makes this a great time to buy a hybrid or electric vehicle," said John Krafcik, president of TrueCar. "With gasoline prices now averaging just $2.10 per gallon, and vehicle preferences tied so closely to short-term gasoline prices, automakers are heavily discounting their most fuel-efficient cars to clear inventories." Toyota's Prius, the world's best-selling alternative fuel vehicle for more than a decade, also makes January's list of best savings. Customers who purchase a Prius Two model this month can save 10 percent off the hybrid car's $25,025 MSRP. "Gasoline prices and vehicle type preferences are strongly related, and this relationship is cyclical in nature," said Krafcik.

Kia spotted testing new 2016 Sportage in Germany

Though the first-generation Kia Sportage stuck around for a whopping eleven years, its successor was on the market for six years before the current model was introduced in 2010. At that rate, Kia is likely to reveal the fourth-gen model some time next year, and that is precisely what we seem to have here in this latest batch of spy shots. Spotted undergoing testing at the Hyundai-Kia Technical Center in Russelsheim, Germany, this pair of Sportage prototypes are wearing a lot of camouflage to keep us from extrapolating too much about their design. Still, we're expecting much of the KX3 concept to make it onto the production Sportage as Kia moves its crossover design language in one direction and the sedans in another. Look for a wider, lower grille, wrap-around headlamps and more prominent fog lights to characterize the front end, new LED taillights around back and a silhouette similar to the current model's in between. Expect a range of gasoline and diesel engines to be offered in markets around the world, from 130 horsepower up to 250, mated to a seven-speed dual-clutch transmission. Equipment can be anticipated to be upgraded inside as well, bringing to bear the resources of what has become one of the world's largest automakers. Featured Gallery 2016 Kia Sportage: Spy Shots Image Credit: CarPix Spy Photos Kia Crossover kia sportage

Kia recalling 96k Souls with sunroofs [UPDATE]

UPDATE: A previous version of this post indicated that the recall affected 2010-2014 models, when the recall ends with 2013 models. The text below has been revised accordingly. Kia has issued a recall for the 2010-2013 model-year Soul compact cars. But while the notice issued by the National Highway Traffic Safety Administration covers a long period of production – from January 8, 2009, to October 2, 2013 – the problem only affects those units equipped with a sunroof. In those specific models – of which Kia estimates there are 95,314 examples in the United States – the headliner plate surrounding the sunroof may detach when the side curtain airbag is deployed, which could serve to compound the risk of injury in the event of a crash. Owners of affected vehicles can expect to hear from the manufacturer to bring their Souls in to their local dealer to have industrial adhesive strips installed to secure the headliner in place, starting from early February. RECALL Subject : Headliner Plate Detachment Report Receipt Date: DEC 29, 2014 NHTSA Campaign Number: 14V822000 Component(s): STRUCTURE Potential Number of Units Affected: 95,314 Manufacturer: Kia Motors America SUMMARY: Kia Motors America (Kia) is recalling certain model year 2010-2013 Kia Soul vehicles manufactured January 8, 2009, to October 2, 2013, equipped with a sun roof. A headliner plate may detach during deployment of the curtain air bag. CONSEQUENCE: A detached headliner plate may increase the risk of injury to the occupant during a vehicle crash. REMEDY: Kia will notify owners, and dealers will install industrial adhesive strips to secure the headliner plates, free of charge. The recall is expected to begin February 2, 2015. Owners may contact Kia customer service at 1-949-468-4800. Kia's number for this recall is SC112. 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.

Hyundai promoting younger execs in bid to 'smoothen an eventual leadership succession'

Experience versus the next generation. It's the decision any organization has to make when it comes to its succession of leadership. But even companies that value wisdom over vitality will eventually have to hand the reins to a new generation of leaders. And that seems to be what the Hyundai Motor Group is preparing for. The Korean automaker has promoted three executives in their early 50s to the rank of Executive Vice President. Chief marketing officer Cho Won-hong (50), PR chief Kong Young-woon (50) and Kim Gyun (52), head of strategic planning at Kia, are all being promoted to the role, putting them in senior leadership positions at one of the world's largest automakers. Reuters frames the promotions as earmarked to "smoothen an eventual leadership succession" at Hyundai. The family-owned company is currently chaired by Chung Mong-koo (76), who has given little indication that he's preparing to step down in the near future. But when he does, he's widely expected to relinquish control to his only son, current vice-chairman and former Kia president Chung Eui-sun (44, pictured), who is said to have chosen the aforementioned US-educated Cho for the promotion. News Source: ReutersImage Credit: SAMUEL KUBANI/AFP/Getty Hirings/Firings/Layoffs Hyundai Kia

Dan Neil pokes fun at the celeb cars of 2014

Look, we try really hard not to pay any attention to the Kardashians and their vapid reality TV empire. But, as troubling as that brood may be, occasionally we're impressed and/or horrified by their four-wheeled conveyances. In fact, that curiosity extends beyond talentless reality stars with rotund glutes to celebs in general. That's why we're enjoying Dan Neil's sometimes biting take on the celebrity cars of 2014. Besides paying tribute to Kim K, husband Kanye West and the adorable Lamborghini that their spawn rides about in, Neil also takes a look at LeBron James' turn as a Kia spokesman and boxer Floyd Mayweather's trio of Bugatti Veyrons. Matthew McConaughey is a focus of Neil's as well, thanks to his oft-panned advertisements for Lincoln (and the raucous parodies they inspired), before finishing on the high, with Jerry Seinfeld and his new Porsche 918 Spyder. Take a look at Neil's recap of the celebrity cars of 2014. News Source: The Wall Street Journal Celebrities Humor Bugatti Kia Lamborghini Lincoln Porsche Videos porsche 918 spyder celebrity dan neil

Hyundai poaches BMW M engineering chief to lead new performance division

The Hyundai Motor Group may be getting more serious about its performance credentials, but in order to realize its goal of making more serious performance machinery, it's going to need the expertise to get there. Fortunately that's just what it's acquired in hiring Albert Biermann. The former chief engineer at BMW M GmbH, Biermann has been working for the Bavarian automaker for over three decades now, and since his appointment as Vice President of Engineering at the M division, was most recently responsible for developing the latest M3, M4 and M6 – not to mention bridging the gap between BMW's standard models and its M lineup with the M Performance range. But now the 57-year-old German has been named the Korean group's new head of Vehicle Test & High Performance Development. In his new job, Biermann will be based out of Hyundai's R&D center in Namyang, South Korea, and will be tasked with "the development of new high performance Hyundai and Kia models" while also working to improve the two brands' ride, handling, safety, reliability and NVH reductions. The appointment makes Biermann the second high-ranking German executive the Korean automaker brought on board, after chief designer Peter Schreyer. Although Hyundai recently shut down its US racing program with Rhys Millen Racing, it has embarked on an ambitious assault of the World Rally Championship, and recently opened a test center at the Nurburgring with an eye towards launching a new N performance line that sounds like it'll be right up Biermann's alley. News Source: Hyundai Hirings/Firings/Layoffs Hyundai Kia Performance Hyundai N albert biermann

A car writer's year in new vehicles [w/video]

Christmas is only a week away. The New Year is just around the corner. As 2014 draws to a close, I'm not the only one taking stock of the year that's we're almost shut of. Depending on who you are or what you do, the end of the year can bring to mind tax bills, school semesters or scheduling dental appointments. For me, for the last eight or nine years, at least a small part of this transitory time is occupied with recalling the cars I've driven over the preceding 12 months. Since I started writing about and reviewing cars in 2006, I've done an uneven job of tracking every vehicle I've been in, each year. Last year I made a resolution to be better about it, and the result is a spreadsheet with model names, dates, notes and some basic facts and figures. Armed with this basic data and a yen for year-end stories, I figured it would be interesting to parse the figures and quantify my year in cars in a way I'd never done before. The results are, well, they're a little bizarre, honestly. And I think they'll affect how I approach this gig in 2015. {C} My tally for the year is 68 cars, as of this writing. Before the calendar flips to 2015 it'll be as high as 73. Let me give you a tiny bit of background about how automotive journalists typically get cars to test. There are basically two pools of vehicles I drive on a regular basis: media fleet vehicles and those available on "first drive" programs. The latter group is pretty self-explanatory. Journalists are gathered in one location (sometimes local, sometimes far-flung) with a new model(s), there's usually a day of driving, then we report back to you with our impressions. Media fleet vehicles are different. These are distributed to publications and individual journalists far and wide, and the test period goes from a few days to a week or more. Whereas first drives almost always result in a piece of review content, fleet loans only sometimes do. Other times they serve to give context about brands, segments, technology and the like, to editors and writers. So, adding up the loans I've had out of the press fleet and things I've driven at events, my tally for the year is 68 cars, as of this writing. Before the calendar flips to 2015, it'll be as high as 73. At one of the buff books like Car and Driver or Motor Trend, reviewers might rotate through five cars a week, or more. I know that number sounds high, but as best I can tell, it's pretty average for the full-time professionals in this business.