December 17, 2018
Hyundai, Kia Sued by Owners Claiming Engine Defect Caused Fires
Hyundai Motor Co. and Kia Motors Corp. were sued by U.S. drivers over an alleged defect that could cause certain engines to catch fire, adding pressure on the South Korean automakers being probed by U.S. authorities. Bloomberg reports that more than 350 consumer complaints were reported to the U.S. National Highway Traffic Safety Administration over non-collision fires in Hyundai and Kia vehicles as result of the automakers’ “concealment of the defect,” according to the class-action lawsuit filed on Dec. 14 in the U.S. District Court for the Central District of California. The customers’ lawsuit argues that a defect restricts oil flow to core engine parts, causing premature wear and failure and eventually resulting in engine seizure and fire. Hyundai Motor declined to comment on the lawsuit specifically, but in a statement the automaker said that “nothing is more important than the safety and security of Hyundai customers,” adding that the company is cooperating with the U.S. Department of Transportation and the NHTSA. For the full story, click here.
As More Cars Plug In, Utilities and Makers Juggle Ways to Power Them
Utilities today must not only supply the huge amounts of electricity that modern car factories consume, but also fuel the increasing number of electric vehicles coming out of them. If that electricity isn’t generated with minimal carbon emissions and at a reasonable cost, the advantages of electric cars are diminished. And because most owners charge their vehicle in the early evening when they get home from work, demand peaks can be a significant problem. Thus, reports the New York Times, automakers and utilities are again working hand in hand to ensure a good supply of clean, inexpensive electricity — while developing strategies for charging that don’t overload circuits at peak periods — through improved efficiency, strategic charging, and a greater reliance on renewable energy sources. Honda and Southern California Edison have taken a step in that direction. They have developed a program, Honda SmartCharge, that helps owners charge electric vehicles when the greatest amount of renewable energy is available on the grid and when electricity prices, which can fluctuate significantly, are lowest. For more on the program, click here.
Plant closures! Subscriptions! Why should dealers upgrade?
Retailers griping about automaker dictates to upgrade dealerships is a perennial complaint. But, reports Automotive News, as those automakers close assembly plants and launch vehicle subscription models, some dealers are grumbling more loudly: Why invest in brick and mortar? Automakers are putting "extreme pressure" on dealers to spend money to align their stores to factory edicts for size and design, dealer Bob Tasca of Tasca Automotive Group in Cranston, R.I., said during a 2019 sales forecast call by the National Automobile Dealers Association last week. "Why are we spending all this money on facilities when the factory is working hard at eliminating us?" Tasca said. "They are making it easier and easier for the customer to not to have to come to the dealerships." He specifically cited vehicle subscription programs that many automakers have launched. Though the details of those programs vary, some retailers worry they will be cut out of the transactions. For more on how some dealers view automaker requests to upgrade, click here.
The Fall of the House of Ghosn
Not everybody at Nissan was happy with their rock-star chairman, Carlos Ghosn. And his high-living ways gave the company ammunition to take him down. As an example, click here to see the Wall Street Journal’s photo of his rose-colored mansion in one of Beirut’s most expensive neighborhoods. Its walls were adorned with portraits of the automobile titan, who with his second wife had personally supervised the $15 million purchase and renovation of the property, people close to Mr. Ghosn say. Two ancient sarcophagi, unearthed during the remodeling, were visible through a glass floor leading to a wine cellar. Earlier this year, a team of Nissan Motor Co. executives working without Mr. Ghosn’s knowledge discovered that the Beirut house and other properties had actually been purchased by Nissan, using a network of shell companies. The discovery of Nissan’s role in financing Mr. Ghosn’s jet-setting lifestyle ignited a powder keg of frustration and discontent that had long been building—and may have pre-empted a plan by Mr. Ghosn to move against management at the company himself. For the full story, and more photos, click here.
Cars and SUVS That Are Most Likely to Have Year-End Deals
Matching his and hers cars topped with satin bows may be a bigger fairy tale of Christmas than “Grandma Got Run Over by a Reindeer,” but the end of the year is a good time to shop for deals, and according to the Detroit Free Press, some pretty good used cars may be among the best this month. Late-model BMW 3-series, for instance. A study by iseecars.com, a car-buying research site with data on millions of vehicles, predicts that more than half of 1- to 5-year-old 3-series sold this month will go for at least 5 percent below their market value. The website analyzed 2.4 million car sales from 2015 through 2017 to determine vehicles’ market price and make the predictions. Click here for the full study on best year-end used car deals. The vehicles second and third most likely to be deals are the Ford Fiesta and Focus. No surprise there, since cars are selling slowly and Ford is dropping both models. For more on year-end sales, including the metro areas with the best deals, click here.
Around the Web
Lincoln Continental Brings Back Suicide Doors with Coach Door Edition [Auto Blog]
Infiniti Teases Electric SUV Destined for Detroit Debut [TTAC]
Ask For A Gorgeous Zagato-bodied Ferrari For Christmas, You're Worth It [Jalopnik]
Audi's Santa Has Midlife Crisis, Sheds Pounds to Fit in a Sports Car [Ad Age]
