In a bit of an ironic twist, as both Korean carmakers were recently fined for misrepresenting fuel economy figures on their vehicles, Hyundai and Kia announced that they plan to improve fuel economy on their vehicles by 25 percent by 2020.
In a statement, Hyundai (which owns Kia) said that it has received “orders” from Hyundai group chairman Chung Mong-koo to ensure that its vehicles have “world-leading competitiveness” in mileage by the year 2020. This would be done by reducing the weight of forthcoming Hyundai and Kia models, and creating new powertrains that are optimized for improved fuel economy and reduced emissions. This would be vital, as the U.S. and other major countries have launched their own emissions reforms that are stricter than previous ones.
A report from Reuters claims that Hyundai and Kia will be replacing 70 percent of their combined gas and diesel engine options, and considering turbocharging on at least some of these new engines. The use of high-strength steel from Hyundai’s steel manufacturing affiliate, on the other hand, would allow the carmakers to manufacture lighter vehicles. Also expected within the next few years is a plug-in Hyundai Sonata, and a compact hybrid, both of which should help the companies in their goal to drastically improve fuel economy figures.
Hyundai had, earlier this week, settled to the tune of $100 million, the largest fine ever levied by the Environmental Protection Agency (EPA) under its Clean Air Act. The punishment also included the forfeiture of 4.7 million worth of greenhouse credits, which adds up to an additional $200 million penalty, while the Korean companies will also pay $50 million in an effort to prevent future violations.