2012-2013 Scion iQ Recalled
Toyota is conducting a voluntary safety recall of certain 2012 and early 2013 Scion iQ passenger cars for potentially flaw in the safety system involving passenger airbags.
A total of 11,200 Scion iQ hatchbacks are involved in the Toyota recall.
The problem
According to the automaker, the issue centers on a cable that can be damaged as the passenger seat is adjusted fore and aft. The cable is part of the front passenger Occupant Classification System (OCS) that senses whether the front passenger seat is occupied, and enables airbag deployment and seatbelt pre-tensioning in the event of an accident.
If the sensor becomes damaged, the airbag may not deploy as they should and the seatbelt pre-tensioners may not become activated.
Toyota said that no crashes or injuries have been reported for this condition and no other Toyota, Lexus or Scion vehicles are involved.
What Toyota will do
Toyota will notify owners of affected 2012-2013 Scion iQ passenger cars by first-class mail in early December, instructing them to take their cars to a Toyota dealership for inspection of the cables and installation of new protective sensor covers.
The procedure should take approximately one hour, depending on the dealer’s work schedule.
Owners of Scion iQ cars involved in the voluntary safety recall with any questions or concerns may contact Scion Customer Experience at 1-866-707-2466. Or, visit www.toyota.com/recall.
This story originally appeared at The Car Connection
2013 Ford Fusion Earns IIHS Top Safety Pick Award
The 2013 Ford Fusion mid-size sedan just received the Top Safety Pick Award from the Insurance Institute for Highway Safety (IIHS). The criteria for earning the designation include receiving “Good” ratings in offset frontal impact, side impact, side impact dynamic head restraint and roof strength testing.
Passing the IIHS’s roof strength test requires that the roof withstand a force that is equal to four times its weight before it caves in five inches. The 2013 Fusion, according to the IIHS, can withstand 5.14 times its own weight.
2013 Fusion safety technology
Ford says the redesigned Fusion’s features safety benefits from its Personal Safety System, new seatbelt technologies, eight standard airbags, and redesigned seat-mounted side airbags that deploy lower in the pelvis area and chest, taking into account the size of the occupant.
The 2013 Fusion also offers numerous driver-assist technologies, including:
- Blind-Spot Information System (BLIS) with cross-traffic alert
- Active park assist, for easier parallel parking
- Lane Keeping Assist
- Lane Keeping Aid
- Driver Monitoring
- Adaptive cruise control
- Rearview camera
- Front/rear park aids
- Hill start assist
- Electronic parking brake
The previous generation Fusion was also a Top Safety Pick award winner.
As for the competition in the mid-size family cars category, the 2013 Chevrolet Malibu has already been designated a Top Safety Pick, while the 2013 Nissan Altima and 2013 Honda Accord have yet to be rated by the IIHS.
This story originally appeared at The Car Connection
Hyundai, Kia Owners Seek $775 Million Over Fuel Economy Fibs
Less than a week after the Environmental Protection Agency announced that not one, not two, but 13 Hyundai and Kia models failed to meet their advertised fuel-economy ratings, a class-action lawsuit has been filed against the two Korean automakers.
According to Reuters, the suit -- which hasn't officially been granted class-action status yet -- was filed in the U.S. District Court for Central California. The plaintiffs are 23 Hyundai and Kia owners who seek $775 million in damages.
There's more where that came from
Technically, this is the third lawsuit targeting Hyundai and Kia for inaccurate fuel-efficiency claims.
Another was filed in Ohio earlier this week on behalf of three plaintiffs: one Ohio resident who purchased a 2012 Kia Rio, and a Canadian couple who now own a 2013 Hyundai Elantra. That lawsuit doesn't appear to seek class-action status, but it does ask for $5 million in damages.
And back in July, the consumer watchdog group aptly named Consumer Watchdog filed a lawsuit asking for unspecified damages on behalf of one Hyundai Elantra owner in Sacramento, California. That suit did seek class-action status, though there's no indication that's been granted.
Hyundai and Kia spokespersons have declined to comment on the new lawsuit. However, in response to the Ohio case, Hyundai's Chris Hosford said earlier this week that the automaker's proposed reimbursement program (detailed here) is the fastest and most customer-friendly way to resolve the issue.
If successful, this latest lawsuit could dramatically increase Hyundai and Kia's cost of resolving these fuel-efficiency misstatements. As we discussed on Friday, annual compensation for the 900,000 U.S. vehicles affected is conservatively estimated at $80 million -- an expenditure that will continue for as long as owners retain those vehicles.
However, Moody's Investor's Service suggests that the reimbursement plan should run closer to $100 million per year (though that figure may include an additional 172,000 Hyundai and Kia vehicles sold in Canada).
If class-action status is granted in this latest case, that would reduce Hyundai and Kia's annual burden, but the upfront cost of payouts would be enormous. And of course, not every Hyundai and Kia owner is likely to sign onto the lawsuit, meaning that if the suits prevail in court, the automakers will be making payouts on both fronts.
What's next?
- If you own one of the 13 affected models -- the Hyundai Accent, Azera, Elantra, Genesis, Santa Fe, Sonata Hybrid, Tucson, or Veloster, or the Kia Optima Hybrid, Rio, Sorento, Soul, or Sportage -- and you want to take part in one of the two class-action lawsuits, sit tight. Should either reach that stage, you'll likely receive something in the mail from the plaintiffs' law firm.
- If you own one of those models and aren't interested in the lawsuits, you can visit HyundaiMPGInfo.com or KiaMPGInfo.com to start the ball rolling on your compensation claim.
- If you own a different Hyundai or Kia vehicle, be patient. The EPA will likely conduct audits on other models soon, and who knows what they'll turn up?
- Last but not least, if you're shopping for a new car and have your eye on a Hyundai or Kia, Hyundai's John Krafcik says that window stickers on showroom vehicles have been amended to reflect accurate fuel economy stats. Well, at least for the 13 models included in the EPA's first audit.
If you've bought a Hyundai or Kia in the past three years -- especially one of the models included in the EPA audit -- share your thoughts and plans below.
This story originally appeared at The Car Connection
Used Car Prices Tick Up After Sandy, But Beware Of Flooded Finds
The effects of Hurricane Sandy are far bigger than many imagined. The storm reshaped communities, and some will argue that it changed the outcome of yesterday's election.
Sandy will also have a small but important impact on used-car values. As proof, the National Automobile Dealers Association points to Hurricane Katrina, which destroyed hundreds of thousands of vehicles along the Gulf Coast -- vehicles that subsequently had to be replaced. That simultaneous loss of supply and growth in demand led to a 3% rise in used car prices after Katrina made landfall in August 2005.
Sandy was a different storm, and as such, it had a different impact. And although the total damage wrought by Sandy won't equal that of Katrina, NADA expects used vehicle values to climb slightly for the next few months -- especially in the Northeast, where Sandy made landfall.
That's notable because used-car values are already sky high, particularly for fuel-efficient models. Whether insurance companies will take those factors into account when issuing settlements remains to be seen.
Unfortunately, disputing such discrepancies is difficult, and the appeals process varies from provider to provider. You have far more control, however, over the replacement vehicle you select. And if you're looking for a used vehicle in the next few months, we encourage you to be very careful.
- If possible, start your search with a reputable dealer. We know that there are plenty of honest folks out there trying to sell their used vehicles in classified sections, but a dealership offers an extra layer of protection for buyers.
- Before you buy, make a very full inspection of the car. Keep in mind that any flooded vehicle has probably been given a thorough cleaning, so obvious signs of damage -- like water lines in the trunk -- will likely have been removed.
- There may be other red flags, though. Engine compartments are harder to clean, and if the flooding was severe enough, it might've left water marks there. Also check under the seats for rusted bolts and springs. There would be little way to explain that kind of damage apart from prolonged contact with water. And take a Claritin beforehand so you can sniff freely: even professional cleaners have a hard time getting rid of mold and mildew.
- Take the car for an inspection. Most mechanics, garages, and even oil-change shops offer this service for a reasonable fee. They'll be able to spot problem signs you might miss.
- Ask for a damage report from Carfax, AutoCheck, or a similar service. Keep in mind, however, that such reports won't do much good if damage was never reported to an insurer and the owner made repairs herself.
- Above all, don't think you're immune just because you don't live in the affected area. After Katrina, damaged vehicles showed up in lots and driveways across the country. It can happen anywhere.
Have you been been the victim of a flooded-car scam? What tipped you off to the fact that there was a problem? Share your story in the comments below.
This story originally appeared at The Car Connection
Suzuki Shuts Down U.S. Auto Sales, Files For Bankruptcy
On a day that's likely to have many shocking twists and turns for Americans, here's some news that will surprise absolutely no one: Suzuki is exiting the U.S. auto market.
According to Reuters, the Japanese company said earlier today that its auto division will file for bankruptcy in California, where U.S. operations are based. Suzuki will continue to sell cars, trucks, and crossovers in other parts of the world, but in America, it will refocus its energies on ATVs, boats, and motorcycles.
What took so long?
In all honesty, we've been expecting this announcement for some time. Suzuki is one of the few automakers in the booming U.S. auto market that has failed to realize year-over-year gains. As of October 31, Suzuki had sold 21,188 vehicles, 4.7% below 2011.
That's largely because Suzuki vehicles have failed to catch on with American drivers. You can blame their design, which has often seemed quirky. Or you could blame the build quality, which hasn't always lived up to the standards set by Suzuki's detail-oriented Japanese colleagues. But even the Kizashi -- arguably the best Suzuki ever introduced in this market -- didn't stand out.
Of course, there were other factors. The strong yen has created huge problems for automakers across Japan, increasing the cost of production in that country and causing losses during currency conversion. In fact, the strong yen is one of the reasons that companies like Honda have moved more of their production stateside in recent years.
Suzuki's breakup with Volkswagen didn't help, either. If the two had toughed it out, Suzuki might've been able to tap into Volkswagen's huge U.S. operations to build new cars and reach new customers.
There were other hints of problems, too. Suzuki hasn't made an appearance at the Detroit Auto Show in some time, which is rarely a good sign for an automaker doing business in the U.S. And Suzuki's website -- at least the portion of it geared toward journalists -- has long been a source of frustration. That might simply be blamed on bad web designers, or it might be symbolic of the company's reluctance to communicate.
Not surprisingly, that site holds no mention of the shut-down of U.S. auto sales or details of what current Suzuki owners should expect in the way of warranty coverage. However, Reuters reports that Suzuki will honor those warranties during the bankruptcy proceedings.
We can only assume that Suzuki chose to make its announcement on the day of the U.S. presidential election to avoid becoming headline fodder -- a strategy that'll probably pay off.
But even if the company had waited a few days to drop the hammer, we hope it wouldn't have surprised Suzuki's U.S. workers. If it did, the good news is that the company's other units are much more robust, so perhaps many of those folks will be offered jobs with Suzuki's ATV, boat, and motorcycle operations. And if not, the rest of America's auto industry seems to be hiring.
Will you miss Suzuki? Or have you already forgotten that it did business here? And most importantly: who might be next to depart? (Looking at you, Mitsubishi.) Share your thoughts in the comments below.
This story originally appeared at The Car Connection
EPA Red-Flags Hyundai Elantra, Kia Sorento, 11 Others For Gas Mileage Ratings
The Environmental Protection Agency has revealed that Hyundai and Kia misstated fuel economy stats on 13 models from the 2011, 2012, and 2013 model years, including on best-sellers such as the Hyundai Elantra and Kia Sorento.
As a result the Korean automakers have been ordered to amend window stickers on vehicles in showrooms and to pay damages to 900,000 owners across the U.S.
The problem was raised a year ago, when Consumer Watchdog began badgering the EPA to conduct tests on the 2011 Hyundai Elantra.
Hyundai claimed that the sedan achieves 29 mpg city, 40 mpg highway, for a combined rating of 33 mpg. However, consumers and critics have complained that under real-world conditions, their best results fell in the mid-20s. Similar complaints were lodged against the 2012 Elantra.
And so, the EPA conducted an audit. The findings were not good.
In fact, the findings were poor enough that the Agency expanded its audit to other 2011, 2012, and 2013 model-year vehicles manufactured by Hyundai and its sibling, Kia. As it turns out, the Elantra's fuel economy wasn't the only figure that was overstated.
In all, discrepancies were found on 13 models, including the Hyundai Accent, Azera, Elantra, Genesis, Santa Fe, Sonata Hybrid, Tucson, and Veloster. The Kia Optima Hybrid, Rio, Sorento, Soul, and Sportage were also sold with incorrect fuel economy stats.
Penalties
According to the Associated Press, the EPA has ordered both Hyundai and Kia to amend window stickers on roughly 30 percent of the vehicles currently in showrooms. Most will change by only a mile or two. Some, like the popular Kia Soul, will lose as many six miles per gallon.
What's more, Hyundai and Kia are likely to pay some sort of restitution to over 900,000 owners who've already purchased 2011, 2012, and 2013 models. So far, the plan is to contact owners, calculate their mileage to date, and determine how much more they've spent on fuel than if the window stickers had been correct.
Kia's Michael Sprague gave the example of a vehicle with a 1-mpg difference that had 15,000 miles on the odometer. The owner of that vehicle would receive compensation in the amount of $88.03, which includes a 15-percent premium for the inconvenience.
Such payments will be made every year via debit card, for as long as the owner drives the vehicle. Multiply that $88.03 figure by 900,000, and you get a figure of $79,227,000, which is probably at the low end. That's a sizable chunk to take out of Hyundai/Kia profits.
The EPA noted that this is the first time it has uncovered such a vast number of discrepancies in fuel economy. In fact, this sort of error has only been found twice in the past 12 years -- and even then, the investigations affected just one vehicle at a time. The EPA also said that its investigation is ongoing and refused to indicate whether Hyundai and Kia might be fined or slapped with criminal charges.
Hyundai and Kia have apologized profusely for the fiasco. John Krafcik, Hyundai's CEO of American operations, insists that the problem was administrative and procedural in error, and was not intentional. Sung Hwan Cho, president of Hyundai's U.S. technical center in Michigan, said the same, noting that the mixup stemmed from the complex nature of EPA tests, which happened as the two car companies were tweaking vehicles to boost fuel economy.
For customers, past and present
If you're shopping for a new car and have your eye on a Hyundai or Kia, Krafcik says that you can breathe easy: window stickers on showroom vehicles have been amended to reflect accurate fuel economy stats.
If you already own a Hyundai or Kia, however, you should visit HyundaiMPGInfo.com or KiaMPGInfo.com to start the ball rolling on your claim.
This story originally appeared at The Car Connection
