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Hyundai, Kia Vow to Raise Fuel Economy 25 Percent by 2020

Motor Trend logo Motor Trend 11/6/2014 Kelly Pleskot
2011-hyundai-elantra-1024x640© Provided by MotorTrend 2011-hyundai-elantra-1024x640

Hyundai and Kia plan to boost fuel economy of their vehicles 25 percent by the end of the decade, according to a report from Reuters.

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"In the first half of this year, [Hyundai Motor] group chairman Chung Mong-koo ordered to secure world-leading competitiveness in fuel economy by 2020," the automaker said in a statement.

By developing new engines and transmissions and reducing vehicle weight, Hyundai and Kia hope to meet strict new emissions regulations in the U.S., South Korea, and Europe. The automakers will replace 70 percent of their gas and diesel engines with new engines, including turbocharged units. High-strength steel from the company's steel-making affiliate Hyundai steel will help future vehicles be much lighter than current models.

The automakers will introduce a plug-in Sonata next year as well as an all-new compact hybrid. These new offerings will help the brands stay competitive against rivals with a number of diesels and hybrids on the market worldwide.

The announcement comes right after Hyundai and Kia officially resolved an investigation into misstated fuel economy ratings back in 2012. At the time, Hyundai and Kia lowered fuel economy numbers on about 1.2 million cars and then created a compensation program to repay customers for the incorrect mileage. Just this week, the automaker paid $100 million to settle a federal lawsuit, marking the largest fine ever issued by the EPA under the Clean Air Act. In addition, Hyundai and Kia will forgo 4.7 million greenhouse credits, valued at $200 million, and spend $50 million to prevent future violations.

Source: Reuters

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