Hyundai, Kia Aim for 25% Fuel Economy Boost by 2020

Hyundai Motor Co. and its Kia Motors Corp. affiliate are vowing to improve their fleet average fuel economy 25% in six years.

The declaration comes four days after the companies agreed to pay a combined $350 million in fines and penalties for overstating the fuel economy ratings of cars they sell in the U.S.

Hyundai-Kia say they can't state exact targets because averages will vary by country depending upon the models offered and their sales mix.

The companies intend to boost average efficiency by reducing vehicle weight, introducing new transmissions and replacing seven of their 10 gasoline and diesel engines with more efficient next-generation designs. The companies also plan to expand their use of turbocharging and introduce more hybrid, plug-in hybrid and electric models, including at least one fuel-cell-powered vehicle.

One source tells the Korea Herald the companies have targeted efficiency improvements of 11%-13% for their gasoline engines and 16%-18% for diesels. They expect advanced transmissions to contribute 2%-9%.

By 2018, the companies plan to expand their use of high-tensile steel to 48%-62% from today's 33%-52% range.