Hyundai Motor America CEO John Krafcik says the auto maker will and won't be meeting its bold prediction of a 50-mpg (4.7 L/100-km) fleet fuel economy by 2025

Huh? The distinction lies in the difference between corporate average fuel economy and Environmental Protection Agency fuel-economy methodologies.

While Hyundai still plans to achieve a 50-mpg CAFE by 2025, that figure, as are all CAFE numbers, is based on laboratory testing, not real-world results, he says.

Factoring in EPA adjustments for things such as wind drag and how people drive their cars in the real world, Krafcik says Hyundai's 2025 number actually is 37 mpg (6.4 L/100 km).

The gulf between CAFE and EPA fuel economy sprang up in the mid-1980s, when the government decided to adjust window-label fuel-economy ratings, taking city mpg down 10% and highway down 22%, based on consumer complaints the CAFE figures were unachievable.

In 2008, EPA label values were further adjusted, hitting more realistic fuel-economy numbers.

“The thing I hope sticks for people is 50 mpg CAFE equals 37 mpg on your window label combined city/highway,” Krafcik tells media at Hyundai's North American research and development headquarters in Superior Township, MI.

Hyundai has been bullish on improving its U.S. fleet fuel economy and details a variety of ways it plans to achieve more stringent CAFE regulations.

In the near term, Hyundai has two new small engines due in the U.S. market: a 1.8L 4-cyl. and 1.6L 4-cyl.

The 1.8L, called the Nu engine, will be standard in the next-generation Elantra sedan. With this engine, Hyundai predicts Elantra's fuel economy will rise to an EPA estimated 29/40 mpg city/highway (8.1-5.9 L/100 km), across all trim lines.

Also coming soon is a 1.6L Gamma direct-injection 4-cyl. Anticipated in an upcoming small sports car, the Gamma is expected to make 138 hp and 123 lb.-ft. (167 Nm) of torque. It will be mated to Hyundai's 6-speed dry dual-clutch transmission.