Hyundai-Kia agrees to pay US$100 million for fuel efficiency exaggeration

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Hyundai-Kia agrees to pay $100 million for fuel efficiency exaggeration
By Digital Content

WASHINGTON, Nov 4 (Yonhap) -- The Hyundai-Kia Automotive Group has agreed to pay US$100 million for exaggerating fuel efficiency for more than a million cars sold in the United States, officials said Monday.

The South Korea automakers have been under investigation by the U.S. Environmental Protection Agency (EPA) over allegations that they overstated fuel economy for about 1.2 million cars spanning 13 models from the 2011 to 2013 model years.

The automakers also agreed to give up 4.75 million greenhouse gas emission credits worth about $200 million, which could have been sold to other automakers, and invest $50 million to improve efforts to certify future mileage claims, officials said.

The $100 million fine is the largest civil penalty ever secured under the Clean Air Act.

"This will send a strong message that cheating is not profitable and that any company that violates the law will be held to account," Attorney General Eric Holder said at a press conference to announce the settlement. He also called it "historic."

"This unprecedented resolution underscores the Justice Department's firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law," he said.

Cynthia Giles, assistant administrator of the EPA, also said that the penalty's scale "reinforces our commitment to level the playing field for automakers that play by the rules."

After allegations surfaced of fuel efficiency inflation in late 2012, the automakers voluntarily adjusted their fuel economy ratings for about one-quarter of their 2011-2013 model vehicles, reducing their combined fuel economy by one to two miles per gallon.

They also took steps to compensate customers for additional fuel costs associated with the rating change.

"Hyundai has acted transparently, reimbursed affected customers and fully cooperated with the EPA throughout the course of its investigation," said David Zuchowski, president and CEO of Hyundai Motor America. "We are pleased to put this behind us, and gratified that even with our adjusted fuel economy ratings, Hyundai continues to lead the automotive industry in fuel efficiency and environmental performance." (Yonhap)


-- TNA 2014-11-04

[kinmaew]

Hyundai is the most annoying car adverts because they are so prolific in all media same as a local carpet company in my country. When ads like this annoy me so much I vow never to buy their products ad execs note if you are reading or care..

[Nuddy]

It appears that Hyundai contrived to get a market advantage

I reckon $100 mill will see that advantage evened out especially with the bad publicity to go with it.

Thats a lot of dosh in any ones books.

[JacChang]

So far, out of all the car brands I've driven, Nissan's claim is spot on from the actual to the advertised. Specifically the Teana. Doesn't matter if you drive it hard or soft. Maybe cvt has a credit for this, but I am with a brand that is proud to claim the truth, instead of over boasting.

[Travelman868]

Don't you just love the USA, they have a smaller gallon than the rest of the world and a car maker is quite rightly fined.

Same as the American Bankers who caused the world financial crisis they were all jailed. Sorry they were not fined or jailed as they were

good ol American boys.

.

[rickirs]

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Don't you just love the USA, they have a smaller gallon than the rest of the world and a car maker is quite rightly fined.

Same as the American Bankers who caused the world financial crisis they were all jailed. Sorry they were not fined or jailed as they were

good ol American boys.

.

American and foreign banks have been fined by the US for billions of dollars and litigation still continues, more than you'd ever get out of an individual. There is nothing in Thailand that can compare to the scale of the justice system in the US for protection of the consumer.

[blakegeee]

What was Toyota's claim a few years back? Something along the lines of the Vigo driving from Mae Sai to Hat Yai on a single tank of fuel! It was shown on TV ALOT showing a whole convoy of Vigos doing it.

[ktm jeff]

100 million Dollars divided by the 1.2 milloin cars sold = 83 Dollars per car. Hardly a slap on the wrist , if you bought the car for its "economy" figures. Now factor in the extra cost in "extra" fuel paid for by the owners , and the added depreciation these cars will now suffer as a result of this finding , and the figure may need to be closer to 1,000 Dollars.

[freedom4life]

You can trust Korean CEOs/board members about as much as a Korean Hagwon-owner.....

[NeverSure]

100 million Dollars divided by the 1.2 milloin cars sold = 83 Dollars per car. Hardly a slap on the wrist , if you bought the car for its "economy" figures. Now factor in the extra cost in "extra" fuel paid for by the owners , and the added depreciation these cars will now suffer as a result of this finding , and the figure may need to be closer to 1,000 Dollars.

In the article it was altogether 300 million in addition to money paid for compensation to buyers. It was a big hit meant to send a message to other manufacturers as well.

Edited November 4, 2014 by NeverSure