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Posts Tagged ‘false mileage’

Ford to Re-State Fuel Economy as EPA Preps Revised Mileage Testing

Maker to acknowledge gap between sticker and real-world numbers.

by on Aug.15, 2013

Ford is about to re-state the fuel economy rating on C-Max Hybrid - and the EPA may follow with changes in its own testing and labeling procedures.

Ford Motor Co. will announce significant revisions to the fuel economy rating of its C-Max Hybrid later today, an estimated 10% reduction reflecting the gap between what has been posted on the “people-mover’s” window sticker and what most buyers are getting in real-world use.

Ford has been taking some hits for the fuel economy ratings of several vehicles, especially hybrid models, and now faces several lawsuits from disgruntled owners. But it is far from alone. A number of makers have been criticized – and occasionally sued – for what critics have called unrealistic and overly optimistic ratings.

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Manufacturers like Ford, in turn, have pointed the finger back at the Environmental Protection Administration, the federal agency overseeing mileage testing and approved mpg ratings. The EPA is expected to follow Ford’s lead by announcing on Friday that it will revise the way it determines fuel economy for vehicles – particularly hybrids, which frequently deliver lower real-world numbers than motorists were led to expect. (more…)

False MPG Claims Could Cost Hyundai/Kia $100 Mil

Lawsuits, fines, customer reimbursements will add up big.

by on Nov.07, 2012

Hyundai CEO John Krafcik will have to start digging into his corporate pockets.

Forced to restate mileage claims after a government audit, Hyundai and its Korean sibling Kia could be in a world of financial hurt – even as they struggle to overcome the potential damage to their image which, in recent years, has put an emphasis on delivering industry benchmark fuel economy.

With several lawsuits already filed and more likely, Moody’s Investors Service has warned that the ultimate cost to the two brands could reach $100 million in the U.S.  While other analysts aren’t ready to embrace that specific number, there is clear consensus the damage may be costly and long-lasting.

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Together, Hyundai and Kia “will incur additional annual costs of about $100 million until the affected models are largely scrapped,” warned the ratings agency in a new report.  It also noted that despite the size of that figure, it comes to less than 1% of the Korean maker’s total earnings.

(more…)