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Posts Tagged ‘kia fuel economy’

Hyundai Settles Lawsuits Over False Mileage Claims

Kia also expected to settle.

by on Feb.27, 2013

The Hyundai Elantra was one of the vehicles for which Hyundai had to restate mileage.

Hyundai has agreed to a settlement ending an embarrassing episode triggered by the revelation the maker had overstated its fuel economy numbers.

Sibling Korean brand Kia also is expected to reach an agreement over similar claims. The two makers last November acknowledged inflating the mileage claims for 13 models by as much as six miles per gallon.

While not all details have been released, Hyundai apparently has agreed to offer owners of vehicles covered by the lawsuits to take a lump-sum payment covering the additional costs they can expect to incur as a result of lower-than-expected mileage.

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After confirming it had misstated its fuel economy and quickly apologizing, Hyundai – and Kia – last year offered to reimburse owners on an annual basis, adding another 15% for “goodwill.” But that approach would have required motorists to go to a dealer each year to have their odometers checked.

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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.

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EPA May Expand Probe After False Hyundai/Kia Mileage Claims

But even mpg numbers that meet regs could be exaggerated, industry insiders concede.

by on Nov.05, 2012

Those Kia Hamsters apparently fudged the mileage numbers on the Soul and other models.

Watch TV for more than an hour in prime time; pick up a newspaper or magazine; or check the ads that pop up while you’re searching the web.  Odds are you’re bombarded with ads pitching the latest fuel economy numbers from one manufacturer or another.

“Mileage has become the number one concern of American motorists,” Ford Chief Operating Officer Mark Fields noted earlier this year.

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But are those numbers valid? That’s the question motorists – and regulators – are left wondering in the wake of the revelation, last week, that Korean makers Hyundai and Kia had inflated their own mileage figures by as much as 6 mpg on 13 separate models. The Environmental Protection Agency is apparently getting ready to review other makers’ mileage claims. Meanwhile, even numbers that meet government scrutiny are coming under question because of the way the industry is promoting mileage in advertising.

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Hyundai and Kia Admit Overstating Fuel Economy

Gap of up to 6 mpg will brings fines, could lead to lawsuits.

by on Nov.02, 2012

Kia overstated the mileage of its Soul by 6 mpg, according to the EPA.

The two major Korean automakers operating in the U.S. have acknowledged overstating the fuel economy delivered by vehicles like the Hyundai Elantra and Kia Sorrento by as much as six miles per gallon.

Discovered during a routine audit by the Environmental Protection Agency, the makers will now face government sanctions that could add up to millions of dollars in fines.  They have promised to refund money to buyers but also could face the same lawsuits other makers have been hit with after promoting inaccurate mileage or performance numbers.

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“Consumers rely on the window sticker to help make informed choices about the cars they buy,” said Gina McCarthy, assistant administrator of the EPA’s air-quality office. “EPA’s investigation will help protect consumers and ensure a level playing field among automakers.”

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