Hyundai,Reaches,Settlement,for car Hyundai Reaches Settlement for Overstated Fuel Economy Lawsu


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Hyundai Motor America and its affiliate Kia Motors Americahave reached a settlement with owners of more than 600,000 vehicles who havesuffered financial damages as a result of overstated fuel economy estimates.The Korean automakers had been hit with a number of class action lawsuits overthe last months stemming from inflated miles per gallon totals after announcingin November of last year that they had sold nearly 900,000 vehicles in theUnited States with incorrect ratings. A total of thirty eight cases were consolidatedinto a single case and brought before a federal court in Los Angeles, where thesettlement was finally reached.The terms of the settlement have not been made public atthis time, though one lawsuit sought a total of $775 million for owners ofaffected vehicles. A spokesman for Hyundai declined to comment about thesupposed total, citing the confidential manner of the settlement’snegotiations. Another spokesman from Kai Motors declined to comment as well,though a statement was issued in an email saying "Kia Motors America's priorityis and will remain making things right for our customers, which is why we areoffering to compensate all current and former owners of affected vehicles,using MPG ratings adjustments for the full length of their vehicle ownership.”In their November announcement of the overstated mileagenumbers, a flaw in their internal testing procedures was to blame. An apologywas offered to those who were falsely swayed by the inflated numbers, and thefuel economy numbers for vehicles on sale were immediately reduced. Hyundai andKia then promised to give debit cards to each owner as compensation to coverthe extra gasoline needed for use. Based on average fuel costs in differentstates, owners were given credit for their number of miles driven using theinflated miles totals. Hyundai revealed last month that it had set aside morethan $220 million for compensation, and Kia revealed a similar total of about$187 million.In the public detailsof the proposed settlement, owners of vehicles with inaccurate miles per gallonestimates will have the option of receiving a single lump-sum payment, or paymentthrough periodic installments to their credit cards through Hyundai and Kia’sreimbursement program. The amount of the payouts will depend upon the severityof the MPG overstatements; owners of the Elantra, Accent, Veloster, and SonataHybrid, all of which with highway miles per gallon ratings of more than 40,will receive an amount larger than models that claimed sub-40 estimates. Forowners who purchased an affected vehicle used, the payout total will be halved.For owners who chosethe lump-sum option, they will also have the choice of a dealer service creditworth 150% of the total amount instead of a cash payout to be spent on thingslike repairs or aftermarket products from Hyundai themselves, or a new carrebate voucher valued at 200% the payout amount. Hyundai dealerships will be askedto notify owners of vehicles included in the settlement about their availableoptions, as well as provide them with written information when they bring theirvehicles in for tune-ups and other services.

Hyundai,Reaches,Settlement,for

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