• Inside Labour

    Terry Bell explores the connection between poultry, poverty and desperation.

  • A new ANC sweeper?

    Have the Guptas' new auditors mastered how to look the other way on cue, asks Solly Moeng.

  • Strategy for the big boys

    Formulating strategy across the span of huge companies is a marathon, says Ian Mann.

All data is delayed
See More

Hyundai to settle fuel economy cases

Feb 27 2013 08:46

Detroit - Hyundai Motor has agreed in principle to settle several lawsuits from US consumers who said they were duped by the automaker's misleading fuel economy claims, according to a filing made in federal court on Tuesday.

Hyundai's affiliate Kia Motors, also being sued for overstating the fuel economy of some models, is evaluating whether to join the settlement, according to the filing.

Both companies are facing lawsuits after announcing in early November that they overstated the fuel economy performance on more than 1 million recently sold vehicles by at least one mile per gallon.

A settlement amount was not disclosed. Hyundai offered a lump sum payment option as part of its settlement proposal.

Lawyers for Hyundai and the plaintiff drivers said they plan to file more details on the settlement with the court. A hearing to discuss the accord and how to implement it is scheduled for Thursday morning.

The companies' admission came after a probe by the US Environmental Protection Agency, which found errors in the mileage ratings of 13 Hyundai and Kia models from 2011 to 2013 model years.

Both companies agreed to compensate owners for the added fuel costs. Under the plan, customers will receive a debit card that will reimburse them for the difference in fuel economy, plus an extra 15% to acknowledge the inconvenience.

The news was a blow to Hyundai and Kia, both of which bragged about their vehicles' superior fuel economy in advertisements. Hyundai's "4 x 40" strategy centered on offering four models that got 40 mpg, including the Elantra small car.

Hyundai said in Tuesday's court filing that it would offer a lump sum option to drivers in lieu of its reimbursement plan.

Current drivers who bought one of the four Hyundai models that claimed to get 40 mpg will get higher lump sum payment compensation, according to Hyundai's proposed settlement. Those models include the Accent compact car, the hybrid version of the Sonata sedan and the Veloster small car.  

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

kia  |  hyundai



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote