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Big money for a little lie

Last week, reports surfaced that Hyundai and its Kia Motors division had been found by the EPA to be quoting incorrect fuel economy numbers for 2012 to 2013 model vehicles. At the time, we mentioned that it was estimated that the flub would cost Hyundai millions of dollars in repartitions to customers who purchase their vehicles expecting to get the claimed fuel economy.

Hyundai and Kia both agreed to revise numbers on window stickers and reimburse owners of approximately 1.1 million affected vehicles that were sold since 2010 in North America. That number includes about 900,000 vehicles in the United States alone. Revising the window stickers has decreased the fleet wide MPG average for Hyundai-Kia by 1 mile per gallon from 27 mpg combined to 26 mpg.

The Hyundai Veloster was one of several models to have its fuel economy ratings cut
Moody's is estimating that the cost for the mistake will be about $100 million. Hyundai US executive John Krafcik said last week that, "Our focus is on making it right for the customers. We're honestly not so focused on that cost."

Moody's Investors Service said in a report, “Both companies have adequate financial cushions and the impact on their competitive positions will be manageable."
"The impact on the companies' brand recognition and sales performance in North America could be more material, given that high fuel efficiency has been one of their key selling points and the region is the group's largest market," says Chris Park, a Moody's vice president and Senior Credit officer.

Hyundai and Kia have attributed the misleading window sticker claims to a mistake in testing methodology. Hyundai is the fifth-largest automaker and North America accounted for 24% of the automaker’s global sales volume during the first nine months of 2012.

Source: Detroit News

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RE: still my buddy in ontario
By bebimbap on 11/7/2012 2:12:29 PM , Rating: 2
I own a Hyundai Elantra, and many other Toyota before it. And for myself, Ergonomics are very important even if the car is "cheap" it must have good value. The true cost of ownership for the Elantra vs a Corolla would be a win for the Hyundai, but you are paying for it with comfort. The Elantra is very loud on the road, though for the price it is "quiet enough." engine is weak, but again for the price... The ergonomics have a very cheap feel. makes you think that even china could produce better, but sadly everything that Hyundai makes is probably made by either the Chinese or Vietnamese... The "cloth" seats aren't cloth. Before buying the Hyundai I didn't know there was such a thing as Faux-cloth, or Faux-plastic.
For a couple of grand more The quality of the car would fee much better. I would say, definitly worth it.
If you want something new with 4 wheels with good mpgs and low price, yes Hyundai can't be beat, but I could also buy a 5 year old used Cadillac for that price, though MPG's would suck, the out of pocket amount I would pay would probably be about the same. If you want to feel good about driving a car, and unless you are the THING or the HULK I would have bought another car with better ergos/value probably Toyota or Honda.

RE: still my buddy in ontario
By Samus on 11/7/2012 2:54:24 PM , Rating: 2
I personally couldn't own a Korean car. Don't get me wrong, I love Samsung electronics and Korean culture but Toyota and the Japanese as a whole will always make vastly superior cars to the Koreans.

Even if the decision came down to price or style, Toyota's cost very little more, 15% on average, while losing their value half as fast. As for style, they're all hideous, so who cares :)

RE: still my buddy in ontario
By Richard875yh5 on 11/8/2012 9:47:36 AM , Rating: 2
A noisy car is a sign of a cheap car. No matter how cheap, I will not own a noisy car, and many like myself feel that way.

RE: still my buddy in ontario
By wordsworm on 11/8/2012 9:35:36 PM , Rating: 2
There are a lot of noisy expensive cars out there, too. All noisy cars should be banned.

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