Misstated Fuel Economy Fiasco Will Cost Hyundai $100 Million
November 7, 2012 9:13 AM
comment(s) - last by
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.
This article is over a month old, voting and posting comments is disabled
Sounds like Obama at work again.
11/8/2012 1:45:59 PM
Nailing another non-US automaker with the fed scepter of smiting. After the Toyota unintended acceleration bug (which also affects Pontiac Vibes btw, since they are just Toyotas with arrowheads, but Obama killed Pontiac and Saturn so no loss).
"There's no chance that the iPhone is going to get any significant market share. No chance." -- Microsoft CEO Steve Ballmer
Hyundai, Kia Busted for Overstating Fuel Economy Claims after EPA Probe
November 2, 2012, 8:25 AM
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
As iPad Sales Wane and Watch Flops, iPhone Saves Apple's Profit With Its Heroics
July 22, 2015, 6:13 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Microsoft July 29 Windows 10 Launch: Freebies, Rollout, and What's Next
July 21, 2015, 2:40 PM
Quick Note: Apple Watch to Get Brick and Mortar Boost From Best Buy
July 27, 2015, 3:00 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information