Hyundai Settlement Offers Lump Sum Paybacks to Owners of Overstated Fuel Economy Models
February 27, 2013 6:04 PM
comment(s) - last by
Drivers also have the option of accepting the debit card payments instead
After admitting that it
overstated fuel economy ratings
for some of its models last year, Hyundai has now agreed to settle its U.S. lawsuits.
A filing, which was revealed today, showed that Hyundai agreed to
general terms of a settlement
earlier this month. No financial terms have been disclosed, so it is unclear what Hyundai will have to pay under the settlement.
The proposed settlement gives owners of Hyundai models with misstated fuel economy ratings the choice to either continue accepting money through the debit card plan (which offers periodic payments to a credit card) or receive a lump sum settlement payout.
Payout amounts will depend on the difference in fuel economy from the actual figure to the overstated figure. Those with previously rated 40 MPG models -- like the Accent, Elantra, Veloster and Sonata Hybrid -- are expected to get a larger payout than those with under 40 MPG.
Hyundai said it had set aside about $225 million for its owner compensation plans.
Kia was also busted for overstating fuel economy ratings for some of its models, but the automaker was not a part of Hyundai's settlement. However, Kia was invited to join the settlement and is currently reviewing the terms.
Back in December 2011,
called on the EPA to investigate Hyundai over its fuel economy claims. Hyundai claimed that its Elantra achieved 29 MPG in the city and 40 MPG on highway. However, the organization received a higher-than-usual number of complaints that real-world mileage was in the mid-20 mpg range.
The EPA investigated Hyundai for misleading mileage claims and found that the fuel economy estimates of most of its 2012-2013 models were overstated. It made the same conclusion for Kia, and both automakers said they would lower the fuel economy estimates on the majority of their 2012 to 2013 models.
Hyundai and Kia admitted to overstating the estimated fuel economy on window stickers of about 900,000 vehicles sold in the U.S. since late 2010. Some of the MPG window stickers that will required include the Hyundai Accent and the Kia Soul ECO. The Accent had its 30/40/33 (city/highway/combined) rating drop to 28/37/31. The Kia Soul ECO saw the biggest drop of any affected model going from 27/35/30 to 24/29/26.
Kia said it has set aside about $187 million for its owner compensation plans.
This article is over a month old, voting and posting comments is disabled
RE: Low payout for big profit
2/28/2013 9:30:04 PM
I wonder if the payments are the same for everybody. Maybe they offer higher refunds for those affected more. But on average, it looks like the math checks out. I'm pretty sure Hyundai must have some accountants that are good at math...
"The whole principle [of censorship] is wrong. It's like demanding that grown men live on skim milk because the baby can't have steak." -- Robert Heinlein
Hyundai, Kia Must Provide More Answers to Senate About False MPG Claims
November 30, 2012, 6:12 PM
Hyundai, Kia Busted for Overstating Fuel Economy Claims after EPA Probe
November 2, 2012, 8:25 AM
Consumer Watchdog Accuses Hyundai of Fudging Elantra 40 MPG Claims
December 5, 2011, 12:57 PM
Tesla Adding More Superchargers, Stores, Service Centers Throughout Europe in 2014
March 6, 2014, 4:00 PM
EPA to Cut Two-Thirds of Sulfur in Gasoline Starting in 2017
March 4, 2014, 5:40 PM
UPDATE: Apple's iOS Comes to Your Car via CarPlay Infotainment System, iPhone 5 and up Supported
March 3, 2014, 3:28 PM
Four U.S. States Fighting Over Tesla Motors' Gigafactory Location
March 3, 2014, 12:26 PM
Ford: We're "Not Married to Microsoft" for Sync Gen. 3
February 27, 2014, 3:56 PM
Tesla Motors' Gigafactory to Help Push Out Half Million EVs/Year in 2020
February 27, 2014, 9:22 AM
Most Popular Articles
Facebook Kills Popular Messenger App for PCs
March 1, 2014, 4:01 PM
Mt. Gox Bitcoin CEO Can't Stifle Grin as he Bows in Apology for Bankruptcy
February 28, 2014, 5:00 PM
Bitcoin King: Mt. Gox CEO Mark Karpelès' History of Arrests, Firings
March 5, 2014, 9:05 AM
Two More Microsoft Executives Leaving the Company
March 3, 2014, 4:38 PM
USAF Moves Forward With Long Range Bomber Program Despite Budget Crunch
March 4, 2014, 9:44 AM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information