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This time, Hyundai gets called out in home market of South Korea

Hyundai/Kia last caught flak in late 2012 with regards to inflated fuel economy claims in over 1 million vehicles. After being audited by the EPA, the company admitted that “errors” were made in its fuel economy calculations.
 
“Given the importance of fuel efficiency to all of us, we’re extremely sorry about these errors,” said John Krafcik, president and CEO of Hyundai Motor America, back in November 2012. 


2015 Hyundai Sonata
 
It appears that Hyundai didn’t learn its lesson the first time around (which cost is nearly $400 million), and has admitted to another “error” in calculating the fuel economy for its redesigned, home-market Sonata. Hyundai had initially stated that the revised sedan saw its fuel economy improve by 6 percent compared to the previous model. However, government testing showed that the improvement was only 2 percent.


 
The 6 percent improvement also seemed incredibly optimistic given that the revised Sonata is actually heavier than the model it replaces.
 
Hyundai has since apologized for the irregularity, stating that it is “very sorry for causing confusion.”

Sources: Reuters, Autoblog Green, Detroit News



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Not fines, jail time
By tayb on 3/18/2014 11:17:12 AM , Rating: 2
I think it is time to strip the "limited" portion away of a Limited Liability Corporation. If you defraud customers you are guilty of fraud. Take the CEO and throw him or her in a jail cell.

Fines mean nothing. They are passed back to the consumers and used to reduce taxes as a business expense. Throw these people in jail.

If the head of a company is to be thrown in jail for fraud he or she might actually think twice about committing fraud. And lying about fuel economy numbers is fraud.




RE: Not fines, jail time
By FITCamaro on 3/18/2014 12:55:13 PM , Rating: 2
Except you don't know if the CEO was involved in the decision.


RE: Not fines, jail time
By MozeeToby on 3/18/2014 3:39:23 PM , Rating: 2
Ok, how about this then. Calculate the cost difference between the expected and actual mileage over the expected life of the car. Add 50% for punitive damages and another 10% to cover the cost of the bureaucracy, give the rest to everyone who bought the vehicle under the misleading numbers.

A few hundred million dollar fines should be enough to squash this behavior.


RE: Not fines, jail time
By Reclaimer77 on 3/18/2014 4:25:23 PM , Rating: 2
Throw someone in jail, that you have NO proof was even involved, over a 4% discrepancy in fuel economy?

No, we have enough people in jail already. Your punishment for such a small thing is cruel and unusual.


RE: Not fines, jail time
By TSS on 3/18/2014 8:07:16 PM , Rating: 2
Correction: There's enough middleclass/poor people in jail already.

I'm sure everybody here could agree we can find a few more jail cells for white collar criminals.

The OP does have a point. Maybe the CEO doesn't need to go to jail but somebody should. Look through the company files like emails and i'm sure somebody will turn up to take the fall. The more serious the offence the higher up the person thrown in jail.

Maybe a 4% disrepancy is too much to throw the CEO in jail for but atleast the head of marketing could do 100-200 hours of community service or something like that. Considering it was the community that was defrauded in the first place i'd say it'd fit the crime.

Otherwise it just sends the signal that consumer fraud is A OK. Though to be honest, considering what banks where paid to get away with in the last few years, that point might've been crossed long ago.....


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