Hyundai Motor America and Kia Motors America have reached a settlement with over 600,000 vehicle owners who experienced financial losses due to inflated fuel economy estimates. This resolution follows a series of class-action lawsuits that emerged after the automakers admitted to overstating the miles per gallon (MPG) ratings for nearly 900,000 vehicles sold in the United States.
In November 2012, Hyundai and Kia disclosed that they had sold approximately 900,000 vehicles in the U.S. with incorrect fuel economy ratings. This revelation led to 38 class-action lawsuits being consolidated into a single case in a federal court in Los Angeles. The settlement, which has not been publicly detailed, addresses the financial damages suffered by the owners of these vehicles.
While the exact terms of the settlement remain confidential, one lawsuit had sought $775 million in damages. Hyundai and Kia have collectively set aside over $400 million for compensation—$220 million by Hyundai and $187 million by Kia. The compensation will be distributed through a reimbursement program, offering owners either a lump-sum payment or periodic installments.
Owners of affected vehicles have several compensation options:
The amount of compensation varies depending on the model and the extent of the MPG overstatement. For instance, owners of models like the Elantra, Accent, Veloster, and Sonata Hybrid, which had highway MPG ratings over 40, will receive higher payouts compared to models with sub-40 MPG claims. Additionally, owners who purchased affected vehicles used will receive half the payout amount.
Hyundai and Kia attributed the overstated mileage numbers to flaws in their internal testing procedures. Both companies issued public apologies and immediately reduced the fuel economy ratings for the affected vehicles. They also promised to provide debit cards to cover the extra gasoline costs incurred by the owners, based on average fuel costs in different states.
Hyundai and Kia dealerships will notify owners of the settlement and their compensation options. Written information will also be provided during vehicle tune-ups and other services to ensure that all affected owners are aware of their entitlements.
The settlement between Hyundai, Kia, and the affected vehicle owners marks a significant step in addressing the financial damages caused by overstated fuel economy estimates. With various compensation options available, the automakers aim to make amends and restore consumer trust.
For more information on the settlement and compensation options, visit the Hyundai and Kia official websites.
This article has been fact-checked and expanded to provide a comprehensive overview of the Hyundai and Kia fuel economy lawsuit settlement.
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