Hyundai and Kia’s U.S. units announced that they reached an agreement to pay a total of $395 million (€288 million) to settle lawsuits filed by owners of cars affected by the Korean carmakers’ exaggerations of fuel economy ratings .
According to the agreement, the companies will reimburse American owners of about 600,000 Hyundai and 300,000 Kia vehicles from the 2011 to 2013 model years.
In November 2012, Hyundai and Kia admitted that they overstated fuel economy by at least 1mpg some of their vehicles, following an EPA inquiry that found errors for 13 Hyundai and Kia models from the 2011 to 2013 model years.
Hyundai said the lump-sum payments would cost about $210 million (€153 million), while Kia estimated payments at $185 million (€135 million). The average lump sum payment will be $320 (€234), minus any previous reimbursements payments received, Hyundai said.
However, the amount each company pays out will depend on how many owners opt for a one-time payment rather than remain in the “lifetime reimbursement” program in which owners get debit cards to pay them for the difference between actual fuel economy and the companies’ original statements.
Consumers can also choose other options, such as a dealership credit of 150 percent of the lump sum cash payment amount, or a credit of 200 percent of the cash amount toward the purchase of a new vehicle.
By Dan Mihalascu
