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Hyundai and Kia Fined $100 Million for Overstating MPG

Korean automakers Hyundai and Kia admitted to overstating gas mileage numbers for 13 models and will have to pay $100 million in civil penalty to the U.S. government.

The window stickers with an incorrect fuel efficiency figure involves about 1.2 million vehicles.  The settlement with the U.S. government sets a new record for a penalty ever to be paid by an automaker in violation of the Clean Air Act

The overstatement which occurred back in 2012 exaggerated the number by up to six miles per gallon.

The announcement was made by the Justice Department and Environmental Protection Agency, and it could serve as a precedent for other automakers who violate the Clean Air Act in the future.

Also as part of the settlement, Hyundai-Kia must audit test results on current models, and it must set up an independent group to certify future test results, at a cost of around $50 million. This will make the total settlement to reach $350 million.

"This unprecedented resolution with Hyundai and Kia underscores the Justice Department's firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law," said US Attorney General Eric Holder in a statement announcing the settlement.

It's important to keep in mind that the EPA tests are designed to reflect "typical" driving conditions and driver behavior, but several factors can affect MPG significantly:

How & Where You Drive
Vehicle Condition & Maintenance
Fuel Variations
Vehicle Variations
Engine Break-In

Therefore, the EPA ratings are a useful tool for comparing the fuel economies of different vehicles but may not accurately predict the average MPG you will get.

Hyundai and Kia Fined $100 Million for Overstating MPG Reviewed by Brandon on 9:56 PM Rating: 5

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