Hyundai-Kia to pay up to $400 mil to settle class action suit

Article by Anita Panait, on December 25, 2013

Hyundai and Kia will pay up to almost $400 million as part of the settlement agreement over consumer lawsuits alleging that they overstated fuel economy ratings on some 900,000 vehicles sold in the United States. Hyundai Motor America's proposed settlement is around $210 million, while Kia Motors America is about $185 million, according to statements issued by the carmaker – all subject to court review that is expected in early 2014.

The South Korean carmakers faced dozens of class-action lawsuits after they disclosed in November 2012 that they had sold around 600,000 Hyundai and 300,000 Kia vehicles in the US with overstated fuel economy ratings. Officials from the carmakers apologized for the overstated mileage ratings, blaming flawed internal testing procedures for the errors.

The mpg revisions covered eight Hyundai and five Kia nameplates from the 2011, 2012 and 2013 model years like the Hyundai Elantra and Kia Soul. Most of the vehicles had their combined mpg ratings drop by 1 or 2 mpg. Some 53 of such suits were consolidated into a single case in federal court in Los Angeles, according to the statements.

The total settlement equates into an average lump sum payment of about $353 to owners and lessees of the 600,000 Hyundai vehicles, and $667 to 300,000 owners of affected Kia vehicles. "Kia Motors is a responsible company, and the proposed settlement enhances our goal of making things right for our customers by providing new reimbursement options," John Yoon, attorney for Kia Motors America, said in a statement.

Topics: hyundai, kia, lawsuit

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries