Wednesday, November 05, 2014

Hyundai, Kia pay $100M for mpg errors

Hyundai, Kia pay $100M for mpg errors

By Tara Baukus Mello ·
Tuesday, November 4, 2014
Posted: 3 pm ET

Hyundai and Kia have agreed to pay a $100 million civil penalty for misstating fuel economy numbers on about 1.2 million model year 2012-2013 cars the automakers sold.
"Businesses that play by the rules shouldn’t have to compete with those breaking the law," Environmental Protection Agency Administrator Gina McCarthy said in announcing the fine. "This settlement upholds the integrity of the nation’s fuel economy and greenhouse gas programs and supports all Americans who want to save fuel costs and reduce their environmental impact."
In addition to the penalty, the largest in the history of the Clean Air Act, the automakers will spend about $50 million on measures to prevent future violations and will forfeit about $200 million in greenhouse gas credits that it previously claimed.
The EPA discovered the violations in 2012 when the agency found the automakers' internal testing led to faulty fuel ratings. The government found the carmakers, both owned by Hyundai Motor Group, overstated fuel economy by one to six miles per gallon. The companies also understated the lifetime emissions of greenhouse gases by about 4.75 million metric tons.
In November 2012, Hyundai and Kia corrected the fuel economy numbers for its affected cars and established a program to reimburse its owners for higher-than-expected fuel costs due to the overstated fuel economy. The affected cars included the Hyundai Accent, Elantra, Santa Fe and Veloster, as well as the Kia Rio and Soul.
To learn more, read Why do carmakers revise mpg numbers?
Tara Baukus Mello writes the cars blog as well as the weekly Driving for Dollars column, providing both practical financial advice for consumers as well as insight into the latest developments in the automotive world. Follow her on Facebook here or on Twitter @SheDrives.

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