Hyundai Agrees to Tentative Payout in US Fuel Efficiency Lawsuits

HyundaiHyundaiRepublic of Korea, 1967 > present79 models
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and KiaKiaRepublic of Korea, 1944 > present52 models
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are anxious to put its fuel economy woes behind it. The company apologized in November for overstating the fuel economy on about 600,000 of its cars by as much a 4mpg. It gave customers a debit card that would pay for a portion of their fuel costs based on the vehicle's mileage and where it was purchased. However, that was not enough for many buyers and a lawsuit settled today means that all of the owners of the affected cars will be able to choose either a lump sum or the debit card. 

The tentative agreement would settle 38 lawsuits that had been consolidated into federal court in Los Angeles. Hyundai has agreed to the settlement, and Kia has not yet decided. 

The monetary amount of the lump sum have not yet been disclosed, but if accepted affected consumer would be able to choose among the lump sum, 150% of the lump sum in credit towards vehicle service at a Hyundai dealer or 200% of the lump sum towards a new Hyundai or Kia. They could also opt for the debit card. 

Neither company has put out any official statements regarding the settlement because it is still ongoing. 

Hyundai and Kia say that the overstated fuel economy was caused by flawed internal testing procedures. The value of the debit card program was valued at $225 million and $187 million by Hyundai and Kia respectively. 

Source: Automotive News