Autoblog

Hyundai and Kia set aside $412 million for false mileage claims

Jeffrey N. Ross — Fri, 25 Jan 2013 13:30:00 EST

Filed under: Government/Legal, Hyundai, Kia, Earnings/Financials

We still don't know how the whole fuel economy ratings debacle is going to play out for Hyundai and Kia, but both automakers are preparing to make good on their promises to reimburse vehicle owners for lower-than-promised mileage figures. According to Automotive News, Hyundai and Kia have set aside a combined total of $412 million ($225 million for Hyundai and $187 million for Kia) as compensation, which will be sent out on a case-by-case basis via debit cards depending on the vehicle and the mileage driven.

Announced back in November, the exaggerated miles per gallon claims affect around 900,000 Kia and Hyundai products produced for the 2011 through 2013 model years sold in the US and Canada. This whole deal has had plenty of action ranging from suspected whistleblowing from a rival US automaker and even insider trading, but it has probably been most frustrating for vehicle owners who, in most cases, saw their vehicles' city and highway ratings drop between one and three digits.

Hyundai and Kia set aside $412 million for false mileage claims originally appeared on Autoblog on Fri, 25 Jan 2013 13:30:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #313

Dan Roth — Tue, 18 Dec 2012 17:29:00 EST

Filed under: Podcasts, Truck, Work, Chevrolet, Dodge, Ford, GM, GMC, Hyundai, Infiniti, Kia, Subaru, Toyota

Infiniti model names, new GM trucks, Ford work vans, Hyundai ratted out on economy, Ward's 10 Best Engines

Episode #313 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about Infiniti's confusing model name re-jiggering, the 2014 General Motors pickups, Ford's new Transit line of vans, reports that a domestic automaker ratted on Hyundai/Kia about fuel economy ratings, and Ward's 2012 list of 10 Best Engines. For those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!

Autoblog Podcast #313:

Topics:

In the Autoblog Garage:
2013 Toyota Prius C
2013 Subaru Legacy
2013 Dodge Durango R/T

Hosts: Dan Roth, Zach Bowman, Jeff Ross

Runtime: 01:18:25

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Continue reading Autoblog Podcast #313

Autoblog Podcast #313 originally appeared on Autoblog on Tue, 18 Dec 2012 17:29:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #313 goes LIVE at 10PM Eastern!

Dan Roth — Mon, 17 Dec 2012 21:30:00 EST

Filed under: Etc.

We're almost ready to record Episode #313 of the Autoblog Podcast. Check out the topics below, add your own to the Q&A and join us live via UStream, as well. Keep reading for our embedded UStream player, and thanks for listening!

Discussion Topics for Autoblog Podcast Episode #313

Continue reading Autoblog Podcast #313 goes LIVE at 10PM Eastern!

Autoblog Podcast #313 goes LIVE at 10PM Eastern! originally appeared on Autoblog on Mon, 17 Dec 2012 21:30:00 EST. Please see our terms for use of feeds.

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Will fallout from Hyundai and Kia's MPG issues hurt resale values?

Jonathon Ramsey — Tue, 06 Nov 2012 19:01:00 EST

Filed under: Government/Legal, Hyundai, Kia

First came Hyundai's and Kia's corporate admission of guilt about overstating fuel economy numbers, then the recompense, then the lawsuits. Now begins the process of gnawing on every one of the consequences. In case you've only just returned from the International Space Station, Hyundai and Kia have admitted that about a third of the cars they have sold over the past three years have advertised inflated EPA fuel mileage numbers. For instance, the highway mpg number for the 2013 Hyundai Accent isn't 40 mpg anymore, it's either 37 or 38 miles per gallon. The combined mpg for the Kia Soul can take a four mpg hit depending on the trim level.

A piece in USA Today questions how the revelation will affect resale values for the Korean automakers, and the majority of opinions seems to be "not much." An analyst at Kelley Blue Book suggests there could be a short-term penalty, but that the impact might be mostly emotional, and industry watchers at the Institute for Crisis Management and ALG believe that Americans move on pretty quickly and the "absolute dollar" impact will be minimal.

When Consumer Reports compared advertised highway mileage to actual mileage it received, it found discrepancies from 11 mpg more (for the Volkswagen Passat TDI) to one mpg less (for the Hyundai Elantra, coincidentally), and Hyundai and Kia each had three vehicles that were spot on, including the Sonata Hybrid that achieved the company's advertised 40 mpg. Paradoxically, as consumers focus even more on EPA ratings and the government agency's testing protocols have been revised in an attempt to improve accuracy, people seem to be putting even more stock in the phrase "your mileage may vary." So too might your resale values, but it probably won't be because of this latest boondoggle.

Will fallout from Hyundai and Kia's MPG issues hurt resale values? originally appeared on Autoblog on Tue, 06 Nov 2012 19:01:00 EST. Please see our terms for use of feeds.

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Autoblog Podcast #307

Dan Roth — Tue, 06 Nov 2012 16:45:00 EST

Filed under: Podcasts, Government/Legal, Hyundai, Kia, Scion, Toyota, Tesla, Electric

Suzuki bankruptcy, Hyundai/Kia mileage, Scion FR-S supercharger, Tesla Model S awards, Consumer Reports top 10 most reliable American cars

Episode #307 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about Suzuki departing the US market, the debacle surrounding Hyundai and Kia fuel economy numbers, rumors of a Scion FR-S supercharger kit, the Tesla Model S being named one of the best inventions of 2012 by Time magazine and Consumer Reports ranking its top 10 most reliable American cars. For those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!

Autoblog Podcast #307:

Topics:

In the Autoblog Garage:
2012 Scion iQ
2012 Nissan Frontier
2013 Mazda MX-5 Miata

Hosts: Dan Roth, Zach Bowman, Jeff Ross

Runtime: 01:17:49

Continue reading Autoblog Podcast #307

Autoblog Podcast #307 originally appeared on Autoblog on Tue, 06 Nov 2012 16:45:00 EST. Please see our terms for use of feeds.

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Act Surprised: Hyundai, Kia sued over inflated fuel mileage ratings

Jeremy Korzeniewski — Mon, 05 Nov 2012 19:21:00 EST

Filed under: Government/Legal, Earnings/Financials

You knew this was coming. Shortly after Hyundai and Kia admitted that their internal processes for calculating fuel economy were flawed, resulting in a major program to compensate drivers for lower-than-advertised mile-per-gallon numbers and the re-rating of a large percentage of the two-headed Korean automaker's vehicles, we have word of a lawsuit.

There had already been a lawsuit seeking class-action status filed in California well before the admission of inflated fuel economy claims was made. This latest suit was filed in Ohio on behalf of Molly Simons, a 2012 Kia Rio owner, and Rebecca Sanders and Jeffrey Millar, owners of a 2013 Hyundai Elantra. Both of these models were included in the 900,000 or so vehicles cited by the automakers as having incorrect mileage estimates.

According to Automotive News, this lawsuit seeks, in addition to covering legal fees and unspecified damages, to allow owners of affected Hyundai and Kia models in Ohio to back out of their purchase or lease agreements. Both Hyundai and Kia have so far declined to comment on the lawsuit.

Act Surprised: Hyundai, Kia sued over inflated fuel mileage ratings originally appeared on Autoblog on Mon, 05 Nov 2012 19:21:00 EST. Please see our terms for use of feeds.

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Submit your questions for Autoblog Podcast #307 LIVE

Dan Roth — Mon, 05 Nov 2012 17:10:00 EST

Filed under: Etc.

We record Autoblog Podcast #307 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.

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Submit your questions for Autoblog Podcast #307 LIVE originally appeared on Autoblog on Mon, 05 Nov 2012 17:10:00 EST. Please see our terms for use of feeds.

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Hyundai, Kia admit exaggerated mileage claims, will compensate owners [UPDATE]

Zach Bowman — Fri, 02 Nov 2012 09:01:00 EST

Filed under: Coupe, Budget, Sedan, Government/Legal, Hatchback

Hyundai and Kia are lowering the fuel economy estimates on a majority of 2012 and 2013 models. The Detroit News reports a probe by the Environmental Protection Agency has found both manufacturers guilty of posting false fuel economy estimates on vehicle window stickers since late 2010. The companies will spend millions of dollars compensating the owners of some 900,000 vehicles sold under the claims. This marks the largest spate of fuel economy reductions in the history of the automotive industry. Prior to this probe, only two vehicles have seen their window sticker fuel economy values reduced since 2000.

Hyundai aggressively advertised the fact that the brand offers four models that boast 40 mpg, but that claim is no longer true. The 2013 Hyundai Accent, Veloster and Elantra will now see their EPA estimates fall to either 37 or 38 miles per gallon on the highway. The report quotes Hyundai CEO John Krafcik as saying, "We're extremely sorry about these errors" and blamed "procedural errors" in the company's fuel economy testing as the reason behind the discrepancy.

All told, 35 percent of 2011-2013 models sold through October will see a reduction. Of those, 580,000 will see a drop of around 1 mpg, while 240,000 units will have their EPA figures cut by 2 mpg. The remaining 80,000 will drop by 3 to 4 mpg. Owners will be compensated based on their vehicles' odometer readings, and both automakers will contribute an additional 15 percent over the dollar value. The funds will be awarded via prepaid debit cards. For an owner who drove 15,000 miles, an adjustment of 1 mpg would result in a refund of around $88.

For some time there has been suspicion that the Korean automakers' fuel economy claims were too optimistic, which most recently led to a class-action lawsuit filed in July of this year by an organization called Consumer Watchdog on behalf of Elantra owner Louis Bird of California.

The EPA and Hyundai have issued press releases on the new situation, which you can read below. You may also view the full model breakdown in the gallery below.

UPDATE: On a media conference call, Hyundai and Kia attributed the discrepancies to "honest mistakes" and "human error" during in-house fuel economy evaluations. Additional steps were added to the evaluation process in an attempt to ensure accuracy, which ultimately caused the higher-than-EPA figures. Both companies stress there was no intentional effort made to deceive either the federal government or consumers. There's no indication as to how much the apology campaign will cost, though Hyundai and Kia both plan to roll out extensive advertising campaigns to alert consumers of the issue.

Continue reading Hyundai, Kia admit exaggerated mileage claims, will compensate owners [UPDATE]

Hyundai, Kia admit exaggerated mileage claims, will compensate owners [UPDATE] originally appeared on Autoblog on Fri, 02 Nov 2012 09:01:00 EST. Please see our terms for use of feeds.

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