Thursday, December 26, 2013

Hyundai and Kia Announce Settlement Proposal for Fuel-Economy Adjustment Suit

2014 Hyundai Elantra

Last year, Hyundai and Kia were forced to lower the fuel-economy sticker values on a bevy of models after it was discovered both brands submitted erroneous figures to the EPA. The companies insisted that testing discrepancies were to blame, and offered buyers of affected vehicles a lifetime fuel-cost reimbursement plan based on mileage and fuel prices in their region. That wasn't good enough for some owners, who banded together and filed a class-action suit against Hyundai and Kia on the grounds that the reimbursement plans' required dealer visits would turn folks off from the option. Now, the sibling automakers have announced a proposed settlement for the suit, which goes under judicial review for approval early in 2014.

In Hyundai's case, the settlement could be up to $210 million, depending upon how many customers elect to participate, while Kia's stands at about $185 million. This equates to an average lump sum payment option—customers can still opt to keep the original reimbursement plans—of $353 for affected Hyundai customers and $667 for affected Kia owners. Those figures aren't set in stone, for they're dependent on a variety of factors including the customer's specific model, previous reimbursement, and ownership status. Hyundai and Kia also are offering up dealership credit worth 150 percent of the lump sum or 200 percent cash credit toward a new Hyundai or Kia vehicle purchase.



While it seems Kia and Hyundai's fuel-economy lawsuit woes might soon be behind them, we've noted how this sort of litigation does nothing to solve the root cause between customer dissatisfaction with EPA fuel-economy stickers and how they're used by manufacturers for advertising. The simple fact is that the EPA tests are contrived and tend to deliver fuel-economy estimates that are far different from those achievable in the real world—read why here. Until that test can more accurately estimate fuel use, don't expect these sort of lawsuits to go away.



from Car and Driver Blog http://blog.caranddriver.com

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