Hyundai, Kia to Pay Record Fine for Overstating Fuel Economy

Hyundai Motor Co. and its Kia Motors Corp. affiliate will pay a combined civil fines of $100 million for overstating fuel economy ratings for nearly 1.2 million of their 2012-2013 models by as much as 6 miles per gallon.

The U.S. Dept. of Justice and Environmental Protection Agency describe the fine as the largest in the history of the Clean Air Act. The California Air Resources Board, a co-plaintiff in the settlement, will receive $6.3 million of the fine.

The two companies also will forfeit 4.75 million greenhouse gas credits worth an estimated $200 million. The credits, which may be traded with other carmakers, are used to offset emissions from less fuel-efficient vehicles.

Finally, Hyundai and Kia have agreed to spend about $50 million on measures to prevent any future violations. Among other things, they are required to conduct compliance audits of their fleets for the 2015-2016 model years.

The companies blamed the original inflated numbers on test errors. But EPA alleges they deliberately chose favorable rather than average results.

Hyundai and Kia later paid an estimated $400 million to supply some 600,000 affected owners in the U.S. with lump-sum payments or gasoline debit cards.