U.S. Customers Win Fuel-Economy Cash Settlement from Hyundai

Hyundai Motor Co. has agreed to settle 38 consolidated federal lawsuits filed by American consumers who allege the company misled them about the fuel efficiency of its models.

Plaintiff lawyers say owners of about 600,000 Hyundai vehicles sold in the U.S. would each have the option of receiving an unspecified lump-sum payment.

The alternative will be to continue using the debit cards the South Korean carmaker issued in November after admitting that its fuel-economy ratings were overstated. The cards are meant to reimburse customers for their additional fuel expense.

Hyundai affiliate Kia Motors Corp., which has been sued on the same grounds, says it is considering whether to join the settlement. Kia distributed about 300,000 debit cards to vehicle owners late last year.

Hyundai and Kia disclosed last month that they had set aside $225 million and $187 million, respectively, to cover the cost of those cards. The companies say the faulty fuel-economy estimates were caused by flawed internal testing procedures.