Hyundai says it has entered into an agreement with the U.S. Environmental Protection Agency and the California Air Resources Board to resolve the governments’ investigation into Hyundai’s 2012 fuel economy ratings. The incorrect ratings were adjusted in approximately one quarter of Hyundai-made vehicles in the 2011-2013 model years reducing combined ratings by about 1-2 miles per gallon.
Hyundai has agreed to pay a $56.8 million civil penalty, forego the use of about 2.7 million greenhouse gas emissions credits, and continue with a series of measures and an independent certification test group to oversee fuel economy testing. Hyundai will also continue auditing 2015-16 vehicles to confirm MPG accuracy in reporting.
Hyundai attributes the incorrect MPG readings for its vehicles two years ago to be a “data processing error” in the coastdown testing. Hyundai says the misinterpreted the road load requirements for the testing and has since corrected the error.
Hyundai also addressed consumer concerns with the following:
On November 2, 2012, Hyundai announced the voluntary adjustment of fuel economy ratings for approximately one-quarter of its 2011-13 model year vehicles, reducing their combined city/highway fuel economy by 1-2 miles per gallon, and relabeled affected vehicles still in dealer showrooms. In order to compensate affected customers, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change plus a 15 percent premium in acknowledgment of the inconvenience. The majority of customers affected by the ratings restatement enrolled in the automaker’s reimbursement program and are being compensated based on their actual mileage and the fuel costs for the region in which they live. While customers responded favorably to the reimbursement program, Hyundai through a recent class action settlement offered the option of a single lump sum cash payment for those customers who would rather not return to a dealership to have their mileage verified. So, through either the one-time lump sum payment or original lifetime reimbursement program, customers have the option of being made fully whole for Hyundai’s ratings restatement.
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