Consumers Get More Options in Hyundai/Kia Gas Mileage Settlement


  • 2012 Hyundai Elantra Picture

    2012 Hyundai Elantra Picture

    Hyundai and Kia announced this week they will pay up to $395 million to settle consumer lawsuits related to overstated fuel-economy ratings in the U.S. | December 26, 2013

Just the Facts:
  • Hyundai and Kia announced this week they will pay up to $395 million to settle consumer lawsuits related to overstated fuel economy ratings in the U.S.
  • Consumers now get more choices in the settlement, including a single lump-sum payment.
  • Hyundai estimated that the proposed lump-sum amount would result in an average payment of $353, while Kia said the estimated average payment would amount to $667.

ORANGE COUNTY, California — Hyundai and Kia announced this week they will pay up to $395 million to settle consumer lawsuits related to overstated fuel economy ratings in the U.S.

Consumers now get more choices in the settlement, including a single lump-sum payment.

Hyundai estimated that the proposed amount would result in an average payment of $353, while Kia said the estimated average payment would amount to $667.

For example, an owner of a 2012 Hyundai Elantra would receive a lump-sum payment of $320 minus any previous reimbursement payments, the automaker said.

The lump sum is an alternative to the "lifetime reimbursement" program that Hyundai and Kia rolled out when they restated their fuel economy ratings last year. Hyundai blamed "procedural errors" at its testing operations in Korea for incorrect fuel economy ratings for approximately 600,000 Hyundai vehicles sold between 2010 and 2012. The adjustment affected about 300,000 Kia vehicles.

Consumers have other options, according to the settlement. They include a Hyundai or Kia dealership credit of 150 percent of the lump-sum cash payment amount, or a credit of 200 percent of the cash amount toward the purchase of a new vehicle.

Hyundai and Kia restated their fuel economy ratings in November 2012. Hyundai said the adjustment affected approximately 27 percent of its 2011-'13 vehicles, reducing their combined city/highway fuel economy by 1-2 mpg.

Initial details of the settlement are available at HyundaiMPGInfo.com and KiaMPGInfo.com.

The automakers said that consumers will be able to access more in-depth Web sites dedicated to the settlement following preliminary court approval in early 2014.

"We are pleased with the proposed settlement," said W. Gerald Flannery, general counsel of Hyundai Motor America, in a statement. "It demonstrates the ongoing Hyundai commitment to taking care of its customers."

Edmunds says: Consumers get four ways to receive compensation for increased fuel costs in this case, which should go a long way toward making everybody happy.

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