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Just one day after reporting that Hyundai and Kia had admitted to overstating the estimated fuel economy on the window stickers of nearly 1.1 million 2011-2013 model-year vehicles, we’ve learned that a class action lawsuit has been filed in the United States. The case joins a Canadian class action lawsuit over the same issue.
The Korean automakers admitted on Friday to overstating the mileage on over a million Hyundai and Kia vehicles in North America since 2010, including about 900,000 in the U.S. The automakers agreed to reimburse current and former owners by giving them debit cards containing the additional money they spent on gasoline due to the lower-than-advertised gas mileage, plus 15%.
That’s not enough for some irate Hyundai and Kia customers, who filed a class action lawsuit in Ohio. The Hyundai/Kia class action lawsuit is seeking more than $5 million in damages and accuses the automakers of “knowingly or recklessly exaggerated estimated gas mileage and fuel economy rating information … in order to entice” the owners into buying the vehicles.
The Hyundai/Kia mileage class action lawsuit was filed by Canadian citizens Rebecca Sanders and Jeffrey Millar, who live in Cincinnati and bought a 2013 Hyundai Elantra; and Molly Simons, a resident of Ohio who bought a 2012 Kia Rio.
Hyundai spokesman Chris Hosford would not comment on the class action lawsuit but defended the Hyundai/Kia mileage reimbursement program, which could provide as much as $100 million in refunds to affected consumers.
“We think our reimbursement program provides the best, quickest, and most customer-focused remedy. We are fully compensating affected Hyundai owners for the additional lifetime fuel costs associated with our rating adjustment — plus a 15 percent premium. Owners have responded very favorably to the plan. Our priority is to make this right for our owners, and that’s precisely what this program does,” Hosford said.
The Hyundai/Kia mileage issue was uncovered during an investigation by the Environmental Protection Agency that found widespread discrepancies between the window stickers on Hyundai and Kia vehicles and EPA testing. Most vehicles were receiving an average fuel economy of 1 mpg less than advertised, while others, such as the Kia Soul, were getting 6 mpg less than advertised.
Consumer Watchdog, a consumer group that asked the EPA to audit mileage of the Hyundai Elantra in January after receiving a barrage of consumer complaints, said it was happy with the results of the EPA investigation.
“The EPA rightly audited Hyundai and the public deserves to know the whole truth about why these test results were inaccurate and whether or not they were intentionally falsified,” said Jamie Court, president of Consumer Watchdog.
The agency spearheaded a false advertising class action lawsuit against Hyundai this summer challenging the company’s “40 Miles Per Gallon” Elantra. According to the class action lawsuit, filed in California, the Elantra only gets 29 mpg on the highway – far below its advertised mileage.
“[The] illegal advertisements caused tens of thousands of California drivers to purchase or lease 2011 and 2012 Elantras and consequently incur unexpected fuel costs,” the Hyundai Elantra class action lawsuit states.
Hyundai and Kia customers with questions about the mileage reimbursement program can find answers at www.hyundaimpginfo.com and www.kiampginfo.com.
The U.S. Hyundai/Kia Mileage Class Action Lawsuit case is Sanders, et al. v. Hyundai Motor Company, et al, Case No. 12-cv-853, Ohio Southern District Court, Cincinnati.
UPDATE 1: Hyundai and Kia reached a $400 million class action lawsuit settlement in February 2013, which was announced in December 2013.
UPDATE 2: A group of breakaway Class Members filed an objection to the proposed Hyundai Kia class action lawsuit settlement, calling it “unreasonable” and “unfair” to consumers.
UPDATE 3: A settlement has been reached in a class action lawsuit alleging Hyundai Motor America and Hyundai Motor Company misrepresented the fuel economy of certain Hyundai vehicles. Consumers who purchased or leased certain Hyundai vehicles could be eligible for a cash payment or other benefits. Learn more at the Hyundai Fuel Economy Settlement.
UPDATE 4: As of Apr. 11, 2016, six different appeals have been filed concerning the Hyundai Fuel Economy Settlement. Until the Court resolves those appeals, the Claims Administrator is unable to mail out settlement funds.
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104 thoughts onFirst Hyundai/Kia Mileage Class Action Lawsuit Filed
UPDATE 4: As of Apr. 11, 2016, six different appeals have been filed concerning the Hyundai Fuel Economy Settlement. Until the Court resolves those appeals, the Claims Administrator is unable to mail out settlement funds.
Very dissapointed with the car kia rio 2012 gas mileage is not as good as stated
What is the status of my claim in the KIA MPG Class Settlement? My claim was submitted 1/11/2015, and I have not heard anything regarding this claim. Is there something that I should do to get this resolved?
UPDATE 3: A settlement has been reached in a class action lawsuit alleging Hyundai Motor America and Hyundai Motor Company misrepresented the fuel economy of certain Hyundai vehicles. Consumers who purchased or leased certain Hyundai vehicles could be eligible for a cash payment or other benefits. Learn more at the Hyundai Fuel Economy Settlement.
UPDATE 2: A group of breakaway Class Members filed an objection to the proposed Hyundai Kia class action lawsuit settlement, calling it “unreasonable” and “unfair” to consumers.
UPDATE 1: Hyundai and Kia reached a $400 million class action lawsuit settlement in February 2013, which was announced in December 2013.
i would like to know how to become part of the class action suit against hyundia,
Thank you.
[Re: US Hyundai-Kia Fuel Economy Litigation] [Part 1 of 4]
In a Inglewood, California small claims case 12S01314, a Hyundai car owner was able to get a judgment against a Hyundai dealer for $724 including court fees. A Hyundai dealer did not oppose a payout of $10,000 for the single Hyundai owner. This same car owner, by himself, sought $85 million dollars judgment against Hyundai Motor America, Los Angeles Central District case Johnson v Taylor et al. CV13-2264 FMO (MRWx).
The proposed settlement by Girard Gibbs will give car owners at about $400, less than what the small claims court had already ruled a similar case worth. Hyundai also sought to pay the $724 themselves, thus bringing the potential value to $1400 for a single plaintiff, and the possibility of engine failure, facts that class action law firm Girard Gibbs LLP of San Francisco has ignored.
[Re: US Hyundai-Kia Fuel Economy Litigation] [Part 2 of 4]
Hyundai Motor America and Girard Gibbs are also named in a Los Angeles filed bankruptcy case. The State Bar of California and office of the state attorney general has been asked to revoke the license certification of two firms/dealers indirectly connected to the class action. Read the Toyota class action filed 2012 settlement agreement online to get an idea of what will happen if the Hyundai settlement is signed by the Judge. Class members received $30-$125 each, for damages and diminished value, while the CASH COW lawsuit awarded 25 law firms and 85 attorneys attorneys a whopping $227 million dollars (estimated).
[Re: US Hyundai-Kia Fuel Economy Litigation] [Part 3 of 4]
If the court approves the settlement in 2014, class members may still have the option to opt out of the settlement or go before the court with their grievances. It will be unfortunate if the court does not consider the fraud and retaliation that has already been proven and admitted to by Hyundai Motor America. Is it worth it for car owners to agree to $400 and possible waive their rights to any Hyundai warranty repairs in the further? The best bet may be to get rid of the Hyundai car due to Hyundai’s history of retaliation. Many car owners say they will not buy Hyundai-Kia because of Hyundai’s stated policy that they can deny service and seek your arrest if you seek service at their dealers. [based on documents filed with the court.]
While I never believe EPA estimates (I cut them about 10%), I saw that Hyundai was lying about their mileage. I met with a manager about the mileage listed on the MSRP and said it was wrong and should have been corrected. I walked the lot when the manager lied to me and tried fumbling an answer. All 2013 and 2014 Elantras that I saw on the lot still showed the bogus mileage. They obviously did that to draw in more buyers.
I have nothing on my vehicle to hinder the mileage and in all my years, I’ve never seen anything like this. They’re not dismayed – they know about what’s going on and they’re not stopping it because it sells cars. (I purchased the car in early 2014.) What I don’t understand is why our government continues to support this company. I am waiting it out and will use another vehicle part time to keep the mileage lower. Then I will dump the car.
Here’s Hyundai’s bogus answer when I contacted them (knowing full well they would not accept responsibility for what they did):
Thank you for contacting Hyundai Motor America. Hyundai values your opinions and we appreciate you taking the time to contact us with your comments and suggestions about your Elantra.
We are extremely dismayed to learn about your concerns about the mileage on your Elantra.
If the MPG number on the Monroney label (the large sticker in the window of new cars) on your Elantra was incorrect, we do apologize. All of the old, incorrect stickers were to have been replaced by November 2, 2012. If you purchased your Elantra prior to this date, then there is a good chance that the label may be an old, inaccurate label.
If, however, you purchased your Elantra after November 2, 2012, the old Monroney label should have been removed, and a new, accurate label should have been put in it’s place.
The Environmental Protection Agency (EPA) provides basic fuel economy estimates which are intended to reflect “typical” driving conditions, but are also conducted in a controlled manner. The city and highway miles per gallon (MPG) estimates help consumers compare the fuel economy of different vehicles tested under the same procedures.
While the EPA estimates are a useful tool for comparing vehicles, there are many factors that affect gas mileage, including how the customer drives, vehicle condition, weather conditions, fuel quality variations, use of air conditioning and other accessories (e.g. roof racks, spoilers), etc. Given these factors, the actual mileage will almost certainly vary from the EPA estimates.
We have documented your concerns, and have forwarded them to the appropriate personnel for further review.