Hyundai, Kia Reach $400M Class Action Settlement Over MPG Claims

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South Korean automakers Hyundai Motor Co. and Kia Motors Corp. announced that they have reached a combined $400 million settlement in a class action lawsuit alleging that they inflated the fuel economy data for their vehicles.

The Hyundai vehicles included in the class action settlement are the Accent, Elantra, Veloster, Veloster Turbo, Sonata Hybrid, Azera, Genesis, Tucson and Santa Fe Sport. The Kia vehicles affected include the Rio, Sportage, Sorento, Soul and Optima hybrid.

Both companies admitted to inflating the fuel economy data for an estimated 600,000 Hyundai and 300,000 Kia vehicles. Hyundai is expected to pay out $210 million, depending on how Class Members would take their payment, which can be as a lump sum or through a lifetime reimbursement program based on restated mileage numbers from November 2012. Kia, on the other hand, is projected to pay out $185 million. This would bring the total cost for the two companies to about $400 million.

Each Kia owner covered by the class action settlement may receive an average lump sum of $667, while Hyundai owners are expected to receive an average payout of $353. Payment may still vary based on whether the vehicle was purchased or leased.

Owners may also decline and stay on an earlier plan where special debit cards were issued by the automakers to reimburse for the difference in mileage. Owners are required to report their actual usage to their local dealers.

Another option is dealership credit of 150% of the lump sum cash payment for service or repairs. Class Members may also avail of 200% of the cash amount toward the purchase of a new Hyundai or Kia vehicle.

Early this year, the automakers made public apologies, calling the discrepancies in fuel economy data as “procedural errors.” Consumers allege in the class action lawsuit that Hyundai and Kia “knowingly or recklessly exaggerated estimated gas mileage and fuel economy rating information… In order to entice” consumers into buying the vehicles.

Since the discovery, Kia and Hyundai have changed the window stickers of most of their models to reflect the actual fuel economy of the vehicles. The Elantra lost two miles per gallon, while the Hyundai Santa Fe went from 33 mpg to 29 mpg. The 2013 Kia Soul lost six from its highway figure, lowering it from 34 mpg to 28 mpg.

A federal court in Los Angeles is expected to rule on the proposed Hyundai Kia class action settlement in early 2014.

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The consolidated Hyundai/Kia Mileage Class Action Lawsuit case is In Re: Hyundai and Kia Fuel Economy Litigation, MDL 2424, in the U.S. Judicial Panel on Multidistrict Litigation.

UPDATE 1: 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 2: 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 3: 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.