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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.
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65 thoughts onHyundai, Kia Reach $400M Class Action Settlement Over MPG Claims
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.
OBJECTING TO THE HYUNDAI-KIA PROPOSED fuel economy settlement. The proposed settlement has NOT been approved by the court yet and is set for hearing in March or April. You can object to the HYUNDAI – KIA class action proposed settlement. if you don’t like any part of it. You should give reasons why you think the court should not approve it. Mention In re Hyundai and Kia Fuel Economy Litigation No. MDL 13-2424-GW (C.D. Cal.). Be sure to include your name, address, telephone number, signature, and if applicable Vehicle Vin number. Mail your letter to these three addresses: Clerk of the Court, United States District Court Central District of California, 255 East Temple St., Los Angeles, CA 90012–3332; Robert B. Carey, Hagans Berman Sobel Shapiro LLP, 11 West Jefferson St., Suite 1000, Phoenix, AZ 85003, Michael L. Kidney, Hogan Lovells US LLP, 555 Thirteenth Street NW, Washington DC 20004. COURT DOCUMENTS CAN BE SEEN ON THE SITE PACER.GOV. Also see the site attorney-ethics-elderly-abuse.com for updates on the class action.
if people object it will only delay payments to owners. I think owners would rather get $350 to $600. it is better than nothing
Hey JAY, this settlement is an insult and a joke. I have gone through every Govt agency and have hit a brick wall. No one wants to do the right thing. Just BS, easy, simple settlement with Hyundai Scum, sweep it under the carpet and move on. This is a travesty of justice! Hyundai owes me a full refund for selling me a car that does not exist. They could have done that if they had not spent the money on attorney and legal fees to fight this. I am forced to pay for it because a spineless US govt. How much did the attorneys net? My taxes paid for my shafting…wow what a fool I am…I pay for a system that does not protect me, our system blows and we just take it. I have learned a very hard lesson.
I agree.
Ha Ha.. We want to see ya in a Keia, serves ya right for buying a foreign car. and then you wonder why the economy is going in the toilet . fools
Hey to all the Vets that fought for this our country the USA, I’m still thinking of YOU !
I have a 2012 Hyundai Veloster. WHERE TO I GET A CLAIM FORM TO FILL OUT TO GET SETTLEMENT?
There were possibly claim forms for the reimbursement program of last year that affected the 2011 Kia Optima etc. There are no claim forms yet for the present class action fuel economy because the court has to approve the settlement proposal and then the claim form, if any, will be provided, because there is talk of just sending out a check to car owners. The court is set to review the proposed settlement in March or April 2014. Then after that claim forms might be available. Compared to about $400 to class members, the actual plaintiffs may make about $10,000 estimated with lawyers making whopping fees in the hundreds of thousands or millions. Cash cow for the lawyers. The lawyers don’t have an incentive to push for loss vehicle value for the class members.
how do you know this?
I found this website…I think this might be the claim form (PDF file)…
https://hyundaimpginfo.com/assets/content/Hyundai_MPG_Claim_Form_Final_(110212).pdf
I bought the 2012 kia optima hybrid..i felt it was a rip off. the gas mileage was not much different that the 2009 kia optima I had. Anyone knows how to get a claim form yet?
I also have 2013 KIA OPTIMA,could I also get a claim form thank you.
we just bought a 2010 Hyundai Sonata on Oct 2013 do we qualify and if so were would I fill a claim ?
Where do I get a claim form?