MPG PAYMENTS SET FOR HYUNDAI, KIA
Federal agencies have arranged a second payback of an estimated $400 million for overstated fleet miles-per-gallon averages on Hyundai and Kia late-model cars.
Hyundai owners will receive a lump-sum average of $353, while Kia owners will be eligible for $667, depending on whether their cars were purchased or leased.
Owners also can decline each offer and remain on an earlier plan offered by the Environmental Protection Agency in 2012. Special debit cards were issued, including a dealership credit of 50% of the lump sum cash usable on repairs or 200% toward purchase of a new Hyundai or Kia vehicle.
About 600,000 Hyundai vehicles would be covered by the dialback, and 300,000 Kias.
The plan has been submitted to a Federal District Court in Los Angeles, with a deadline of early 2014.
Nearly one million Hyundai and Kia vehicles were covered by the overstatement admissions, which were discovered by the Environmental Protection Agency, which monitors fleet mileage averages.
Hyundai and Kia executives blamed “procedural errors” in Korea for the erratic MPG averages. Executive Vice-President John Yoon said the proposed settlement “enhances the goal of making things right for our customers.”
However, several owners have filed suits against Hyundai Motors and Kia Motors alleging that the settlement offers were still “too inadequate.”