Hyundai Motor Corp. and sister automaker Kia Motors will compensate consumers through the end of 2013 or longer who were negatively impacted by mpg overstatement on window stickers, reports The Detroit News. In letters to Virginia senator and Commerce Committee chair Jay Rockefeller in November 2012, the Korean automakers announced their intent to compensate 1.1 million vehicle owners in North America.
Dealers will be compensated by Hyundai group
According to the letters to Sen. Rockefeller, Hyundai and Kia will provide compensation for dealers that have taken part in the fuel efficiency mpg program. Furthermore, owners won’t be forced to waive legal rights to program participation, notes The Detroit News. No release of waiver will be required. Last month, Hyundai and Kia announced that approximately 1.1 million US vehicle owners will be reimbursed.
Of the nearly 1.1 million Hyundai and Kia owners in North America who will receive reimbursement as a result of the mpg overstatement on window stickers, approximately 900,000 of them will come from the U.S. The mpg overstatement issue was first revealed when the Environmental Protection Agency found discrepancies between the mpg claims on window stickers versus the observed results in drive tests conducted by EPA officials. The investigation is ongoing, and civil penalties may be assessed as punishment for the mpg overstatement.
Get thee to a dealership
For as long as consumers own Hyundai and Kia vehicles in question, they will be compensated for overstated fuel efficiency, plus as additional 15 percent premium. For the sake of numbers, Hyundai gave an example to the automotive press of a typical vehicle driven in Florida. At 15,000 miles per year, the owner could receive an $88 refund, as well as potential future refunds for as long as they own the vehicle. Odometer readings must be taken at a dealership in order for the mpg overstatement reimbursement to occur.
On Dec. 10, Hyundai noted in a written statement to Sen. Rockefeller that owners would have until December 2013 to register via www.hyundaimpginfo.com. The automaker conceded as well that the date could be adjusted to later, “based on consumer response.”
Kia spokesman Scott McKee said Kia would also extend the reimbursement program if necessary.
“We are aligned with Hyundai in essentially the same program,” he said.
Average mpg overstatement compensation
On average, Hyundai and Kia will pay dealers $10 for each odometer reading conducted as part of the program. Kia is reportedly giving dealers a “goodwill provision payment of $100 times their average 2012 monthly new Kia volume through October,” amounting to a minimum of $1,000 per Kia dealership.
It is believed that the new reimbursement program will cost Hyundai and Kia upwards of $100 million. The dealer odometer readings will cost $10 million alone each year.
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Hyundai and Kia correct window stickers
Fleet-wide, Hyundai and Kia will correct the listed fuel economy of vehicles down from an average of 27 mpg to 26 mpg. On an individual vehicle basis, the drop in published fuel efficiency will be as much as 6 mpg, depending upon the vehicle model in question. For most vehicles, the combined city-highway rating will drop by about 1 mpg.
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