Hyundai, Kia try to rebound from misstated gas mileage

TALLAHASSEE, FL - Car makers Hyundai and Kia admit to overstating the potential gas mileage of one-third, or 900,000, of their cars sold in the United States in the past two years.

This comes at a time when car companies, both foreign and domestic, are in a heated race to provide the most fuel-efficient vehicles and to smear their competitors’ attempts at reaching the coveted 40 miles per gallon that has become the new norm for gas mileage.

The companies, both owned by Hyundai Motor Group, came under scrutiny by the Environmental Protection Agency after complaints were received from several customers about the failure of their vehicles to perform at the window-listed efficiency. Further tests by the EPA revealed that several models were under-performing.

Hyundai cars awaiting shipment from S. Korea/The New York Times

                                                       

“Although it took more than a year, the E.P.A. did catch the discrepancies,” said auto research analyst John O’Dell.

The companies both placed blame on errors in testing procedures that check aero-dynamics, drag and fuel used to drive the wheels and engine. The cars ran on average six MPG less than the advertised rate.

Eleven models will have their rating stickers changed including more popular models like the Hyundai Elantra and the Kia Rio. The Kia Soul had the most drastic change; for the 2012 and 2013 models, the highway mileage rating dropped at least five points for each version of the car.

“Given the importance of fuel efficiency to all of us, we’re extremely sorry about these errors,” said John Krafcik, the chief executive of Hyundai’s American operations.

In addition to apologizing for the misrepresentation, the corporations will begin offering reimbursements for the fuel and money lost.

They will determine the amount of money lost by reading customers’ odometers and calculating the increased spending compared to the amount customers would have spent according to the mileage averages listed. A 15 percent inconvenience fee will also be attached.

Calls placed to Hyundai America's communications department were not returned.

Customers can expect an average of $88 to be credited to a debit card, a number based on a car with 15,000-miles that was overstated by 1 MPG on the window sticker.

The companies now face rebuilding their reputations in an industry where perception can be a big factor in the success of new models. Both are beginning to run ads restating the gas mileage of their vehicles and acknowledging their mistakes as well as replacing the window stickers on remaining models.

“In an industry where reputation is so important, this will undoubtedly give both car makers ugly black eyes,” O’Dell said.

Hyundai officials have not totaled the amount that will be paid out, but it has been estimated in the tens of millions of dollars.

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By Karl Etters

With contributions from The New York Times

Photo, The New York Times

Video, consumerwatchdog

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