Hyundai, Kia Overstated Gas Mileage

An EPA inquiry that revealed that Hyundai and Kia had overstated the fuel efficiency of 900,000 automobiles could cost the companies hundreds of millions of dollars over the next few years.

The EPA routinely tests vehicles to make sure their performance matches company specifications. In the Hyundia and Kia matter announced today, the mileage numbers will be adjusted mostly by 1 to 2 mpg, with the largest adjustment being 6 mpg for the Kia Soul, according to the EPA. The adjustments affect 35% of 2011-1013 model year vehicles sold through October, according to the companies.The 2012 Hyundai/Kia fleet fuel economy will drop from 27 mpg to 26 mpg.

"Consumers rely on the window sticker to help make informed choices about the cars they buy," said Gina McCarthy, assistant administrator for EPA's Office of Air and Radiation. "EPA’s investigation will help protect consumers and ensure a level playing field among automakers." 

Hyundai and Kia are affiliated companies, announcing in a joint press release that "procedural errors" at their joint test operations in Korea led to the incorrect fuel economy ratings. 

"Given the importance of fuel efficiency to all of us, we're extremely sorry about these errors,” John Krafcik, president and CEO of Hyundai Motor America, is quoted as saying in the car companies' press release. "When we say to Hyundai owners, 'We’ve got your back,' that’s an assurance we don't take lightly." 

The companies will reimburse car owners for the extra gas guzzling via a debit card with an amount based on the fuel price in their area and the miles they have driven. They will also tack on 15% for the inconvenience.

As an example, a Californian Hyundai owner who drives 15,000 a year and gets 1 MPG less than expected would receive $100 this year.Owners nationwide will continue to receive annual payments for as long as they own their cars.

Doing the math using the California example, that could mean more than $90 million a year for the two companies if all 900,000 affected owners opt in. 

For additional information, visit and

Justin Loiseau has no positions in the stocks mentioned above. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo.

The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2092163, ~/Articles/ArticleHandler.aspx, 10/26/2016 5:22:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 8 hours ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes