Hyundai and its sister company Kia said Monday that they will pay up to $395 million to consumers as part of a proposed settlement over overstated gas mileage.
The Environmental Protection Agency found inflated numbers on 13 Hyundai and Kia vehicles in November of 2012.
Hyundai and Kia acknowledged the problem, changed the fuel economy numbers and blamed a procedural error. Since then, Hyundai and Kia have been compensating owners with payments of around $88 annually, which is based on the amount the mileage was overstated and the average price of gasoline.
Hyundai Motor Co. and Kia Motors are also offering an option of a lump-sum payment. The companies put a figure to it Monday, saying Hyundai would pay up to $210 million and Kia up to $185 million. The total value depends on how many consumers opt for the one-time payment instead of the annual reimbursement.
The companies say the lump-sum payment amount varies but would average $353 per Hyundai owner and lessees and $667 for Kia.
Consumers also have a choice of a dealership credit.
The vehicles involved include the Hyundai Azera, Accent, Genesis, Santa Fe, Sonata Hybrid, Tucson and Veloster and the Kia Optima Hybrid, Rio, Sorento, Soul and Sportage.
The settlement still needs court approval, which the companies anticipate seeking in early 2014.
The Motley Fool has no position in any of the stocks mentioned. 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.