Hyundai today announced that it has
entered into an agreement with the
U.S. Environmental Protection
Agency (EPA) and California Air
Resources Board (CARB) to resolve
the government’s investigation of
its 2012 restatement of fuel economy
ratings. The adjustment affected
approximately one-quarter
of Hyundai 2011-13 model year vehicles,
reducing their combined city/highway
fuel economy by 1-2 miles per gallon (mpg). As part of the agreement, Hyundai
will pay a $56.8 million civil penalty, forgo the use of approximately 2.7 million
greenhouse gas (GHG) emission credits – the credits representing the difference
between original and restated emission data – and continue to implement a
series of measures including the formation of an independent certification test
group to oversee the automaker’s fuel economy testing, training, data
management and reporting. Additionally, Hyundai will continue to audit model
year 2015-16 vehicles to confirm the accuracy of their fuel economy ratings.
entered into an agreement with the
U.S. Environmental Protection
Agency (EPA) and California Air
Resources Board (CARB) to resolve
the government’s investigation of
its 2012 restatement of fuel economy
ratings. The adjustment affected
approximately one-quarter
of Hyundai 2011-13 model year vehicles,
reducing their combined city/highway
fuel economy by 1-2 miles per gallon (mpg). As part of the agreement, Hyundai
will pay a $56.8 million civil penalty, forgo the use of approximately 2.7 million
greenhouse gas (GHG) emission credits – the credits representing the difference
between original and restated emission data – and continue to implement a
series of measures including the formation of an independent certification test
group to oversee the automaker’s fuel economy testing, training, data
management and reporting. Additionally, Hyundai will continue to audit model
year 2015-16 vehicles to confirm the accuracy of their fuel economy ratings.
“Hyundai has acted transparently, reimbursed affected customers and fully
cooperated with the EPA throughout the course of its investigation,” said David
Zuchowski, president and CEO of Hyundai Motor America. “We are pleased to
put this behind us, and gratified that even with our adjusted fuel economy ratings, Hyundai continues to lead the automotive industry in fuel efficiency and environmental
performance.”
cooperated with the EPA throughout the course of its investigation,” said David
Zuchowski, president and CEO of Hyundai Motor America. “We are pleased to
put this behind us, and gratified that even with our adjusted fuel economy ratings, Hyundai continues to lead the automotive industry in fuel efficiency and environmental
performance.”
According to the EPA Fuel Economy Trends Report, Hyundai’s adjusted fuel
economy ratings are 27.2 mpg for 2011, 28.3 mpg for 2012 and 29.0 mpg
for 2013 model year vehicles.[1] Similarly, the Union of Concerned Scientists
recently named Hyundai the “Greenest Automaker” for the 2013 model year
based on emissions of nitrogen oxide, non-methane organic gas and CO2.
economy ratings are 27.2 mpg for 2011, 28.3 mpg for 2012 and 29.0 mpg
for 2013 model year vehicles.[1] Similarly, the Union of Concerned Scientists
recently named Hyundai the “Greenest Automaker” for the 2013 model year
based on emissions of nitrogen oxide, non-methane organic gas and CO2.
Importantly, Hyundai believes its process for testing the fuel economy of its
vehicles is consistent with government regulations and guidance, which afford
broad latitude to vehicle manufacturers in determining test conditions. Outside
of a data processing error related to the coastdown testing method by which
Hyundai calculated resistance or “road load,” it was Hyundai’s regulatory
interpretation within this broad latitude that was responsible for the ratings
restatement. Hyundai has corrected the error, and the EPA in October 2012
approved the automaker’s new fuel economy testing program.
vehicles is consistent with government regulations and guidance, which afford
broad latitude to vehicle manufacturers in determining test conditions. Outside
of a data processing error related to the coastdown testing method by which
Hyundai calculated resistance or “road load,” it was Hyundai’s regulatory
interpretation within this broad latitude that was responsible for the ratings
restatement. Hyundai has corrected the error, and the EPA in October 2012
approved the automaker’s new fuel economy testing program.
Over the past 30 years, the EPA has acknowledged the variability of its
coastdown testing,[2] and currently is working to develop new guidance
for the industry in order to improve its precision, repeatability and accuracy.
coastdown testing,[2] and currently is working to develop new guidance
for the industry in order to improve its precision, repeatability and accuracy.
“Hyundai is committed to partnering with the government to innovate fuel
economy testing procedures in order to achieve more accurate and reliable
‘real-world’ results for consumers,” said Zuchowski.
economy testing procedures in order to achieve more accurate and reliable
‘real-world’ results for consumers,” said Zuchowski.
There is no environmental impact resulting from Hyundai’s fuel economy
ratings restatement, and the automaker will continue to hold a surplus of
GHG credits – approximately 20 million – following implementation of today’s
settlement. To compensate the national program to reduce GHG emissions
and improve fuel economy, Hyundai will amend the GHG reports it submitted
to the EPA before understanding that its interpretation of industry test
procedures differed from the government’s reading of the same procedures.
ratings restatement, and the automaker will continue to hold a surplus of
GHG credits – approximately 20 million – following implementation of today’s
settlement. To compensate the national program to reduce GHG emissions
and improve fuel economy, Hyundai will amend the GHG reports it submitted
to the EPA before understanding that its interpretation of industry test
procedures differed from the government’s reading of the same procedures.
About Hyundai’s Fuel Economy Restatement and Customer
Reimbursement Program
Reimbursement Program
On November 2, 2012, Hyundai announced the voluntary adjustment of fuel
economy ratings for approximately one-quarter of its 2011-13 model year
vehicles, reducing their combined city/highway fuel economy by 1-2 miles per
gallon, and relabeled affected vehicles still in dealer showrooms. In order to
compensate affected customers, Hyundai provided a lifetime reimbursement
program to cover the additional fuel costs associated with the rating change
plus a 15 percent premium in acknowledgment of the inconvenience. The
majority of customers affected by the ratings restatement enrolled in the
automaker’s reimbursement program and are being compensated based
on their actual mileage and the fuel costs for the region in which they live.
While customers responded favorably to the reimbursement program, Hyundai
through a recent class action settlement offered the option of a single lump
sum cash payment for those customers who would rather not return to a
dealership to have their mileage verified. So, through either the one-time
lump sum payment or original lifetime reimbursement program, customers
have the option of being made fully whole for Hyundai’s ratings restatement.
economy ratings for approximately one-quarter of its 2011-13 model year
vehicles, reducing their combined city/highway fuel economy by 1-2 miles per
gallon, and relabeled affected vehicles still in dealer showrooms. In order to
compensate affected customers, Hyundai provided a lifetime reimbursement
program to cover the additional fuel costs associated with the rating change
plus a 15 percent premium in acknowledgment of the inconvenience. The
majority of customers affected by the ratings restatement enrolled in the
automaker’s reimbursement program and are being compensated based
on their actual mileage and the fuel costs for the region in which they live.
While customers responded favorably to the reimbursement program, Hyundai
through a recent class action settlement offered the option of a single lump
sum cash payment for those customers who would rather not return to a
dealership to have their mileage verified. So, through either the one-time
lump sum payment or original lifetime reimbursement program, customers
have the option of being made fully whole for Hyundai’s ratings restatement.
Statement From Kia
“Kia Motors is a responsible company, and the agreement with the U.S.
Environmental Protection Agency is the result of good-faith efforts among the
parties to resolve our issues. We are pleased to have this matter behind us,
and our priority remains making things right for our customers through our
fair and transparent reimbursement program which remains in effect and
unchanged by this settlement. Please visit www.KiaMPGinfo.com for the
latest information.”
Environmental Protection Agency is the result of good-faith efforts among the
parties to resolve our issues. We are pleased to have this matter behind us,
and our priority remains making things right for our customers through our
fair and transparent reimbursement program which remains in effect and
unchanged by this settlement. Please visit www.KiaMPGinfo.com for the
latest information.”
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