by STEVE HAN
South Korean automakers Hyundai and Kia will pay a combined $100 million in civil penalty for overstating the gas mileage on 1.2 million vehicles, according to the Environmental Protection Agency (EPA).
The fine for the two companies marks the largest civil penalty in the Clean Air Act history, according to a joint statement by the EPA and U.S. Justice Department. In addition to the fine, Hyundai and Kia have agreed to forfeit greenhouse gas emission credits worth over $200 million, and spend $50 million to work on preventing future violations, according to terms of the voluntary consent decree.
“This unprecedented resolution with Hyundai and Kia underscores the Justice Department’s firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law,” said Attorney General Eric Holder.
The vehicles involved are the Hyundai Accent, Elantra, Veloster and Santa Fe and the Kia Rio and Soul from the model years 2012 and 2013. In addition to the alleged misstatements of greenhouse gas emissions submitted to the EPA, the government agencies said that “Hyundai and Kia gave consumers inaccurate information about the real-world fuel economy performance of many of these vehicles,” overstating the fuel economy “by one to six miles per gallon, depending on the vehicle.”
Hyundai and Kia are both owned by Hyundai Motor Group, but operate independently in the United States even though fuel testing is held jointly at a laboratory in South Korea. Hyundai said that the discrepancy in gas mileage stemmed from its interpretation of test procedures differing from that of the EPA’s. Chris Hosford, a spokesman for Hyundai, was quoted in the New York Times as saying in an emailed statement: “To be clear, Hyundai’s view is that this was an honest mistake and there was a lack of clarity/broad latitude in E.P.A. rules and guidance that resulted in the issues outlined by the government.”
“Hyundai has acted transparently, reimbursed affected customers and fully cooperated with the EPA throughout the course of its investigation,”
David Zuchowski, president and chief executive of Hyundai Motor America, was quoted in the Washington Post as saying that Hyundai has “acted transparently, reimbursed affected customers and fully cooperated with the EPA. 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.”
In order to avoid such issues in the future, Hyundai and Kia have agreed to revise their test protocols before conducting emissions testing to certify their 2017 cars. They are also being required to audit their vehicles for model years 2015 and 2016 to make sure they conform to the specifications provided to the EPA, according to the agency.
Featured photo via Kia
