Total cost of fuel economy blunder sits at over $800 million USD
Yesterday, during a joint conference held by members of the Environmental Protection Agency and the US Department of Justice, it was announced Hyundai and Kia had agreed to pay a $100 million USD civil penalty and incur other monetary costs.
The fines are in response to the two Korean automakers overstating fuel economy on a number of models marketed in the United States.
The settlement states Hyundai and Kia will pay $100 million USD in general penalties, $50 million USD toward establishing an independent fuel consumption certification body, and forfeit approximately 4.75 million greenhouse gas credits valued at around $200 million USD.
“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,” Attorney General Eric Holder said in a statement.
“This type of conduct quite simply will not be tolerated. And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities — whenever and wherever they are uncovered.”
The settlement comes after Hyundai and Kia agreed to end class actions in Canada and the United States to the tune of $69.65 million CAD and $395 million USD respectively, bringing the total cost of the fuel economy misstatements to over $800m USD to date.