Ever imagined an automobile manufacturer facing a lawsuit for claimed fuel economy figures? Well, not so lucky Hyundai and Kia find themselves at the receiving end of customers.
Hyundai and Kia USA jointly announced they would compensate a total of 395 million USD (Rs 2445 crore) to settle the lawsuits filed by distressed customers.The report claims Hyundai and Kia exaggerated their fuel-economy figures and some of their vehicles were scrutinized by EPA (Environmental Protection Agency) which found errors in 13 Hyundai and Kia products from the 2011 to 2013 model years.
In November 2012, Hyundai and Kia accepted they had over-rated the fuel-economy figures of their cars by at least 1 mpg (0.5 kpl). Hyundai confirmed a lump-sum payment would cost them about 210 million USD (Rs 1299 crore), whereas Kia had to pay 185 million USD (1145 crore). The average lump sum payment stands at 320 million deducting any previous reimbursements.
The total reimbursements will depend on the number of customers who opt for a one time settlement rather than a life-time reimbursement where owners will get a debit card to pay the difference between the actual fuel economy figures and the company’s bloated figures. Customers can also choose between a dealership credit of 150 per cent of the lump-sum cash payment or a credit of 200 per cent of the cash amount towards the purchase of a new vehicle.
The Indian car market is not as sizeable as its international counterparts, but we are growing too, reports of distressed customers are seldom reported and only a few end up filing a lawsuit against manufacturers.
Source : Carscoops