Hyundai And Kia To Pay $100 Million For Overstating MPGs On About One-Third Of Models
WASHINGTON (AP) — Korean automakers Hyundai and Kia will pay the U.S. government a $100 million civil penalty to end a two-year investigation into overstated gas mileage figures on window stickers of 13 models.
The penalty, announced Monday by the Justice Department and Environmental Protection Agency, could serve as a precedent for other automakers who violate the Clean Air Act.
Also as part of the settlement, Hyundai-Kia must audit test results on current models, and it must set up an independent group to certify future test results, at a cost of around $50 million. And they must give up greenhouse gas credits worth more than $200 million. The credits could have been sold to other automakers who aren’t meeting emissions standards.
“Businesses that play by the rules shouldn’t have to compete with those breaking the law,” EPA Administrator Gina McCarthy said in a statement. “This settlement upholds the integrity of the nation’s fuel economy and greenhouse gas programs.”
The companies, which are both owned by Hyundai and generally sell different versions of the same models, denied allegations that they violated the law. Hyundai blamed the inflated mileage on honest misinterpretation of the EPA’s complex rules governing testing. Both companies said they are paying the —> Read More Here