The US Department of Justice has concluded its investigation into Hyundai and Kia, after the South Korean manufacturers agreed to pay more than $350 million for exaggerating the fuel economy of their vehicles.
They will pay a $100 million civil penalty, spend $50 million to establish an independent fuel-economy certification group and forfeit 4.75 million ‘greenhouse gas’ emission credits — estimated to be worth more than $200 million — that they had ‘banked’ with the US Environmental Protection Agency.
US Attorney General Eric Holder issued a statement that said: “This unprecedented resolution with Hyundai and Kia underscores the Justice Department’s firm commitment to safeguarding American consumers, ensuring fairness in every market-place, protecting the environment and pursuing companies that make misrepresentations.
"We will never waver in our determination to take action against any company that engages in such activities — whenever and wherever they are uncovered.”
EPA Administrator Gina McCarthy said: “The size of the settlement is a reflection of the unfair market advantage that Hyundai and Kia captured by overstating their fuel economy ratings.
"Because of the importance of fuel economy as a purchase consideration, overstating fuel-economy figures tilts the market in favour of those who don’t ‘play by the rules’ and disadvantages those that do. That’s simply not fair; it’s also not legal.”