Hyundai, Kia admit to overstating fuel economy
12-25-13, 01:18 PM
#61
Issue Resolved
Official Press
HYUNDAI MOTOR AMERICA RESOLVES LITIGATION FOLLOWING RESTATEMENT OF FUEL ECONOMY RATINGS
Automaker Provides Alternative Choice of Single "Lump Sum" Payment To Take Care of Affected Owners
ORANGE COUNTY, Calif., December 23, 2013 – Hyundai Motor America today announced that it has entered into an agreement with current and former owners and lessees of vehicles affected by the automaker's November 2012 restatement of fuel economy ratings. The adjustment affected approximately 27 percent of Hyundai 2011-13 model year vehicles, reducing their combined city/highway fuel economy by 1-2 mpg. While today's settlement agreement is valued at up to approximately $210 million, that number is dependent on how many customers elect to participate in the settlement's one-time lump sum payment option or remain in the lifetime reimbursement program Hyundai introduced at the time of the restatement.
"We are pleased with the proposed settlement," said W. Gerald Flannery, general counsel of Hyundai Motor America. "It demonstrates the ongoing Hyundai commitment to taking care of its customers."
At the time of the restatement in 2012, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change – plus a 15 percent premium in acknowledgment of the inconvenience to customers. Affected owners and lessees are compensated based on their actual mileage and the fuel costs for the region in which they live.
"Customers responded favorably to the original reimbursement program," added Flannery. "Today's settlement is designed to provide them with an option, again intended to make customers fully whole for Hyundai's fuel economy ratings restatement."
To address plaintiffs' claims including the requirement to return to a dealership for mileage verification, which plaintiffs felt could deter participation in the reimbursement program, Hyundai agreed to add a lump sum payment option. The proposed cash lump sum amount, which varies by vehicle model and ownership type, will result in an average estimated payment of $353 to Hyundai owners and lessees. For example, an owner of a 2012 Elantra would receive a lump sum payment of $320 minus any previous reimbursement payments. Affected Hyundai owners may elect the one-time lump sum cash payment or remain in the automaker's lifetime reimbursement program; the choice is theirs. Consumers can also elect other options, such as a dealership credit of 150 percent of the lump sum cash payment amount, or a credit of 200 percent of the cash amount toward the purchase of a new Hyundai vehicle.
"Hyundai's willingness to create a way for its customers to receive all of their future extra fuel expenses in a lump sum shows they are serious about making things right for their customers," said Rob Carey, a Hagens Berman partner working on the case. "Hyundai stepped up – and its customers will now get a full recovery without the inconvenience of repeated dealership visits and paperwork."
The Court is expected to review the proposed settlement for preliminary approval in early 2014. Assuming preliminary approval is granted, notices will be sent to individual class members. Initial details of the settlement are available now at www.hyundaimpginfo.com. A more in-depth website dedicated to the settlement will be established following preliminary approval by the Court.
About Hyundai and Kia Fuel Economy Litigation, MDL No. 2424
Following disclosure of the fuel economy ratings discrepancy in November 2012, approximately 53 federal complaints were filed against Hyundai and Kia and later consolidated (In re: Hyundai and Kia Fuel Economy Litigation, MDL No. 2424) in United States District Court for the Central District of California before Judge George H. Wu.
About Hyundai Motor America
Hyundai Motor America, headquartered in Costa Mesa, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 820 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully-transferable new vehicle limited warranty, Hyundai's 10-year/100,000-mile powertrain limited warranty and five years of complimentary Roadside Assistance. Hyundai Assurance includes Assurance Connected Care that provides owners of Hyundai models equipped with the Hyundai Blue Link telematics system with proactive safety and car care services complimentary for three years. These services include Automatic Collision Notification, Enhanced Roadside Assistance, Vehicle Diagnostic Alert, Monthly Vehicle Health Report and in-vehicle service scheduling.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP represents consumers, workers, whistleblowers and investors in complex litigation. The firm has offices in nine cities and has been named one of the top plaintiffs' law firms in the country by the National Law Journal seven times. Founded in 1993, HBSS continues to successfully fight for consumer rights in class-action litigation. More about the law firm and its successes can be found at www.hbsslaw.com. Visit the firm's class-action law blog at www.classactionlawtoday.com.
Automaker Provides Alternative Choice of Single "Lump Sum" Payment To Take Care of Affected Owners
ORANGE COUNTY, Calif., December 23, 2013 – Hyundai Motor America today announced that it has entered into an agreement with current and former owners and lessees of vehicles affected by the automaker's November 2012 restatement of fuel economy ratings. The adjustment affected approximately 27 percent of Hyundai 2011-13 model year vehicles, reducing their combined city/highway fuel economy by 1-2 mpg. While today's settlement agreement is valued at up to approximately $210 million, that number is dependent on how many customers elect to participate in the settlement's one-time lump sum payment option or remain in the lifetime reimbursement program Hyundai introduced at the time of the restatement.
"We are pleased with the proposed settlement," said W. Gerald Flannery, general counsel of Hyundai Motor America. "It demonstrates the ongoing Hyundai commitment to taking care of its customers."
At the time of the restatement in 2012, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change – plus a 15 percent premium in acknowledgment of the inconvenience to customers. Affected owners and lessees are compensated based on their actual mileage and the fuel costs for the region in which they live.
"Customers responded favorably to the original reimbursement program," added Flannery. "Today's settlement is designed to provide them with an option, again intended to make customers fully whole for Hyundai's fuel economy ratings restatement."
To address plaintiffs' claims including the requirement to return to a dealership for mileage verification, which plaintiffs felt could deter participation in the reimbursement program, Hyundai agreed to add a lump sum payment option. The proposed cash lump sum amount, which varies by vehicle model and ownership type, will result in an average estimated payment of $353 to Hyundai owners and lessees. For example, an owner of a 2012 Elantra would receive a lump sum payment of $320 minus any previous reimbursement payments. Affected Hyundai owners may elect the one-time lump sum cash payment or remain in the automaker's lifetime reimbursement program; the choice is theirs. Consumers can also elect other options, such as a dealership credit of 150 percent of the lump sum cash payment amount, or a credit of 200 percent of the cash amount toward the purchase of a new Hyundai vehicle.
"Hyundai's willingness to create a way for its customers to receive all of their future extra fuel expenses in a lump sum shows they are serious about making things right for their customers," said Rob Carey, a Hagens Berman partner working on the case. "Hyundai stepped up – and its customers will now get a full recovery without the inconvenience of repeated dealership visits and paperwork."
The Court is expected to review the proposed settlement for preliminary approval in early 2014. Assuming preliminary approval is granted, notices will be sent to individual class members. Initial details of the settlement are available now at www.hyundaimpginfo.com. A more in-depth website dedicated to the settlement will be established following preliminary approval by the Court.
About Hyundai and Kia Fuel Economy Litigation, MDL No. 2424
Following disclosure of the fuel economy ratings discrepancy in November 2012, approximately 53 federal complaints were filed against Hyundai and Kia and later consolidated (In re: Hyundai and Kia Fuel Economy Litigation, MDL No. 2424) in United States District Court for the Central District of California before Judge George H. Wu.
About Hyundai Motor America
Hyundai Motor America, headquartered in Costa Mesa, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 820 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully-transferable new vehicle limited warranty, Hyundai's 10-year/100,000-mile powertrain limited warranty and five years of complimentary Roadside Assistance. Hyundai Assurance includes Assurance Connected Care that provides owners of Hyundai models equipped with the Hyundai Blue Link telematics system with proactive safety and car care services complimentary for three years. These services include Automatic Collision Notification, Enhanced Roadside Assistance, Vehicle Diagnostic Alert, Monthly Vehicle Health Report and in-vehicle service scheduling.
About Hagens Berman
Seattle-based Hagens Berman Sobol Shapiro LLP represents consumers, workers, whistleblowers and investors in complex litigation. The firm has offices in nine cities and has been named one of the top plaintiffs' law firms in the country by the National Law Journal seven times. Founded in 1993, HBSS continues to successfully fight for consumer rights in class-action litigation. More about the law firm and its successes can be found at www.hbsslaw.com. Visit the firm's class-action law blog at www.classactionlawtoday.com.
12-27-13, 09:56 AM
#62
Lexus Fanatic
Hyundai Motor America today announced that it has entered into an agreement with current and former owners and lessees of vehicles affected by the automaker's November 2012 restatement of fuel economy ratings.
At the time of the restatement in 2012, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change – plus a 15 percent premium in acknowledgment of the inconvenience to customers. Affected owners and lessees are compensated based on their actual mileage and the fuel costs for the region in which they live.
At the time of the restatement in 2012, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change – plus a 15 percent premium in acknowledgment of the inconvenience to customers. Affected owners and lessees are compensated based on their actual mileage and the fuel costs for the region in which they live.
(Not you, Hoovey, but the fact that Hyundai has to pay out this settlement)
Auto manufacturer and EPA fuel-economy ratings are very rough and generalized at best...and actual fuel mileage can be affected by by a number (or a number of more severe) factors that don't, or can't, enter into the official testing. Right now, for example, in the U.S., we're in the middle of winter, large parts of the country have been bitter cold, and cold is one of the greatest enemies of fuel mileage. People living in and around major cities also have to put up with extreme amounts of stop-and-go traffic (D.C. and Los Angeles are among the worst)...that affects gas mileage also, even more than the EPA's on city-driving test.
I don't think that auto manufacturers should be held liable for things that are beyond their control. Every time an auto company has to pay out fines or settlements like this, it has to recoup the money from somewhere else...usually in the form of higher prices on their vehicles. The public will pay for it later on when they go auto-shopping.
Last edited by mmarshall; 12-28-13 at 09:14 AM.
12-27-13, 03:21 PM
#63
Oh Hyundai. I'm so glad I bought the Camry hybrid over the Sonata hybrid. That vacuum cleaner of a mouth and lousy gas mileage. I knew those mpg numbers were horse dung. Motor Trend reported Hyundai's MPG problems during their car tests. I'm getting 40 mpg average. It's dropping cuz of winter tho . . .
http://www.motortrend.com/roadtests/...di_comparison/
We first clicked said pumps at Hyundai's proving ground in California City, out in the toasty Mojave Desert. Nearly 300 miles later, we were back at the proving ground to close our fuel logs. I wish I had better news for Hyundai, but its Sonata Hybrid, EPA-estimated to return 35 city/40 highway, mustered a disappointing 27.0 mpg observed, almost 10 mpg less than its hybrid foe from Toyota. What gives?
Read more: http://www.motortrend.com/roadtests/...#ixzz2oijFhq6u
Read more: http://www.motortrend.com/roadtests/...#ixzz2oijFhq6u
12-27-13, 04:00 PM
#65
Lexus Champion
CR recently reported that 55% of the hybrids they tested missed their EPA estimates. 20% of small turbos missed theirs, and just 10% of conventional gas engine cars missed theirs.
12-28-13, 09:15 AM
#66
Lexus Fanatic
It doesn't make any difference whether it is a Sonata or a Camry. The same factors I listed above apply to both...and to most other cars.
12-28-13, 09:20 AM
#67
Lexus Fanatic
Actually, in my own experience over the years, I found that the EPA Highway mileages are usually easily achievable...sometimes several MPG more. It is the City MPGs that really seem to be tough to duplicate....perhaps because the EPA testing doesn't truly simulate the enormous amount of stop and go driving that we do each day in our cars, in the traffic around major cities.
12-28-13, 09:49 AM
#68
I think the biggest attribute to fuel economy in the last decade or so, is the introduction of automatic transmissions with more gears. Now many economy cars are available with 6 speed transmission, and in the past these same class of cars were usually equipped with 4 speed - and that attributes to much, much better fuel mileage.
My 2013 Mazda 3 is getting roughly the same fuel mileage as my 1995 Honda Civic used to get - despite having .5 liter extra displacement, 50 more hp, and being a heavier, bigger car with more standard equipment. I think its mostly thanks to the excellent 6 speed transmission which allows for the engine to revolve under 2,000 rpm at highway speeds.
My 2013 Mazda 3 is getting roughly the same fuel mileage as my 1995 Honda Civic used to get - despite having .5 liter extra displacement, 50 more hp, and being a heavier, bigger car with more standard equipment. I think its mostly thanks to the excellent 6 speed transmission which allows for the engine to revolve under 2,000 rpm at highway speeds.
12-28-13, 10:33 AM
#69
Lexus Fanatic
I think the biggest attribute to fuel economy in the last decade or so, is the introduction of automatic transmissions with more gears. Now many economy cars are available with 6 speed transmission, and in the past these same class of cars were usually equipped with 4 speed - and that attributes to much, much better fuel mileage.
My 2013 Mazda 3 is getting roughly the same fuel mileage as my 1995 Honda Civic used to get - despite having .5 liter extra displacement, 50 more hp, and being a heavier, bigger car with more standard equipment. I think its mostly thanks to the excellent 6 speed transmission which allows for the engine to revolve under 2,000 rpm at highway speeds.
My 2013 Mazda 3 is getting roughly the same fuel mileage as my 1995 Honda Civic used to get - despite having .5 liter extra displacement, 50 more hp, and being a heavier, bigger car with more standard equipment. I think its mostly thanks to the excellent 6 speed transmission which allows for the engine to revolve under 2,000 rpm at highway speeds.
Or the most part, I find the upper gears of many 7, 8, and 9-speed transmissions simply overkill for American driving conditions and speed limits. On the German Autobahn's unlimited-speed areas, though, that's a different story.
12-28-13, 10:52 AM
#70
Those tall gears are useful for good MPG and lower engine noise/wear as long as you are going fast enough that the engine isn't lugging. Lugging the engine, though, can not only work against gas mileage, but also put stresses on the engine's internals (particularly the crankshaft), cause spark pinging/knocking if the computer doesn't retard the spark timing enough, and, if accumulated over time, shorten the engine's life.
Or the most part, I find the upper gears of many 7, 8, and 9-speed transmissions simply overkill for American driving conditions and speed limits. On the German Autobahn's unlimited-speed areas, though, that's a different story.
Or the most part, I find the upper gears of many 7, 8, and 9-speed transmissions simply overkill for American driving conditions and speed limits. On the German Autobahn's unlimited-speed areas, though, that's a different story.
12-28-13, 11:03 AM
#71
Lexus Fanatic
Incorrect. Some automatics don't automatically downshift when they should (or under ideal conditions to prevent lugging). Fortunately, the vast majority of them today have a Sport-Shift/manual control function, either with the shift lever itself or with steering-column paddles.
12-28-13, 11:19 AM
#73
I4's / I5:
http://www.motortrend.com/roadtests/...t/viewall.html
MT Fuel Economy 27.6 mpg 34.1 mpg 31.6 mpg (Sonata, Camry, Passat)
Hybrid's / Diesel:
http://www.motortrend.com/roadtests/...n/viewall.html
MT Fuel Economy 27.0 mpg 36.9 mpg 34.3 mpg (Sonata, Camry, Passat)
Turbo 4 / V6's:
http://www.motortrend.com/roadtests/...n/viewall.html
MT Fuel Economy 23.3 mpg 24.7 mpg 23.0 mpg (Sonata, Camry, Passat)
12-28-13, 11:27 AM
#74
Incorrect. Some automatics don't automatically downshift when they should (or under ideal conditions to prevent lugging). Fortunately, the vast majority of them today have a Sport-Shift/manual control function, either with the shift lever itself or with steering-column paddles.
There's a better solution for lugging though. It's called torque.
12-28-13, 11:35 AM
#75
Lexus Fanatic