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Hyundai, Kia admit to overstating fuel economy

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Old 11-10-12, 11:08 AM
  #46  
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Exclamation The Secret Revealed


Last Friday, following an investigation by the Environmental Protection Agency, Hyundai Motor Group admitted it had overstated the fuel economy of 900,000 vehicles sold in the United States over the last 2 years. But for many Hyundai and Kia owners, the company was merely stating the obvious.

There had been grumbling in online forums, like Edmunds.com and others, that Hyundai was playing games with the E.P.A. testing cycle.

One reads: “Bought 2012 Elantra based on 33 m.p.g. average. After 1,000 miles I do not get 23 m.p.g. Have reported this problem to Hyundai and heard all excuses!”

Another reads: “I’ve clocked 9,000 km in the past 10 months I’ve owned this car. I get an average 24 m.p.g. (mostly city driving), which is nowhere near the figures quoted by Hyundai. This is false advertising through and through!”

Mark Gordon of Whitestone, Queens, 58, a manufacturer’s representative who sells bridal gowns, was so disappointed with the fuel economy of the 2012 Elantra he bought last year and with Hyundai’s response to his complaints, that he created his own Web site, my2012HyundaiElantragetslousygasmileage.com.

The Elantra is rated at 29 miles per gallon city, 40 highway and 33 m.p.g. combined. Mr. Gordon said he and his wife were lucky to get 22 m.p.g. over all.

When he called Hyundai to complain, “They told me I didn’t know how to drive. They were obviously working from a script because I got many e-mails from people all across the country saying they were also getting 22 m.p.g. And they would go to the dealer, and they were told they don’t know how to drive.”
Because of complaints, he said Hyundai took him for a ride with an engineer. “They told me I drove too fast and that you could not let the r.p.m.’s go over 2,000. He never went into the fast lane, he always drove at 50, but when you are doing this at 2,000 r.p.m.’s, it takes you a half an hour to get up to 50 and it was an extremely unsafe way to drive.”

They were able to get it to 35 m.p.g. he said and every time it went over 35 they took a picture of the fuel economy read-out on the dashboard, making him feel like a liar, he said.
A self-described loyal Hyundai owner – he has had 6 or 7 – he contrasts driving the Elantra with driving his 2010 Chevrolet HHR, which he said is rated at 20 m.p.g. city and 30 highway.

“I get 25 m.p.g. over all no matter what I do; and on the highway I get 30 m.p.g.,” he said. “I hit the number on the mark. I don’t have to watch what the r.p.m.’s are; I don’t have to watch whether I’m doing 70 or 30.”

Barry Koopersmith said he had trouble achieving stated mileage on the 2011 Elantra GLS that he bought in March 2011. Mr. Koopersmith, 61, an information systems manager who lives in Merrick, N.Y., said in a telephone interview that he had worked at the same company for 18 years and drove to work 5 miles a day in stop-and-go traffic.

He has been able to achieve only 21 to 22 m.p.g. with the Elantra, he said, but got 24 m.p.g. with his 2007 Nissan Sentra 2.0 S with an identical driving pattern.

He said he noticed the problem immediately after getting the car. Every time he fills up he notes his mileage and how much gas he buys, calculates the miles per gallon and enters the information into a spreadsheet. He also had the car serviced by Hyundai every 6 months.

When complaining initially, he was told to give it another 6 months. Then they said give it 10,000 miles. When he took it in for the next service he complained that even though it was rated at 29 to 40 m.p.g. he was getting only 22 m.p.g.

The service technician told him there was nothing wrong with the car.

“He admitted it should be 22, not 29 for city traffic,” Mr. Koopersmith said. “He probably won’t be quoted on that, but that’s what he told me.”

When Stacy Bray, 52, a project manager in San Marcos, Tex., complained about the mileage on her 2013 Elantra, she said she was told she “probably had a heavy foot” or was “probably not driving that many freeway miles.”

“They just come up with excuses,” Mrs. Bray said.

The E.P.A. did not levy fines or sanctions against either Hyundai or Kia. Instead, Hyundai announced that it would restate the fuel economy of the Elantra as 28 m.p.g. city and 38 highway, with a combined average of 32 m.p.g., which is only 1 or 2 miles per gallon less than before. That, along with the rest of the settlement, doesn’t sit too well with some owners.

“I tried to figure out the difference between what the m.p.g. should be and what I’m actually getting,” said Mrs. Bray, who estimates her driving pattern to be 90 percent highway and 10 percent city. “I average around 30 m.p.g. I was expecting to get more like 36. But they are using a figure of 2 miles to the gallon difference and that’s not true. No, it is not 2. It’s a lot more than 2.”

She figures she’s losing $45 a month because of the difference between what the fuel economy actually is and what was advertised. Meanwhile, Hyundai is saying she might get $45 a year from the settlement.

Mr. Gordon estimates he is likely to get $55 a year under this settlement. “What gets me mad is the E.P.A. found out they fudged on the test and nobody got fined, nobody at Hyundai lost their jobs,” Mr. Gordon said. “But they sold 900,000 cars fudging the m.p.g.”

Jim Trainor, product public relations senior group manager for Hyundai Motor America, said the company was aware that some owners were unhappy with the compensation being offered but that others were more positive. “I’ve also seen a lot of people saying, ‘Hey good for them for owning up to this and I’m proud to be a Hyundai owner.’”

He cited a J.D. Power & Associates study in which customers were asked to rate how happy they were with their fuel economy. “We were by far No. 1 in pleasing our customers in fuel economy,” Mr. Trainor said.

Mr. Gordon says he thinks that Hyundai should be made to buy back the cars and that fines and sanctions should be levied against the automaker.

Mr. Koopersmith estimated he would get $30 a year in the settlement, which he said was not satisfactory.

He would rather have the company admit that the Elantra would get only 22 miles per gallon.

“It’s just the principle of the thing,”
Mr. Koopersmith said. “How can they get away with advertising that and enticing you to get a car and it’s not true and then getting away with admitting, ‘O.K. I was only off by 1.’ I don’t believe it.”
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Old 11-10-12, 12:39 PM
  #47  
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Originally Posted by Blueprint

What we also need done are profound apologies from the hyunDai/Kia fluffers who argued to death people were wrong and the 40mpg etc was accurate and it was people's fault. They inundated forums with crap.
That would include some prominent members and even a moderator on this very forum?
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Old 11-16-12, 07:30 PM
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lol.. this is hilarious...
 
Old 11-16-12, 08:22 PM
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Originally Posted by Blueprint
lol.. this is hilarious...
The truth continues to come out.

Many of us here have known about Hyundai's incredibly rude and pushy guerilla-style PR shills and paid forum supporters, who mobbed auto forums all over the place with their pro-Hyundai propaganda.

Now we actually have some real proof of these groups' existence. This story made a few major outlets like Bloomberg, Forbes, Yahoo News, and browsing around, I noticed in the comments section for the Forbes story a "Kia Social Team" spokesperson posting there. I wonder if the "Social Team" is officially endorsed to mob auto forums with pro-Kia posts?

http://www.forbes.com/sites/jimgorze...stimating-mpg/

They are obviously in damage mitigation mode, and their "social teams" must be working overtime right now.
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Old 11-16-12, 08:33 PM
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Default Hyundai Fuel-Economy Flap Seen as Turned Tables for Honda

http://www.bloomberg.com/news/2012-1...for-honda.html

For Honda Motor Co. (7267) it was a rude moment when Hyundai Motor Co. (005380) unfurled a banner at the 2010 Detroit auto show touting the Korean brand as America’s most fuel-efficient. Honda’s U.S. sales chief vowed that Hyundai’s apparent victory would “motivate us even further.”

Now it’s payback time. Just as Honda ramps up sales of a new Accord sedan and prepares a modified Civic small car, Hyundai and its affiliate Kia Motors Corp. (000270) are regrouping after admitting to the most extensive overstatement of fuel-economy ratings ever found by the U.S. Environmental Protection Agency.

“The timing is beautiful for Honda,” said Jake Fisher, director of automotive testing for Consumer Reports, in a phone interview. “They’d been seen as falling behind in fuel efficiency, not keeping up with Hyundai and others.’”

Hyundai’s reversal may help a number of automakers. Toyota Motor Corp. (7203), Nissan Motor Co. (7201) and Ford Motor Co. (F) are promoting fuel-efficient new models. Still, no automaker stands to benefit from Hyundai’s misstep as much as Honda. Hyundai sales may slide as much as 11 percent for the next few months, according to Strategic Vision, a San Diego-based consumer-research company that annually surveys 350,000 carbuyers.

At the same time, Honda’s cars and sport-utility vehicles are those most often considered as alternatives for Hyundai buyers, ahead of other brands, said Alexander Edwards, president of Strategic Vision’s auto division.

Honda’s American depositary receipts gained 3.4 percent to $31.95 at the close in New York.

Accurate Ratings

“For people who think ‘this isn’t for me,’ as a result of the fuel-economy issue, Honda does look like an attractive brand known for fuel economy,” said Jessica Caldwell, an analyst for Edmunds.com, the Santa Monica, California-based auto pricing and data website. “Honda should benefit most.” Ford may also benefit, she said.

As gasoline prices soar, fuel economy has emerged as a draw for car buyers. U.S. gasoline prices reached an average of $4.11 a gallon in July 2008 and approached the $4 level again this year. U.S. regulations requiring automakers to double vehicle efficiency by 2025 ensure that rising, and accurate, mileage ratings will remain an industry priority.

The EPA this month said Hyundai and Kia would put new mileage labels on “the majority of their 2012 and 2013 models,” reducing average mile per gallon ratings by 1 to 2 miles for most of the affected vehicles. Kia’s Soul wagon was the farthest off, revising highway mileage downward by 6 miles (9.7 kilometers) per gallon.

While the companies have apologized to customers and are offering pre-paid fuel cards to reimburse owners for the discrepancy, at least three lawsuits have been filed on behalf of disgruntled customers for the inflated mileage claims.

Main Alternative


Honda executives say they’re not likely to make similar errors.

“We’ve been conservative in our EPA estimates,” said Mike Accavitti, Honda’s head of U.S. marketing, in a phone interview from Boston. “We triple check everything so customers are satisfied with the mileage they get in the real world.”

Prior to Hyundai’s 2010 show banner, Honda led U.S. fuel- economy rankings for 33 years, based on Environmental Protection Agency data, and with the new models it plans to do so again.

“There’re a few jewels in the Honda crown that we protect at all costs, and number one is trust,” said Robert Bienenfeld, Honda’s U.S. senior manager for environment and energy strategy. “Integrity is critical when you give out fuel economy ratings.”

Accavitti and Bienenfeld declined to criticize Hyundai and Kia.

Along with Honda’s new models, the timing of the Hyundai- Kia mileage revisions coincides with the release of Ford’s 2013 Fusion sedan, a midsize competitor to Hyundai’s Sonata, and Toyota’s addition of an Avalon hybrid sedan boasting a combined 40 mpg in city and highway driving.

Sales Gains

While Toyota’s hybrid lineup, including the top-selling Prius, make it a fuel economy leader for customers, “Honda is a younger brand, compared with Toyota, and Kia and Hyundai have been more attractive to younger people than Toyota,” Caldwell said.

Hyundai’s U.S. sales accelerated from late 2009 with the arrival of a restyled Sonata sedan, a competitor to Accord and Toyota’s Camry. A series of follow-on releases included Hyundai’s Elantra, Accent subcompact and Veloster hatchback, and Kia’s midsize Optima sedan and Soul wagon, all with edgier styling and claiming segment-leading fuel economy.

That helped the Seoul-based affiliates boost their combined U.S. sales from 675,139 vehicles in 2008 to 1.13 million in 2011. Through October, the companies that share engines, platforms and a chairman boosted sales 12 percent to 1.07 million vehicles.

‘Cool-Looking Cars’

“People bought into the whole program: cool-looking cars that also offered great value, including high fuel economy,” Caldwell said. “Now it turns out that one part of that formula wasn’t true.”

Hyundai and Kia’s growth came as Honda struggled with poor reviews for models including its 2012 Civic and worked to restore assembly operations in 2011 following natural disasters in Asia that cut parts supplies.

Toyota, like Honda, also had to overcome production disruptions related to Japan’s earthquake and tsunami last year, and work to restore its reputation for quality after record recalls in 2010 to fix gasoline pedal-related flaws.

“Hyundai definitely got a benefit from its new products that came out when Toyota and Honda were having some problems,” Caldwell said. “The timing makes this an interesting reversal of fortune story.”

‘Coastdown’ Test

Hyundai and Kia said Nov. 2 the flawed mpg ratings were the result of how engineers in South Korea conducted the EPA’s “coastdown” test. The test, in which a vehicle accelerates to about 80 miles an hour on a flat, straight road, is put into neutral and then allowed to coast down to about 9 mph, wasn’t done correctly, the companies said.

“These were just honest procedure errors in a very complex testing process,” Sung Hwan Cho, president of Hyundai’s U.S. technical center, said on a conference call with reporters on Nov. 2.

The EPA’s fuel-economy tests “are clear and well understood by Honda engineers,” Bienenfeld said.

The company’s engineers do initial fuel-efficiency evaluation at Honda’s research units in Japan and the U.S., followed by official certification tests before vehicles go on sale, and basic evaluations of vehicles coming off the production lines at each factory, he said.

“While there’s going to be some variation between how individual customers drive, the tests should be repeatable in every lab,” Bienenfeld said.

“We need to make sure people aren’t gaming the system,” he said, declining to comment on Hyundai and Kia.

Rating Revisions

Already, Hyundai’s revisions this month put the Civic back ahead of the Elantra compact in fuel efficiency.

The Hyundai Elantra’s initial label rating of 29 mpg in city driving, 40 mpg on the highway when it was released in late 2010, was lowered to 28 city and 38 highway mpg.

By comparison, Honda’s 2012 Civic has a 28 city and 39 highway mpg rating.

In its reviews of the cars, Consumer Reports found that the Elantra averaged 29 mpg in combined city and highway driving, compared with 30 mpg for Civic.

Honda this month will release a modified Civic as a 2013 model, with a new interior and exterior-styling changes aimed at addressing shortcomings that drew a withering Consumer Reports review last year. The company’s 2013 Accord that came out late this year has received mostly favorable reviews for improved ride and handling, interior materials and fuel economy.

“The Accord was off to a great start without any of this news about Hyundai and Kia. The car speaks for itself,” said Bienenfeld. “The Civic will also stand on its own. Elantra was the fuel economy leader. Now we have a new Civic coming out, so it doesn’t hurt.”

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

To contact the editor responsible for this story: Jamie Butters at jbutters@bloomberg.net
Ouch! A Honda spokesperson absolutely burned Hyundai with those comments. Honda, a brand itself that is struggling and is putting its future hopes in dreams and unicorns, absolutely made a huge example of the lack of integrity and trust that Hyundai offers to buyers and owners.

Well Hyundai, this is what they call karma.

Many of us here on CL foresaw this, and called it that karma would come, and it has, and this isn't going to be the end of Hyundai's problems as a consequence of their arrogance.
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Old 11-25-12, 12:29 AM
  #51  
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Default New car shoppers less willing to consider Hyundai, Kia after mileage overstatement

New car shoppers less willing to consider Hyundai, Kia after mileage overstatement



Summarizing the results of research carried out by Edmunds, Reuters reports that consumers' are less inclined to purchase cars from Hyundai and Kia due to the company's recent snafu over inflated mileage claims. The Edmunds metric of "purchase intent" declined by 1.9 percent for the Kia Soul (pictured), meaning that the largest drop in consideration coincided with the model that suffered the biggest drop in mileage ratings. Consideration dropped .4 percent for the Hyundai Elantra, and purchasing intent also fell for the Hyundai Accent and Veloster, as well as the Kia Rio.

An Edmunds analyst thinks the brouhaha could affect "future business as this development may have a direct impact on Hyundai's credibility with some U.S. buyers," and Moody's Investment Service figures compensating buyers might cost "$100 million a year until the cars are scrapped" – and that cost doesn't include potential damages from lawsuits. But in the "we all have opinions" column, other analysts don't believe there won't be any serious long-term fallout from the mileage mistatements. Remember, it was only two years ago that Toyota was being frogmarched across the nation to be pilloried in Washington, D.C. for what is arguably a much more grievous offense, and woe was all the rage when describing Toyota's plight. And now? It's ranked among the best global brands in 2012 and appears poised to retake the title of world's largest automaker.

http://www.autoblog.com/2012/11/24/n...kia-after-mil/
___

I claimed they were fluff about a year ago and what do ya know . They grew to big to fast and now their paying for it
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Old 12-05-12, 08:26 AM
  #52  
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Updates..

http://www.prnewswire.com/news-relea...181876871.html

http://www.thedetroitbureau.com/2012...-senate-probe/

http://www.consumerwatchdog.org/news...cker-scandal-0


Senator Rockefeller Asks Hyundai America CEO For Answers About MPG Sticker Scandal





WASHINGTON, Dec. 3, 2012 /PRNewswire-USNewswire/ -- United States Senator and Commerce Committee Chairman John D. Rockefeller has written the president and chief executive of Hyundai Motors America to answer questions about the company's false "Mile Per Gallon" window sticker claims that were exposed by an Environmental Protection Agency audit, noted Consumer Watchdog today.
Senator Rockefeller wrote Hyundai: "I will monitor the results of the EPA's ongoing investigation to better understand how this error occurred, how Hyundai and Kia may have used inflated fuel economy numbers to attract consumers, and how federal enforcement agencies can better deter similar violations in the future."
Senator Rockefeller also questioned whether the company's rebate program would adequately compensate consumers, and called upon Hyundai to answer questions by December 14th.
Two weeks ago, Consumer Watchdog called upon the chairs of the US Senate and House commerce committees to investigate the MPG sticker scandal, which was the first time a carmaker has ever been forced to change the MPG sticker claims on a large number of vehicles. The consumer group first called on the EPA to investigate the Hyundai Elantra fuel economy claims one year ago.
Carmakers, unbeknownst to most Americans, self-test their vehicles to arrive at the EPA "MPG" claims on the window stickers of cars.
"Hyundai drivers and American taxpayers are now closer to getting answers about the largest MPG sticker scandal in American history," said Consumer Watchdog president Jamie Court. "This is good news for the public and for truth in advertising. The eyes of the Senate join the courts and the EPA in making certain that Hyundai will be fully transparent about what led to the falsification of these window stickers and give the American public the answers it deserves."
Read Senator Rockefeller's letter at http://www.consumerwatchdog.org/reso...ockefeller.pdf

PR Newswire (http://s.tt/1vHA5)
 
Old 12-05-12, 08:43 AM
  #53  
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He has been able to achieve only 21 to 22 m.p.g. with the Elantra, he said, but got 24 m.p.g. with his 2007 Nissan Sentra 2.0 S with an identical driving pattern.
this is the main problem here... and it is not just Hyundai, look at how many advertise "40 MPG" cars. We have people who had Prius buy Ford hybrids, get 12 mpg less than before, while they expected 3 mpg less.... Do you think they will be happy if Ford sends them $50 per year? They just spent $30k buying new car, a lot of it is about ownership experience... if you are unhappy, ti is a lot worse than just diff in fuel cost.
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Old 12-05-12, 09:22 AM
  #54  
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United States Senator and Commerce Committee Chairman John D. Rockefeller has written the president and chief executive of Hyundai Motors America to answer questions about the company's false "Mile Per Gallon" window sticker claims
A politician questioning a CEO about exaggerated claims?
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Old 12-05-12, 06:11 PM
  #55  
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Old 12-06-12, 12:06 AM
  #56  
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I'm pretty damn sure taxpayers don't give a **** about what Hyundai is doing and are instead watching the nimrods in Washington continue to send this country over the cliff.
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Old 12-06-12, 08:24 AM
  #57  
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Originally Posted by 84Cressida
I'm pretty damn sure taxpayers don't give a **** about what Hyundai is doing and are instead watching the nimrods in Washington continue to send this country over the cliff.
How dramatic. I won't discuss politics.

However, car purchases are typically the second biggest purchase of a person's life (just second to home ownership). It's a big deal.

When people strategically choose economic daily drivers for gas efficiency and lower total cost of ownership, consumers want gas efficiency and lower cost of ownership. Just like horsepower ratings and warranty coverage, people only want what was promised.
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Old 12-06-12, 08:29 AM
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Let's compare apples and oranges:

Toyota was accused of lying regarding unintended acceleration. They proved that the accusations were invalid. People got what they were promised. Toyota maintains their integrity.

Hyundai is accused of lying about gas mileage. They have yet to provide what they promised to their customers. Hyundai lost consumer confidence.


I don't know how things will turn out. I do know that Hyundai will leave a sour taste in the mouth, especially when consumers are slapped with a paltry "rebate" for the "inconvenience".

At least Toyota provided free service and maintenance to those who were concerned about unintended acceleration, even when they couldn't prove that they weren't at fault.
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Old 12-06-12, 02:00 PM
  #59  
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Originally Posted by 84Cressida
I'm pretty damn sure taxpayers don't give a **** about what Hyundai is doing and are instead watching the nimrods in Washington continue to send this country over the cliff.
IMO, consumer protection is one of the few truly beneficial forms of government regulation.

Just because government does a lot of big stupid things doesn't mean they shouldn't do small things right.
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Old 12-08-12, 10:05 AM
  #60  
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Originally Posted by PhilipMSPT
Let's compare apples and oranges:

Toyota was accused of lying regarding unintended acceleration. They proved that the accusations were invalid. People got what they were promised. Toyota maintains their integrity.

Hyundai is accused of lying about gas mileage. They have yet to provide what they promised to their customers. Hyundai lost consumer confidence.


I don't know how things will turn out. I do know that Hyundai will leave a sour taste in the mouth, especially when consumers are slapped with a paltry "rebate" for the "inconvenience".

At least Toyota provided free service and maintenance to those who were concerned about unintended acceleration, even when they couldn't prove that they weren't at fault.
Yup. The crickets are hilarious
 


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