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Hyundai to settle class-action lawsuit on overstated fuel economy

Owners can opt for a lump-sum payment or discounts at a Hyundai dealer. Kia's lawsuits are still pending.

By Clifford Atiyeh Feb 27, 2013 1:04PM
Hyundai will settle a class-action lawsuit after advertising incorrect fuel-economy estimates on about 600,000 cars sold in the U.S., according to court documents filed earlier this week.

In November, when the Environmental Protection Agency discovered fraudulent estimates on 75 Hyundai and Kia models from 2011 to 2013, several car owners sued both companies (Kia is a subsidiary of Hyundai). The latest case filed in the Central District court of California has combined all 38 suits into one, according to Automotive News.

The actual amount of the proposed settlement was not disclosed, although one individual suit wanted $775 million in damages to be paid. Kia is not part of the settlement but may join it, the report said.

Before this settlement, Hyundai and Kia quickly responded with a lifetime cash reimbursement program to pay all affected owners the difference in gas money for as long as they own the cars. Owners have already signed up to receive preloaded debit cards each year depending on their annual mileage. Hyundai and Kia plan to pay out about $225 million and $187 million respectively.

In total, about 900,000 owners are affected and stand to benefit from either payout.

Owners who choose to be part of the settlement can no longer receive annual payments from the automaker. Instead, Hyundai owners can take a lump-sum payment, a service credit at a Hyundai dealer worth 150 percent of the lump-sum payment or a cash rebate valid on a new Hyundai equal to 200 percent of the lump-sum payment.

Annual debit-card payments vary by state gas prices and model -- some saw their EPA ratings drop more than others -- but for a Californian owner of a 2012 Elantra driving 20,000 miles per year, the payout would be about $89, according to Automotive News.

Ford is under an EPA investigation for similar claims that it inflated fuel-economy estimates on its C-Max and Fusion Hybrid models. Lawsuits are also pending.

[Source: Automotive News]
41Comments
Feb 28, 2013 12:53AM
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That depends on if Ford actually lied about things or if they followed the EPA test standards. If they followed the standards, they have nothing to fear.
Feb 28, 2013 1:55PM
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Troy S.

 

I`m sure that you saw the recall on the German engineered Porsche as I know you own one, yet you made no mention of Ford there.

 

Have a great day

Yours truly, mac

Feb 27, 2013 3:46PM
Mar 12, 2013 6:13AM
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Open letter to Ford:

 

I thought my 2013 C-MAX would be a Prius Killer? NOT! As a returning Ford buyer I feel deceived. I want to support US companies and US jobs. What was Ford thinking when they published 47/ 47/47 estimates?  Based on the advertised EPA estimates, I would have been ok with low 40's but 28-33 mpg is not even in the ballpark.  This is not an issue about EPA testing standards, but rather an issue about setting false customer expectations in order to promote sales.  Ford's "47MPG" marketing campaign tarnished what should have been the roll out of a truly remarkable vehicle, the CMAX.  Real world MPG estimates should have been promoted in the mid-30's.  No one would have questioned those numbers and the CMAX would have received the accolades it deserves.  How these MPG estimates made it through Ford corporate is beyond me!  Maybe it was the rush to go to market?

 

I have been accused of not knowing how to drive hybrid. For the record, during the last three years I have leased both a 2010 Prius and 2010 Honda Insight Hybrid, and consider myself an experienced hyper-miler.  My mileage in the Prius is 50 plus, the Insight is 40 plus. The C-MAX is a well-built car, with extremely inflated EPA estimates.  

 

I respectfully request that this matter be investigated as soon as possible.  My efforts to deal with this locally and through Ford customer service have frustrated me to no end. The constant response?  "You need to learn to how to drive hybrid type of vehicle ".  Is there a difference how I drive Prius Hybrid vs. the CMAX hybrid?   I think we all know the answer to that.  I need someone at Ford to reach out to me and assist in a proactive manner so we can put this matter to rest.  I have opted not to join the class action lawsuit regarding this matter in order to explore my resolution options with Ford directly feeling this was the most honest approach to the matter.  Can I expect the same from Ford in return?

 

Respectfully submitted, 

 

Ronald Kramer  

Yankee Ford Customer

South Portland, Maine

 

 

PO Box 2517

South Portland, ME 04116

Mar 11, 2013 5:09AM
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Open letter to Ford:


I thought my 2013 C-MAX would be a Prius Killer? NOT! As a returning Ford buyer I feel deceived. I want to support US companies and US jobs. What was Ford thinking when they published 47/ 47/47 estimates? Based on the advertised EPA estimates, I would have been ok with low 40's but 28-33 mpg is not even in the ballpark. This is not an issue about EPA testing standards, but rather an issue about setting false customer expectations in order to promote sales. Ford's "47MPG" marketing campaign tarnished what should have been the roll out of a truly remarkable vehicle, the CMAX. Real world MPG estimates should have been promoted in the mid-30's. No one would have questioned those numbers and the CMAX would have received the accolades it deserves. How these MPG estimates made it through Ford corporate is beyond me! Maybe it was the rush to go to market? I have been accused of not knowing how to drive hybrid. For the record, during the last three years I have leased both a 2010 Prius and 2010 Honda Insight Hybrid, and consider myself an experienced hyper-miler. My mileage in the Prius is 50 plus, the Insight is 40 plus. The C-MAX is a well-built car, with extremely inflated EPA estimates. I respectfully request that this matter be investigated as soon as possible. My efforts to deal with this locally and through Ford customer service have frustrated me to no end. The constant response? "You need to learn to how to drive hybrid type of vehicle ". Is there a difference how I drive Prius Hybrid vs. the CMAX hybrid? I think we all know the answer to that. I need someone at Ford to reach out to me and assist in a proactive manner so we can put this matter to rest. 



Ronald Kramer Yankee Ford Customer

South Portland, Maine

Jun 25, 2014 7:08PM
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Los Angeles: Hyundai Kia Update: Hyundai and Kia want the class action settlement to provide affected car owners with about $400 per car owner (an Inglewood Small claims court awarded similar damages to one plaintiff of $700 and Hyundai had agreed to pay it which is $300 more than they now propose), while Virginia owners of the Elantra want the full purchase price refunded (around $14,000 per vehicle depending on down payment) plus treble damages. Hyundai and some of its dealers have admitted in court documents (1) that they cannot tell dealers to provide warranty service to your vehicle and (2) that their dealers can refuse you warranty service. This contradicts the warranty where Hyundai promises the dealer will service your vehicle. No wonder Virginia Hyundai owners want the full purchase price refunded plus treble damages. It is sad that some of the California class action plaintiffs fight against the full refund. Let's hope the Judge either requires the settlement to include full purchase refund or allow the Virginia plaintiffs to separate from the class action and pursue their case to trial. The court hearing is tomorrow at 9am Los Angeles in the central district courtroom of Judge George H. Wu on Spring Street on the 10th floor.Case 2:13-ml-02424-GW-FFM

Jan 28, 2014 9:28PM
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Any updates? Apparently Canadians have their deal set but USA customers still don't know how much of a lump sum they could get from Hyundai?
Dec 7, 2013 12:35AM
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I traded my 1998 Subaru Legacy GT AWD that we loved because of the AWD in the snow for a 2013 Elantra to save on gas over a year ago because of the 40mpg and I am lucky to get 29 on the highway driving normal. If we would have know the 40mpg was a lie we would have purchased another Legacy and have a car that dives safer in the snow getting the same MPG the Elantra gets. If I use cruise control and only press on the pedal when it is needed I can get about 32mpg. That is not even close to the 40mpg this car is supposed to get. City driving is a joke I am lucky if I get 17mpg. I signed up for the MPG REWARDS CARD as soon as I heard about it and that is a joke in itself as well.  I have put 17,000 miles on the car so far and I have received only $78. The amount I spend on gas doesn’t even come close to what they are giving for the difference in the 40mpg that the car was supposed to get. I have tried to reach out to everyone for over a year to get on this class action lawsuit and I have had no luck at all. If anyone can lead us in the right direction to get the money back we deserve to get on this class action lawsuit list so we can buy a Subaru again it would mean a real lot to us.

Thank You

John

Oct 17, 2013 9:11AM
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What law firm handled this case. I have a complaint with GM over the Equinox.
Jun 16, 2013 8:09PM
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How do Hyundai owners join the lawsuit and are there now clear answers as to how much money we will get?? Way more than just the debit card refills?
email me at danwat1234@aol.com
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