Hyundai & Kia To Refund Total Of $395 Million To Customers Over Misstated Mileage Claims

Last year, the Environmental Protection Agency found that Hyundai and Kia had misrepresented the gas mileage on around 900,000 vehicles sold between 2010 and 2012, leading to several current and former owners of these vehicles to sue the South Korean car makers. Today, the companies announced they had reached a settlement deal that would refund up to $395 million to customers.

The misstated mileage impacts owners of 600,000 Hyundai vehicles, or about 27% of that brand’s model year 2011-2013 sales in the U.S. The average payment to Hyundai owners will be about $353, but will vary depending on model and whether or not the owner has previously received reimbursements through the program the car maker set up in the wake of the Nov. 2012 EPA report. That program is supposed to cover the additional fuel costs between the advertised and actual MPGs (which were about 1 to 2 MPG apart) plus a 15% premium.

Owners can either choose to accept the proposed lump sum payment (For example: The 2012 Elantra earns a $320 payment, minus reimbursements) or they can choose to remain in the Hyundai reimbursement program.

There are other options, like a dealership credit of 150% of the lump sum cash payment amount, or a credit of 200% of the cash amount toward the purchase of a new Hyundai vehicle.

Kia, which is owned by Hyundai, is offering the same options to the owners of the 300,000 affected vehicles, though those owners are likely to receive more money, with the average lump sum payment estimated at $667.

These settlements are still pending court approval, but more information for affected consumers can be found at and

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