Yahoo – AFP,
Kerry Sheridan, 3 Nov 2014
 |
Hyundai and
Kia agreed to pay $100 million on November 3, 2014, to settle a US
government
investigation into exaggerated fuel efficiency on 2012 and 2013 car
models sold
in the United States (AFP Photo)
|
Washington
(AFP) - Hyundai and Kia agreed to pay $100 million Monday to settle a US
government investigation into exaggerated fuel efficiency on 2012 and 2013 car
models sold in the United States by the South Korean automakers.
The US
Department of Justice said it marked the largest civil penalty ever secured
under the four-decade-old Clean Air Act.
"This
will send a strong message that cheating is not profitable, and that any
company that violates the law will be held to account" said Attorney
General Eric Holder.
The
settlement involved the sale of nearly 1.2 million vehicles, many of which now
need to reduce their stated fuel economy by one to two miles per gallon.
"Because
they used inaccurately low numbers to demonstrate compliance with emissions
standards -- cherry-picking data and conducting tests in ways that did not
reflect good engineering judgment -– Hyundai and Kia calculated higher fuel
economy and lower greenhouse gas emissions than these vehicles actually have,"
Holder told reporters.
The result
is that the six vehicle models implicated will emit approximately 4.75 million
metric tons of greenhouse gases, above and beyond what the automakers certified
with the Environmental Protection Agency.
As part of
the settlement, Hyundai and Kia will "forfeit the greenhouse gas credits
that the companies wrongly claimed based on their inaccurate reporting,"
Holder said.
Relinquishing
those 4.75 million metric tons of credits could be valued at hundreds of
millions of dollars, he said.
The
automakers also agreed to have an independent certification test group oversee
its fuel economy testing, training, data management and reporting in the
future.
"Businesses
that play by the rules shouldn't have to compete with those breaking the
law," said EPA Administrator Gina McCarthy, describing the settlement as
"historic."
 |
The six
vehicle models implicated will emit approximately 4.75 million metric tons of
greenhouse gases, above and beyond what the automakers certified with the
Environmental Protection Agency (AFP Photo/Scott Olson)
|
"This
settlement upholds the integrity of the nation's fuel economy and greenhouse
gas programs and supports all Americans who want to save fuel costs and reduce
their environmental impact."
Hyundai
said in a statement that the agreement requires the company to adjust about a
quarter of its 2011-13 model year vehicles, reducing their combined
city/highway fuel economy by one to two miles per gallon.
In addition
to paying a $56.8 million civil penalty, Hyundai agreed to forgo the use of
approximately 2.7 million greenhouse gas (GHG) emission credits, representing
the difference between the original emissions pledge and the newly adjusted
one.
"Hyundai
has acted transparently, reimbursed affected customers and fully cooperated
with the EPA throughout the course of its investigation," said David
Zuchowski, president and CEO of Hyundai Motor America.
Hyundai
said its adjusted fuel ratings are 27.2 miles per gallon for 2011, 28.3 mpg for
2012 and 29.0 mpg for 2013 model year vehicles.
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