Hyundai, Kia owners seek $775 million over fuel economy fibs
Loading...
Less than a week after the Environmental Protection Agency announced that not one, not two, but 13 Hyundai and Kia 尘辞诲别濒蝉听, a class-action lawsuit has been filed against the two Korean automakers.
According to聽, the suit -- which hasn't officially been granted class-action status yet -- was filed in the U.S. District Court 聽for Central California. The plaintiffs are 23 Hyundai and Kia owners who seek $775 million in damages.
There's more where that came from
Technically, this is the third lawsuit targeting Hyundai and Kia for inaccurate聽肠濒补颈尘蝉.听
Another was聽聽earlier this week on behalf of three plaintiffs: one Ohio resident who purchased a 2012 Kia Rio, and a Canadian couple who now own聽a 2013 Hyundai Elantra. That lawsuit doesn't appear to seek class-action status, but it聽does聽ask for $5 million in damages.
And back in July, the consumer watchdog group aptly named聽聽asking for unspecified damages on behalf of one Hyundai Elantra owner in Sacramento, California. That suit聽did聽seek class-action status, though there's no indication that's been granted.
Hyundai and Kia spokespersons have declined to comment on the new lawsuit. However, in response to the Ohio case, Hyundai's聽Chris Hosford said earlier this week that the automaker's proposed reimbursement program () is the fastest and most customer-friendly way to resolve the issue.
If successful, this latest lawsuit could dramatically increase Hyundai and Kia's cost of resolving these fuel-efficiency misstatements. As聽, annual compensation for the 900,000 U.S.聽聽affected is conservatively estimated at $80 million -- an expenditure that will continue for as long as owners retain those vehicles.
However, Moody's Investor's Service suggests that the reimbursement plan should run closer to $100 million per year (though that figure may include an additional 172,000 Hyundai and Kia vehicles sold in Canada).
If class-action status is granted in this latest case, that would reduce Hyundai and Kia's annual burden, but the upfront cost of payouts would be enormous. And of course, not every Hyundai and Kia owner is likely to sign onto the lawsuit, meaning that if the suits prevail in court, the automakers will be making payouts on both fronts.
What's next?
- If you own one of the 13 affected models --聽the聽Hyundai Accent, Azera, Elantra, Genesis, Santa Fe, Sonata Hybrid, Tucson, or Veloster, or the聽Kia Optima聽Hybrid, Rio, Sorento, Soul, or Sportage -- and you want to take part in one of the two class-action lawsuits, sit tight. Should either reach that stage, you'll likely receive something in the mail from the plaintiffs' law firm.
- If you own one of those models and聽aren't聽interested in the lawsuits, you can visit聽听辞谤听聽to start the ball rolling on your compensation claim.
- If you own a different Hyundai or Kia vehicle, be patient. The EPA will likely conduct audits on other models soon, and who knows what they'll turn up?
- Last but not least, if you're shopping for a聽new car聽and have your eye on a Hyundai or Kia, Hyundai's John Krafcik says that聽window stickers on showroom vehicles have been amended to reflect accurate聽聽stats. Well, at least for the 13 models included in the EPA's first audit.