Hyundai-Kia to pay up to $350m for overstating fuel efficiency

Hyundai and Kia motor companies will pay as much as $350 million for overstating the fuel efficiency of their cars, as the Obama administration struck the biggest blow yet in its effort to enforce the regulations central to its strategy for combating climate change. The Justice Department and the EPA on Monday announced that the two Korean automakers — both part of the Hyundai Motor Group — had agreed to pay a $100 million fine and forfeit another $200 million in emissions credits in the largest civil penalty ever levied under the Clean Air Act. The total cost to the companies could reach $350 million, EPA Administrator Gina McCarthy told reporters at a press conference.

This will send a strong message that cheating is not profitable and any company that violates the law will be held to account. This announcement illustrates that this type of conduct quite simply will not be tolerated.

Attorney General Eric Holder

Regulators and the Justice Department had alleged that because of a “systemically flawed” testing program, the companies had sold more than 1.2 million cars in 2012 and 2013 that were inaccurately certified as meeting the administration’s rules for minimum fuel efficiency standards. The companies overstated the data by about 1-2 miles per gallon. In statements, the companies indicated they simply wanted the two-year investigation to be over. Hyundai also argued that its misstatements were “an honest mistake”, spokeswoman Sara Jones said Monday, and both companies faulted the EPA for having confusing regulations, which the agency has since said it would clarify.

Kia Motors is a responsible company, and the agreement with the U.S. Environmental Protection Agency is the result of good-faith efforts among the parties to resolve our issues. We are pleased to have this matter behind us.

A Kia Motor America statement

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