Kia, Hyundai ‘Overstated’ Fuel Efficiency Of Their Cars: Must Pay N.J. $1.6M

If you bought a Hyundai or Kia between 2011 and 2013 because of its reported fuel economy, you might not have saved as much on your gasoline bill as you thought, according to a recent multi-state settlement with Hyundai and Kia.

The Garden State will receive $1.66 million as part of a multi-state settlement with auto makers Hyundai and Kia that resolves allegations the two companies misrepresented the fuel economy ratings for some of their vehicles, the New Jersey Office of the Attorney General announced Thursday.

The overall $41.2 million settlement - involving 33 states and the District of Columbia - concludes a multi-state investigation into the business practices of Hyundai and Kia relative to fuel economy estimate adjustments for certain of their model year 2011, 2012 and 2013 vehicles, prosecutors stated.

New Jersey was part of a multi-state executive committee that negotiated the settlement with Hyundai and Kia.

“Hyundai and Kia overstated the fuel economy of their cars at a time when that information – how far a particular vehicle could travel on a tank of gas – was foremost in the minds of many auto buyers,” NJ Attorney General Christopher Porrino said.

According to prosecutors, state and federal law sets limits on emissions from vehicles sold in the U.S. Before vehicles may be offered for sale, auto manufacturers must conduct testing under mandatory protocols set by government regulators and use the resulting data to support applications demonstrating their vehicles' conformity to those standards.

In November 2012, Hyundai and Kia announced they were adjusting and restating the fuel economy ratings for certain model year 2011, 2012 and 2013 vehicles after it was revealed the companies had overstated the fuel efficiency of certain models, prosecutors stated.

“States participating in the investigation alleged that Hyundai and Kia incorporated inaccurate and inflated data into the estimated mileage ratings displayed on the window stickers of hundreds of thousands of cars sold in New Jersey and across the country,” prosecutors stated in a news release. “The states also alleged that Hyundai and Kia sought to capitalize on the erroneous mileage estimates by placing them prominently in a variety of advertisements and other promotional campaigns.”

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