Hyundai, Kia Admit Overstating Fuel Economy, To Reimburse Affected Car Owners

South Korean carmakers Hyundai and Kia admitted they've overstated the fuel economy for more than a third of the vehicles they sold in the U.S. in the last two years after the U.S. Environmental Protection Agency (EPA) released an investigative report on the related allegations.

Hyundai and Kia, both owned by the Hyundai Motor Group, assured that they would soon begin a broad effort to reimburse consumers and adjust the fuel economy ratings of the affected models.

As part of Hyundai/Kia's corrective actions, the fuel economy ratings for vehicles currently in showrooms are being voluntarily relabeled. With these changes, the 2012 Hyundai/Kia fleet fuel economy level is reduced by an average of 3 percent - from 27 to 26 MPG.

"I sincerely apologize to all affected Hyundai and Kia customers, and I regret these errors occurred," said Dr. W. C. Yang, Chief Technology Officer of Hyundai/Kia research and development. "Following up on the EPA's audit results, we have taken immediate action to make the necessary rating changes and process corrections," he added.

"The fuel economy rating discrepancies resulted from procedural errors during a process called "coastdown" testing at the companies' joint testing operations in Korea," both companies said. "Coastdown testing simulates aerodynamic drag, tire rolling resistance and drivetrain frictional losses and provides the technical data used to program the test dynamometers that generate EPA fuel economy ratings."

"Given the importance of fuel efficiency to all of us, we're extremely sorry about these errors," said John Krafcik, President and CEO of Hyundai Motor America. "When we say to Hyundai owners, 'We've got your back,' that's an assurance we don't take lightly. We're going to make this right for everyone, and we'll be more driven than ever to ensure our vehicles deliver outstanding fuel economy."

The EPA's investigation was instigated by consumer complaints that their cars were underperforming the official mileage estimates on the window stickers of new Hyundai and Kia vehicles.

The EPA did not impose any sanctions or fines against either carmaker as they have agreed to voluntarily lower fuel estimates for approximately 900,000, or 35 percent of, 2011-13 model year vehicles sold through Oct. 31.

"As a customer-focused organization, we are fully committed to providing consumers with complete and accurate information, and deeply regret the errors were made," said Byung Mo Ahn, group president and CEO, Kia Motors America and Kia Motors Manufacturing Georgia. "Our reimbursement program is intended to ensure that all affected Kia customers quickly receive fair compensation."