The US government has fined South Korea’s Hyundai-Kia group US$100m for overstating the fuel-efficiency of about 1.2m vehicles sold between 2011 and 2013.
The fine follows a two-year investigation by the US Environmental Protection Agency under the Clean Air Act which found fuel-efficiency was overstated on 13 models.
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The Korean conglomerate has also been required to audit test results on current models and establish an independent entity to certify future test results which could cost a further US$50m.
Hyundai-Kia also agreed to give up 4.75m greenhouse gas emission credits, worth an estimated US$200m, which it could have sold to other automakers.
Soon after the investigation was launched, in late 2012, Hyundai-Kia voluntarily adjusted fuel-economy claims on around 25% of its models sold in the US, reducing its fleet’s combined fuel-economy by up to two miles per gallon.
Earlier this year, Hyundai was sued in its home market for overstating the fuel efficiency of diesel versions of its Santa Fe model.
This week, GM Korea voluntarily reduced the fuel efficiency claims for its Cruze passenger cars after admitting the tests did not meet the South Korean government’s rules.
