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Hyundai and Kia fined for fuel economy fraud


by Joseph Earnest November 3, 2014   


Newscast Media WASHINGTONSouth Korean carmaker Hyundai and its affiliate Kia have agreed to pay a huge fine to settle a US government probe into exaggerated fuel efficiency. The data the firms provided were found to be extremely misleading.

Hyundai and Kia will have to pay $100 million (80 million euros) as the largest civil penalty ever imposed under the four-decade-old Clean Air Act, the US Department of Justice announced Monday.

Investigations into exaggerated fuel efficiency data for 2012 and 2013 car models sold in the US had shown that the South Korean auto makers used inaccurately low numbers to demonstrate compliance with emissions standards.

The report said the companies cherry-picked data and conducted tests in ways that did not reflect good engineering judgment.

"Hyundai and Kia calculated higher fuel economy and lower greenhouse gas emissions than these vehicles actually have," Attorney General Eric Holder said in a statement.

As part of the settlement, the carmakers will forfeit the greenhouse gas credits that the firms wrongly claimed based on their inaccurate reporting.

"Businesses that play by the rules shouldn't have to compete with those breaking the law," said Gina McCarthy, administrator with the Environmental Protection Agency (EPA).

The South Koreans agreed to have an independent certification group oversee their fuel economy testing, data management and reporting in the future. Add Comments>>

 Source: Deutsche Welle









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