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11-02-2012, 09:50 AM | #1 |
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Hyundai, Kia admit exaggerated mileage claims, will compensate owners
http://www.autoblog.com/2012/11/02/h...-compensate-o/
Hyundai and Kia are lowering the fuel economy estimates on a majority of 2012 and 2013 models. The Detroit News reports a probe by the Environmental Protection Agency has found both manufacturers guilty of posting false fuel economy estimates on vehicle window stickers since late 2010. The companies will spend millions of dollars compensating the owners of some 900,000 vehicles sold under the claims. This marks the largest spate of fuel economy reductions in the history of the automotive industry. Prior to this probe, only two vehicles have seen their window sticker fuel economy values reduced since 2000. Hyundai aggressively advertised the fact that the brand offers four models that boast 40 mpg, but that claim is no longer true. The 2013 Hyundai Accent, Veloster and Elantra will now see their EPA estimates fall to either 37 or 38 miles per gallon on the highway. The report quotes Hyundai CEO John Krafcik as saying, "We're extremely sorry about these errors" and blamed "procedural errors" in the company's fuel economy testing as the reason behind the discrepancy. All told, 35 percent of 2011-2013 models sold through October will see a reduction. Of those, 580,000 will see a drop of around 1 mpg, while 240,000 units will have their EPA figures cut by 2 mpg. The remaining 80,000 will drop by 3 to 4 mpg. Owners will be compensated based on their vehicles' odometer readings, and both automakers will contribute an additional 15 percent over the dollar value. The funds will be awarded via prepaid debit cards. For an owner who drove 15,000 miles, an adjustment of 1 mpg would result in a refund of around $88. For some time there has been suspicion that the Korean automakers' fuel economy claims were too optimistic, which most recently led to a class-action lawsuit filed in July of this year by an organization called Consumer Watchdog on behalf of Elantra owner Louis Bird of California. I expect the flood gates are about to open for a lot of manufacturers because there are a lot of cars out there with inflated numbers, IMO.
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11-02-2012, 10:00 AM | #2 |
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I want to see substantial corporate fines! It's not just about the $ to owners for the mileage. It's about sales cannibalized from other manufacturers due to these false MPG claims.
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11-02-2012, 10:35 AM | #3 |
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11-02-2012, 10:46 AM | #4 |
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11-02-2012, 10:50 AM | #5 | |
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Hyundai advertised the heck out of the 40MPG number because it brought people onto the lots. |
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11-02-2012, 10:52 AM | #6 |
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Yep. People on the Veloster forums have been rightly pissed about this for a while. Glad we're gonna be compensated.
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11-02-2012, 10:56 AM | #7 |
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I would be pretty pissed that the compensation was only covering the current odometer reading, then you are are basically stuck with the poor MPG and no further compensation for the rest of the time you own the car.
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11-02-2012, 11:06 AM | #8 |
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It's not about stupidity. Even for a completely rational consumer, it's the "marginal" feature which sways their purchase decision. The auto marketplace is extremely competitive, meaning small differences in products equate to large differences in sales.
A consumer can make a reasonable evaluation of their opinion of most of the car in the showroom and on the test drive. How comfortable are the seats? do they like the sight-lines? Does it merge decently into freeway traffic? Is it too noisy? All questions which are relatively easy for a consumer to answer in a short time. It's questions like reliability and fuel economy which the informed consumer must seek outside information from organizations like the EPA and Consumer Reports. One can't objectively measure their own real world fuel economy on a test drive. This is what makes Hyundai's gaming of the fuel economy numbers so egregious, and why shikataganai is right to want corporate fines. A cynical business person can see what Hyundai has done and say "OK, they gambled and got caught, but they only lost what they wagered in the gamble, so it makes sense to gamble because we'll gain every time we don't get caught." Not the kind of behavior we want to incentivise. |
11-02-2012, 11:09 AM | #9 |
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As I understand it, it's a yearly adjustment, not a one-time compensation.
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11-02-2012, 11:13 AM | #10 | |
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11-02-2012, 11:13 AM | #11 | |
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Even enthusiasts can be emotional about MPG. Just check some of the huge MPG threads for the new Impreza |
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11-02-2012, 11:18 AM | #12 | ||
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11-02-2012, 11:19 AM | #13 |
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I didn't buy mine for the MPG exclusively, but it's not like it wasn't a small factor in my decision.
I also hate being lied to. |
11-02-2012, 11:24 AM | #14 |
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This is pathetic and embarrassing. It's the "whatever it takes to win" culture in Korea at work. No one will believe anything H/K says for a very long time, be it fuel economy, power figure, performance numbers, etc. They completely destroyed their credibility.
It's like politics. The worst kind of bad news is the one that enforces the negative stereotype that people already have about you. |
11-02-2012, 11:31 AM | #15 | |
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Poor mileage is by far the number one topic on Juke forums. |
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11-02-2012, 11:34 AM | #16 | |
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For example, many people who don't need AWD, rule out the Impreza because of its 36mpg hwy rating vs other comparable cars that get 3-5mpg better mpg. But if the difference is only 2-3mpg, that could sway many decisions. |
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11-02-2012, 11:45 AM | #17 | |
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11-02-2012, 11:46 AM | #18 | ||
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The rest of your post appears to be trying to convince me that people do in fact decide based on even small fuel mileage differences, etc. I never said they didn't...my point, in fact, inferred that I think they do. I only said that practice was silly. Further, never once did I even hint that Kia et al. shouldn't be punished, IF indeed it was them "gaming" and not a mistake in protocol. For instance, I agree with this post: Quote:
Last edited by REX8; 11-02-2012 at 12:03 PM. |
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11-02-2012, 11:47 AM | #19 | |
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11-02-2012, 11:58 AM | #20 | |
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Sure it's a minor inconvenience to have to fill up a day or two early, but those days add up over the course of 1-5 years, especially if someone is on a budget (which a lot of people looking at $20k cars are). |
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11-02-2012, 12:06 PM | #21 | |
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Only 80k will get a 3 mpg degrease. At 40 MPG vs. 38, that's 15 gallons of gas a year at 12,000 miles/year. At $5/gal. gas: $75/year for an average driver. <$38/year for the majority of their cars. Sorry, but $38 a year? That's a deciding factor? If so, you shouldn't be buying a $20k car, IMHO of course. Last edited by REX8; 11-02-2012 at 12:21 PM. |
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11-02-2012, 12:32 PM | #22 |
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So the manufacturer, not the EPA, does the testing for the numbers on the window sticker?
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11-02-2012, 12:57 PM | #23 | |
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Maybe they just have to have an "approved" testing plan/equipment in place? Send an inspector out to check their dyno and sign on the line? |
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11-02-2012, 12:57 PM | #24 |
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11-02-2012, 01:06 PM | #25 | |
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Those best in class numbers are one of the top reasons Hyundai is doing so well in the US for the last few years. People like to buy the best. Last edited by ocellaris; 11-02-2012 at 01:28 PM. |
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