Korea levies fines against five automakers for exaggerating mpg

June 27, 2014
The South Korean government is reportedly preparing to levy fines against five major automakers, penalizing the companies for exaggerating fuel mileage ratings.

Korea’s own Hyundai is on the list, along with Chrysler and German rivals Audi, BMW and Volkswagen. Hyundai’s fine is expected to be around a billion won (~$1 million USD), according to Reuters, though the industry ministry has not yet detailed penalties for the others.

Hyundai is reportedly being targeted because of its fuel efficiency ratings for the Santa Fe SUV. Other examples of violations include the Audi A4 2.0 TDI, BMW Mini Cooper Countryman, Jeep Grand Cherokee and VW Tiguan 2.0 TDI.

Interestingly, Korea’s industry ministry upholds Hyundai’s Santa Fe ratings while the transportation ministry claims the figures have been overstated. The government has suggested the transportation ministry’s numbers will be considered the official figures.

The fine is relatively paltry for the large automakers, though they may be forced to pay significantly more to settle compensation claims from vehicle owners. Hyundai and Kia agreed to pay up to $395 million in lump-sum payments to US owners for overestimating mpg ratings for a dozen models.

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