HYUNDAI AND KIA INITIATE VOLUNTARY PROGRAM TO ADJUST FUEL ECONOMY RATINGS ON SELECT VEHICLES

Chris Hosford
Chris Hosford
Corporate Communications Executive Director
Scott McKee
Scott McKee
Manager, Vehicle Pricing
All Contacts
ID: 37747

Automakers’ Average Fuel Economy Rating Reduced 3 Percent;

Affected Vehicle Owners to be Compensated

ORANGE COUNTY, Nov. 2 – Hyundai Motor America and Kia Motors America today announced that, following discussions with the U.S. Environmental Protection Agency (EPA), they are voluntarily adjusting the fuel economy ratings for approximately 900,000, or 35 percent of, 2011-13 model year vehicles sold through October 31, 2012.

Procedural errors at the automakers’ joint testing operations in Korea led to incorrect fuel economy ratings for select vehicle lines. 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.”

Both companies are putting in place a comprehensive reimbursement program for affected current and former vehicle owners to cover the additional fuel costs associated with the fuel economy rating change. Customers will receive a personalized debit card that will reimburse them for their difference in the EPA combined fuel economy rating, based on the fuel price in their area and their own actual miles driven. In addition, as an acknowledgement of the inconvenience this may cause, we will add an extra 15 percent to the reimbursement amount. Current owners will be able to refresh their debit card for as long as they own the vehicle. Prior owners of affected vehicles who have already sold their cars will also be reimbursed using the same formula. For more information about reimbursement and a complete list of eligible vehicles, customers can visit www.HyundaiMPGinfo.com and www.KiaMPGinfo.com.

The fuel economy rating discrepancies resulted from procedural errors during a process called “coastdown” testing at the companies’ joint testing operations in Korea. 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. Affected vehicles and their before-and-after EPA estimates are shown in the attachment.

Hyundai and Kia will continue to advance improvements in fuel efficiency through technology and innovation, and continue to fully support the recent rulemaking issued by EPA and the National Highway Traffic Safety Administration.

“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.”

“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.”

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Costa Mesa, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai’s 10-year/100,000-mile powertrain warranty, and five years of complimentary Roadside Assistance. Information about Hyundai Motor America and its full vehicle line-up is available at its website – www.hyundai.com. For media information, including photography, visit www.hyundainews.com.

KIA MOTORS AMERICA

Kia Motors America is the marketing and distribution arm of Kia Motors Corporation based in Seoul, South Korea. KMA offers a complete line of vehicles through more than 755 dealers throughout the United States and serves as the "Official Automotive Partner" of the NBA and LPGA. In 2011, KMA recorded its best-ever annual sales total and became one of the fastest growing car companies1 in the U.S. Kia is poised to continue its momentum and will continue to build the brand through design innovation, quality, value, advanced safety features and new technologies.

Information about Kia Motors America and its full vehicle line-up is available at its website – www.kia.com. For media information, including photography, visit www.kiamedia.com.

1 Based on 5-year cumulative growth between 12-month retail sales for periods ending September 2007 and September 2012 of all U.S. automotive brands.
2 MSRP includes $775 destination and handling fee, but not title, taxes, license, options and dealer charges. Actual prices set by dealer and may vary.
3 EPA fuel economy estimates 22 mpg/city and 34 mpg/hwy for 2013 Optima SX. Actual mileage will vary.

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HYUNDAI FUEL ECONOMY ESTIMATES

Current Fuel Economy Label

Modified Fuel Economy Label

(MPG)

(MPG)

City

Hwy

Combined

City

Hwy

Combined

2011 Models

Elantra

A-6, 1.8L, 4cyl

29

40

33

28

38

32

M-6, 1.8L, 4cyl

29

40

33

28

38

32

Sonata HEV

35

40

37

34

39

36

2012 Models

Accent

A-6, 1.6L, 4cyl

30

40

33

28

37

31

M-6, 1.6L, 4cyl

30

40

34

28

37

32

Azera

A-6, 3.3L, 6cyl

20

29

23

20

28

23

Elantra

A-6, 1.8L, 4cyl

29

40

33

28

38

32

M-6, 1.8L, 4cyl

29

40

33

28

38

32

Genesis

A-8, 3.8L, 6cyl

19

29

22

18

28

22

A-8, 4.6L, 8cyl

17

26

20

16

25

19

A-8, 5.0L, 8cyl

17

26

20

17

25

20

(R-Spec) A-8, 5.0L, 8cyl

16

25

19

16

25

18

Sonata HEV

35

40

37

34

39

36

Tucson 2WD

A-6, 2.0L, 4cyl

23

31

26

22

29

25

M-5, 2.0L, 4cyl

20

27

23

20

26

22

A-6, 2.4L, 4cyl

22

32

25

21

30

25

Tucson 4WD

A-6, 2.4L, 4cyl

21

28

23

20

27

23

Veloster

AM-6, 1.6L, 4cyl

29

38

32

27

35

30

M-6, 1.6L, 4cyl

28

40

32

27

37

31

2013 Models

Accent

A-6, 1.6L, 4cyl

30

40

33

28

37

31

M-6, 1.6L, 4cyl

30

40

34

28

37

32

Azera

A-6, 3.3L, 6cyl

20

30

24

20

29

23

Elantra

A-6, 1.8L, 4cyl

29

40

33

28

38

32

M-6, 1.8L, 4cyl

29

40

33

28

38

32

A-6, 1.8L, 4cyl

30

40

34

28

38

32

Elantra Coupe

A-6, 1.8L, 4cyl

28

39

32

27

37

31

M-6, 1.8L, 4cyl

29

40

33

28

38

32

Elantra GT

A-6, 1.8L, 4cyl

28

39

32

27

37

30

M-6, 1.8L, 4cyl

27

39

31

26

37

30

Genesis

A-8, 3.8L, 6cyl

19

29

22

18

28

22

(R-Spec) A-8, 5.0L, 8cyl

16

25

19

16

25

18

Santa Fe Sport 2WD

A-6, 2.0L, 4cyl (*T)

21

31

25

20

27

23

A-6, 2.4L, 4cyl

22

33

26

21

29

24

Santa Fe Sport 4WD

A-6, 2.0L, 4cyl (*T)

20

27

22

19

24

21

A-6, 2.4L, 4cyl

21

28

23

20

26

22

Tucson 2WD

A-6, 2.0L, 4cyl

23

31

26

22

29

25

M-5, 2.0L, 4cyl

20

27

23

20

26

22

A-6, 2.4L, 4cyl

22

32

25

21

30

25

Tucson 4WD

A-6, 2.4L, 4cyl

21

28

23

20

27

23

Veloster

AM-6, 1.6L, 4cyl

29

40

33

28

37

31

A-6, 1.6L, 4cyl (*T)

25

34

29

24

31

28

M-6, 1.6L, 4cyl

28

40

32

27

37

31

M-6, 1.6L, 4cyl (*T)

26

38

30

24

35

28

KIA FUEL ECONOMY ESTIMATES

Current Fuel Economy Label

Modified Fuel Economy Label

(MPG)

(MPG)

City

Hwy

Combined

City

Hwy

Combined

2011 Models

Optima HEV

35

40

37

34

39

36

2012 Models

Rio

A-6, 1.6L, 4cyl

30

40

33

28

36

31

M-6, 1.6L, 4cyl

30

40

34

29

37

32

Sorento 2WD

A-6, 2.4L, 4cyl (*GDI)

22

32

25

21

30

24

Sorento 4WD

A-6, 2.4L, 4cyl (*GDI)

21

28

23

20

26

22

Soul

A-6, 1.6L, 4cyl

27

35

30

25

30

27

M-6, 1.6L, 4cyl

27

35

30

25

30

27

A-6, 2.0L, 4cyl

26

34

29

23

28

25

M-6, 2.0L, 4cyl

26

34

29

24

29

26

Soul ECO

A-6, 1.6L, 4cyl

29

36

32

26

31

28

A-6, 2.0L, 4cyl

27

35

30

24

29

26

Sportage 2WD

A-6, 2.0L, 4cyl (*T)

22

29

24

21

28

24

A-6, 2.4L, 4cyl

22

32

25

21

30

25

M-6, 2.4L, 4cyl

21

29

24

20

27

23

Sportage 4WD

A-6, 2.0L, 4cyl (*T)

21

26

23

20

25

22

A-6, 2.4L, 4cyl

21

28

24

20

27

23

2013 Models

Rio

A-6, 1.6L, 4cyl

30

40

33

28

36

31

M-6, 1.6L, 4cyl

30

40

34

29

37

32

(Eco) A-6, 1.6L, 4cyl

31

40

34

30

36

32

Sorento 2WD

A-6, 2.4L, 4cyl (*SIDI)

22

32

25

21

30

24

Sorento 4WD

A-6, 2.4L, 4cyl (*GDI)

21

28

23

20

26

22

Soul

A-6, 1.6L, 4cyl

27

35

30

25

30

27

M-6, 1.6L, 4cyl

27

35

30

25

30

27

A-6, 2.0L, 4cyl

26

34

29

23

28

25

M-6, 2.0L, 4cyl

26

34

29

24

29

26

Soul ECO

A-6, 1.6L, 4cyl

29

36

32

26

31

28

A-6, 2.0L, 4cyl

27

35

30

24

29

26

Sportage 2WD

A-6, 2.0L, 4cyl

22

29

24

21

28

24

A-6, 2.4L, 4cyl

22

32

25

21

30

25

M-6, 2.4L, 4cyl

21

29

24

20

27

23

Sportage 4WD

A-6, 2.0L, 4cyl

21

26

23

20

25

22

A-6, 2.4L, 4cyl

21

28

24

20

27

23

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