Government Fines Add Up To $300 Million For Hyundai Motor Company

Just five months after GM was fined $35 million by the U.S. Government during the fallout of the Ignition recall fiasco, Kia and Hyundai are paying a much steeper price. Both companies are affiliates of the Hyundai Motor Company, which has been ordered to pay $100 million in civil fines and forfeit $200 million in regulatory credits. The $300 million dollar penalty is the largest ever and stems from Hyundai allegedly misleading consumers.

What Hyundai did was to provide fuel economy estimates that were between one and six miles per gallon off of average scores. Reports indicate that during fuel testing, Hyundai chose favorable verses average MPG ratings and attached them to 1.2 million vehicles built between 2012 and 2013. Eric Holder, the Attorney General of the United States, spoke on behalf of the Department of Justice on this issue. “This type of conduct quite simply will not be tolerated,” Holder said in a statement. “And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities – whenever and wherever they are uncovered.”

This fine against Hyundai comes almost a year after they settled a $400 million dollar class action lawsuit due to inflated MPG claims. That lawsuit impacted approximately 600,000 Hyundai vehicles and 300,000 carrying the Kia logo. Despite the lawsuit and recent fine, Hyundai’s brand chief executive, David Zuchowski remained optimistic. “We are pleased to put this behind us,” Zuchowski said in a statement. “And (we’re) gratified that even with our adjusted fuel economy ratings, Hyundai continues to lead the automotive industry in fuel efficiency and environmental performance.”

Governmental fines, levied towards automotive brands seem to be on the rise. Have you had customers ask you about the MPG claims for Hyundai or Kia vehicles? Do you feel that the fines levied at Hyundai and GM was merited or is the government taking too much money away from private business?