Hyundai, Kia To Pay Hefty Fines Over Gas-Mileage Claims

(RTTNews) - South Korean automakers Hyundai Motor Co. (HYMLF.OB, HYMTF.OB) and Kia Motors Corp. (KIMTF.PK), will pay a combined penalty of about $350 million to settle claims that it sold vehicles that emit more greenhouse gases than automakers certified to EPA.

The automakers will pay a $100 million civil penalty, the largest settlement amount to be paid under the Clean Air Act history, to resolve violations concerning the testing and certification of vehicles sold in America. The companies will spend about $50 million on measures to prevent any future violations, and will also forfeit $200 million worth green-house gas emission credits. Automakers earn greenhouse gas emissions credits for building vehicles with lower emissions than required by law.

The companies sold close to 1.2 million vehicles with inflated gas mileage estimates, that will emit about 4.75 million metric tons of greenhouse gases in excess of what the automakers certified to EPA, the U.S. Environmental Protection Agency and the Department of Justice said. These allegations concern the Hyundai Accent, Elantra, Veloster and Santa Fe vehicles and the Kia Rio and Soul vehicles.

"Greenhouse gas emission laws protect the public from the dangers of climate change, and today's action reinforces EPA's commitment to see those laws through," said EPA Administrator Gina McCarthy.

"This unprecedented resolution with Hyundai and Kia underscores the Justice Department's firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law," said Attorney General Eric Holder.