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Hyundai and Kia to pay 395 million USD penalty

Snapshot: The US subsidiaries of Hyundai and Kia will be paying a penalty of 395 million USD to settle lawsuits related to inflated mpg figures

The US subsidiaries of the South Korean auto major Hyundai and Kia has agreed to pay an approximate amount of 350 USD to every car owner who bought their products with exaggerated mpg (miles per gallon) figures. 

During an official EPA inquiry, manufacturer's 13 offerings comprising of eight models from Hyundai and five from Kia were found with false mpg claimings, therefore about 53 lawsuits were charged on the manufacturer for doing so. Then in the month of November last year, Hyundai and Kia agreed on the fact that they overstated fuel economy of some of their products, atleast by 1 mpg. 

Now after the verdict from Los Angeles federal court, the manufacturers will be paying a total penalty of hefty 395 million USD  to some 600,000 Hyundai and 300,000 Kia vehicle owners, who purchased their cars between the year 2011 - 2013.

Eligible owners can choose the one-time payment option or continue to participate in a reimbursement program. Under this program, Hyundai and Kia will provide debit cards to compensate for the extra fuel clients had to acquire.

John Yoon, attorney for Kia Motors America, said, "Kia Motors is a responsible company, and the proposed settlement enhances our goal of making things right for our customers by providing new reimbursement options and we are fully committed to taking care of its customers, and today's settlement adds flexibility by adding lump-sum payment options to the transparent reimbursement program introduced last year."

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