Hyundai and Kia Initiate Voluntary Program to Adjust Fuel Economy Ratings on Select Vehicles P15 Campaign and CS009

Automakers’ Average Fleet 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 and

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

“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

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 – For media
information, including photography, visit

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 – For media information, including
photography, visit

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

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