Hyundai and Kia have agreed to a settlement worth more than $350 million to end the government’s two-year investigation into the inflated fuel economy ratings of some 1.2 million Hyundai and Kia vehicles.
The EPA and Department of Justice announced the settlement deal at a press conference.
Under the settlement, Hyundai and Kia will pay a $100 million civil penalty, spend $50 million to establish an independent fuel economy certification group and forfeit some 4.75 million greenhouse gas emission credits the companies have banked under the EPA’s tailpipe emissions regulations — estimated to be worth more than $200 million, according to a joint statement by the Justice Department and EPA.
“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,” Attorney General Eric Holder said in a statement.
“This type of conduct quite simply will not be tolerated. 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.”