Two car makers pay penalties totalling US$350 million after misreporting the fuel performance of 1.2 million vehicles
The Hyundai Accent is one of six models sold with inaccurate fuel performance information
(Pic: Flickr/Michael Gil)
By Megan Darby
Two car makers have been made to pay out some US$350 million for breaching US pollution regulations.
Hyundai and Kia sold 1.2 million vehicles that will emit 4.75 million tonnes of greenhouse gases more than they told the Environmental Protection Agency (EPA).
The companies have been slapped with a US$100m fine for violating the Clean Air Act – the largest such penalty in the Act’s history.
They also forfeit greenhouse gas emission credits worth an estimated US$200m for the emissions they failed to declare.
And they must spend around US$50m on measures to improve their testing and monitoring to prevent a repeat of the failures.
“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.
“Businesses that play by the rules shouldn’t have to compete with those breaking the law.
“This settlement upholds the integrity of the nation’s fuel economy and greenhouse gas programs and supports all Americans who want to save fuel costs and reduce their environmental impact.”
The US justice department and California Air Resources Board took the car makers to court after auditors found errors in their emissions data.
Hyundai and Kia sold six models of car in 2012 and 2013 that did not meet the specifications they had certified with the EPA.
They had also misled consumers, overstating the fuel economy of many of these vehicles by 1 to 6 miles per gallon.
“This unprecedented resolution with Hyundai and Kia underscores the justice department’s firm commitment to safeguarding American consumers,” said attorney general Eric Holder.
“This type of conduct quite simply will not be tolerated.”