Park Jin-hai primarily focuses on K-dramas, entertainment shows and actor interviews. Beyond that, she also pens articles covering the broader arts scene, with a particular emphasis on classical music, dance and various aspects of lifestyle. Since joining The Korea Times in 2013, she has made significant contributions in the realms of hallyu (Korean wave), industry news and international affairs.
Hyundai to pay big fine in US
By Park Jin-hai
Hyundai Motor and Kia Motors have agreed to pay a combined $300 million in penalties in the United States for overstating gas-mileage figures, the automaker said Tuesday.
It is the largest penalty to be slapped on an automaker in U.S. history.
“This is the last procedure that closes the 2012 case. Although there have been some discrepancies in interpreting the EPA fuel economy testing’s standards, we chose to end the dispute and focus our corporate potential more on product marketing and technology development,” said a company official.
Under the agreement with the U.S. Environmental Protection Agency (EPA) and the Justice Department, the Korean auto group will pay $100 million in civil penalties as well as forfeiting $200 million in greenhouse-gas emission credits.
The deal comes on the heels of the firm’s $400 million settlement of a U.S. class-action suit over its mileage claims in December, through which it paid each affected vehicle owners about $353 each.
The adjustment affects 1.2 million vehicles, or a quarter of Hyundai-Kia 2011-2013 vehicle models, and will reduce their combined city/highway fuel economy by 1 to 2 miles per gallon.
The automakers have also agreed to spend $50 million to establish an independent group to certify future test results.
Since 2012, the group has been under investigation by the EPA over suspicions that it had overstated fuel economy on the window stickers of their cars in dealer showrooms.
Hyundai admitted its mileage overstatement on popular vehicles, including the Accent and Elantra compact cars, the sporty Veloster coupe and the Santa Fe SUV in November 2012. Kia admitted overstating mileage claims for its Rio and Soul models.
Hyundai and Kia’s mileage fiascos have cost the company more than $700 million.
“Hyundai has acted transparently, reimbursed affected customers and fully cooperated with the EPA throughout the course of its investigation,” said David Zuchowski, Hyundai brand chief executive in the U.S., in a written statement. “We are pleased to put this behind us, and gratified that even with our adjusted fuel economy ratings, Hyundai continues to lead the automotive industry in fuel efficiency and environmental performance.”
In a separate case, Hyundai Motor also agreed in August to compensate owners of Santa Fe sport utility vehicles up to 400,000 won ($388) each for exaggerating the vehicles’ fuel efficiency in Korea.