The Ministry of Land, Infrastructure and Transport has imposed penalties on three automakers that exaggerated the fuel efficiency of their cars, officials said Monday.
It slapped fines of 1 billion won ($854,000) each on Hyundai Motor and GM Korea, and 430 million won on Ssangyong Motor, they said. This is the second time the ministry has disciplined automakers for blown-up mileage claims since it took a similar step with Ford Motor in July.
The combined fuel economy of Hyundai Motor's sports utility vehicle, Santa Fe, was 8.3 percent lower than reported to the ministry and that of Ssangyong Motor's Korando Sports model 10.7 percent less, at a test in 2013, officials said. GM Korea's Chevrolet Cruze also showed a discrepancy of -5 percent, beyond the permitted error range.
The ministry levies fines equivalent to 0.1 percent of sales of affected models from the time of first shipment to market to the rectification of exaggerated mileages, with an upper limit of 1 billion won. Ford Motor paid only 2 million won as sales of its models involved, Fusion Hybrid and Lincoln MKZ Hybrid, were minimal, they said.
Hyundai and GM plan to pay up to 400,000 won in compensation to drivers while Ssangyong will act according to the result of a class action filed by consumers.