MPG scandal will cost $362M to Hyundai and KIA

by Nov 6, 2012All News, Hyundai, Kia2 comments

According to South Korean economy analyst Nam Kyeong Moon, Hyundai and KIA will spend an estimate $362 million to compensate the 900,000 owners affected by the erroneous fuel consumption figures claimed by both automakers in the States since 2010.

However, Hyundai and KIA might be facing a greater penalty in terms of brand image and customer loyalty. Masamichi Nakamura, executive director from Interbrand (a company that evaluated brand value of worldwide corporations) told the media today that ‘this is going to hurt the [Hyundai and KIA] image’, because ‘brand value isn’t based just on analysts forecasts, but also on consumer image and reputation’.

This statements are supported by the tumbling down of both carmakers on the stock prices last week, with Hyundai ending with -7.2% and KIA with -6,9%. After the conversations between Hyundai-KIA and the Enviromental Protection Agency, the average MPG figures for both automakers are adjusted down of 3 percent, from 27 to 26 MPG.

Probably this story will last, so stay tuned to get the latest updates.

Written by Jose Antonio Lopez

Passionated about Korean cars from Hyundai, Kia & Genesis. Photographer. I love being in nature, hiking. Tech lover.

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