Hyundai said on Monday that it would offer more ways to compensate owners for overstating its cars’ gas mileage as part of an estimated $210 million settlement of a court action.
The carmaker said it would allow about 600,000 current and former owners and lessees of cars from the 2011, 2012 and 2013 model years to choose among four ways to receive compensation for increased fuel costs associated with the incorrect fuel economy ratings.
Customers may choose a single lump sum payment instead of automatically enrolling in the lifetime reimbursement program that Hyundai introduced when it restated its fuel economy ratings last year. Consumers may also choose a dealership credit of 150 percent of the lump sum cash payment or a 200 percent credit toward the purchase of a new Hyundai vehicle.
Hyundai said in November 2012 that it had overstated the fuel economy for about 27 percent of its vehicles sold in the United States between 2010 and 2012 by 1 to 2 miles per gallon for combined city and highway driving. At that time, it introduced a reimbursement program that covered the additional fuel costs based on the car’s actual mileage and regional fuel costs, as well as a 15 percent premium to compensate drivers for the inconvenience.
“We are pleased with the proposed settlement,” W. Gerald Flannery, general counsel of Hyundai Motor America, said in a statement Monday. “It demonstrates the ongoing Hyundai commitment to taking care of its customers.”
The value of the settlement depends on the number of customers who choose the lump sum over the lifetime reimbursement program, the company said. Hyundai estimated that the proposed lump sum amount would result in an average payout of $353.
Hyundai will send notices to owners and lessees early next year if a federal judge approves the settlement.