Hyundai and Kia violate US Clean Air Act
Hyundai and Kia will pay $100 million to settle allegations that they violated the Clean Air Act by selling over one million vehicles that emit many times more greenhouse gases than previously agreed.
According to the Corporate Crime Reporter 1.2 million vehicles will emit approximately 4.75 million metric tons of greenhouse gases in excess of what the car manufacturers certified to Environmental Protection Agency.
Hyundai and Kia will also forfeit 4.75 million greenhouse gas emission credits that the companies previously claimed, which are estimated to be worth over $200 million.
The complaint was filed jointly by the United States and the California Air Resources Board in the U.S. District Court for the District of Columbia.
It alleges that the car companies sold close to 1.2 million cars and SUVs from model years 2012 and 2013 whose design specifications did not conform to the specifications the companies certified to EPA, which led to the misstatements of greenhouse gas emissions.
Officials alleged that Hyundai and Kia gave consumers inaccurate information about the real-world fuel economy performance of many of these vehicles.
Hyundai and Kia overstated the fuel economy by one to six miles per gallon, depending on the vehicle.
Similarly, they understated the emissions of greenhouse gases by their fleets by approximately 4.75 million metric tons over the estimated lifetime of the vehicles.
This story has been added to our corporate database. The database powers all our live product guides, giving the score for each company on our rankings tables. Find out more about how we rate companies.
Ethical Consumer on Google+