Hyundai’s action came after the government ruled the fuel economy of the midsize SUV was exaggerated last February. (image: Automotive Rhythms/flickr)
SEOUL, Aug. 13 (Korea Bizwire) — Hyundai Motor decided to make voluntary compensation amid the controversy for its mileage exaggeration on its Santa Fe mid-size crossover model.
On August 12, Hyundai released a statement saying that it will alter the standard mileage of the Santa Fe 2.0-liter Diesel 2WD AT model from 14.4 kilometers per liter to 13.8 kilometers per liter and it will offer up to 400,000 won (US$389) of compensation to the owners.
As it sold some 140,000 units of the model domestically since January 2013, if Hyundai pays the maximum amount to every owner, it will cost a total of 56 billion won($54 million).
Hyundai’s action came after the government ruled the fuel economy of the midsize SUV was exaggerated last February. The company said the voluntary measure is being taken in light of the confusion the mileage controversy has caused among people who bought the model.
The largest auto maker in Korea said, “There can be discrepancy in fuel economy depending on the test equipment and standards. However, we have to follow the government’s test results. As the transportation ministry ordered us to take a follow-up action with the government results, we decided to alter the fuel efficiency.”
Compensation amount is based on the assumption that a car owner will operate the car for at least five years and the distance traveled by each year of 14,527 kilometers, which is the national average for SUVs like the Santa Fe model. Extra money will be given to reflect the inconvenience caused.
By John Choi (johnchoi@koreabizwire.com)
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