Hyundai and Kia Initiate Program to Adjust Fuel Consumption Ratings on Select Vehicles

Automakers' Average Fuel Consumption Rating Increased by 0.3 L/100km; Affected Vehicle Owners to be Compensated

TORONTO, Nov. 2, 2012 /CNW/ - Hyundai Auto Canada Corp. and Kia Canada Inc. today announced that they are correcting the fuel consumption ratings for approximately 172,000 vehicles sold between 2010 and 2012.

Procedural errors at the automakers' joint testing operations in Korea led to incorrect fuel consumption ratings for select vehicle lines. As a result of the corrections, Hyundai/Kia average combined fleet fuel consumption ratings are increased for the 2013 model year by 0.3 litres per 100 kilometres.

"I sincerely apologize to all affected Hyundai and Kia customers, and I regret these errors occurred," said Dr. W. C. Yang, Chief Technology Officer of Hyundai/Kia research and development.  "Following up on the EPA's (Environmental Protection Agency) audit results, we have taken immediate action to make the necessary rating changes and process corrections." The U.S. EPA certification is accepted by Environment Canada for auto imports into Canada.

Both companies are putting in place a comprehensive reimbursement program for affected current and former vehicle owners to cover the additional fuel costs associated with the fuel consumption rating change. Customers will receive a personalized, pre-paid credit card that will reimburse them for their difference in the combined fuel consumption rating, based on the average fuel price in their region and their own actual kilometres driven. In addition, as an acknowledgement of the inconvenience this may cause, we will add an extra 15 percent to the reimbursement amount.  Current owners will be able to refill their pre-paid credit card at any time for as long as they own the vehicle. Prior owners of affected vehicles who have already sold their cars will also be reimbursed using the same formula. For more information about reimbursement and a complete list of eligible vehicles, customers can visit www.hyundaifuelconsumption.ca and www.kiafuelconsumption.ca.

Hyundai Motor America and Kia Motors America are working cooperatively with the  EPA to correct fuel consumption discrepancies.  The fuel consumption rating discrepancies resulted from procedural errors during a process called "coast down" testing at the companies' joint testing operations in Korea. Coast down testing simulates aerodynamic, tire rolling resistance and drivetrain frictional losses and provides the technical data used to program the test dynamometers that generate fuel consumption ratings.  Affected vehicles and their before-and-after fuel consumption estimates are shown in the attachment.

With the adjusted fuel consumption ratings, the Hyundai and Kia brands will continue to deliver competitive fuel consumption performance in the industry and will continue to advance improvements in fuel efficiency through technology and innovation.

"Fuel efficiency, low emissions and safety are top priorities for us; they are built into every vehicle that we sell," said Steve Kelleher, President and Chief Executive Officer of Hyundai Auto Canada Corp.  "We are very sorry about the errors and we are committed to making sure the owners of every affected Hyundai vehicle are fully compensated.  We want to assure them and all of our customers that the environmental features and characteristics that are so important to Canadian drivers are equally important to us."

"A large part of Kia's success has been our ability to produce vehicles that meet both consumer and environmental needs," said William Lee, President and Chief Executive Officer (CEO) of Kia Canada Inc. "Kia Canada deeply regrets that this situation has occurred and will ensure all affected Kia customers will quickly receive fair compensation."

About Hyundai Auto Canada Corp.
Hyundai Auto Canada, established in 1983 and headquartered in Markham, Ontario, is a subsidiary of Hyundai Motor Company of Korea. Hyundai vehicles are distributed throughout Canada by Hyundai Auto Canada and are sold and serviced through more than 200 dealerships nationwide.

About Kia Canada Inc.
Kia Canada Inc. (www.kia.ca)-- a maker of quality vehicles for the young-at-heart -- is a subsidiary of Kia Motors Corporation (KMC) in Korea founded in 1999, and sells and services high quality class leading vehicles like the Soul, Forte, Optima and Sorento through a network of 176 dealers nationwide. Kia Canada Inc. employs 157 people in its Mississauga, Ontario headquarters and four regional offices across Canada, with an all-new state-of-the-art facility to open in Montreal shortly.

Affected Hyundai Models

Affected KIA Models

SOURCE: Hyundai Auto Canada Corp.