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Hyundai, Kia Damage Control (11/2/12)

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Fri, 2 Nov 2012|

Hyundai-Kia offering debit cards for inflated MPG | Rechtin's mileage doubts | Lapham: How Korean duo can redeem themselves


Automatically Generated Transcript (may not be 100% accurate)

We're gonna make this right. And will be more true than ever to ensure our vehicles deliver outstanding Hillary. May have cult -- Hyundai and Kia you admit they overstated MPG. On the hundreds of thousands of vehicles. And undertake a multi billion dollar effort. To make it up to customer. Details that. Thanks for looking in on this Friday I'm Tom -- back procedural errors during testing. Hyundai and Kia I'd say that's how they got the MPG wrong on 90002011. To 2013 vehicles. This impacts roughly 35%. Of the approximate two point seven million vehicles. I'm -- he has sold during this period. And in an unprecedented. Move to compensate customers for the missing miles per gallon. The auto makers will be allowed debit cards to current and former owners. Plus tacked on a 15%. Premium because of the inconvenience. It's a staggering blow for companies that have prided themselves on fuel efficient cars. In paying back consumers is sure to cost the companies millions of dollars. Here's Hyundai motor America CEO John Kravchuk. Our basic philosophy here is we're going to spend what it takes. And make it right for custom. OK so here's how the program work each automaker has set up a consumer website listing affected vehicles. In providing instructions on how to get reimbursed. Those sites are Hyundai MPG info dot com and Kia MPG info dot com. He has Michael Sprague says dealers then come into the picture. After registering online. Customers will be instructed to have their mileage validated at their preferred dealership. The exact reimbursements will then be calculated based on three factors. Miles accumulated on the car. Our original and revised MPG ratings and average fuel prices. Both spreads won't run ads to educate consumers including an open letter to run in Sunday newspapers. Now as for dealers. -- said dealer councils were notified of the situation yesterday. In individual dealers were contacted by email this morning. He said revised window stickers are headed to dealerships. In in the -- For those cases we've got special vaccine. Going to our dealerships. That we are ensuring consumers understand and -- off before -- by the car that there's an understanding that. The pilot ratings force somebody pretty effective vehicles. Haven't actually. He said the MPG adjustments won't reduce -- big key is fleet wide average fuel economy. By one mile per gallon to 26. -- to drop of about 3%. Hyundai specifically had been touting its forty MPG lineup for nearly two years. Here's a 2011 commercials starring rappers complaining about high gasoline price. I'm forty it doesn't really phase. Miles a gallon. So and win Sunday's -- different options but Automotive News West Coast editor mark -- didn't had doubts about hunt these MPG claims. Dating back to April 2011. That's when he compared the Honda Civic. And Hyundai Elantra. Now one thing the -- is bragging about it just 49 miles per gallon city forty highway. Well I just -- a gas station I got 25 point two miles per gallon. He gets exploited Sunday. That in December during a sub compact shoot out wrecked and took the Hyundai Accent claimed MPG to pass. Sadly for the claimed 3040. MPG reading I only got 26. For continuing coverage of this story stay with auto In for his take on this topic which turned out Automotive News executive editor at overlap. These could be the worst of times and the best of times for Hyundai and Kia. You can be sure that their brand images will take a quick hit after admitting that some of their highly touted EPA mileage ratings were overstated. A loss of consumer confidence is real possibility. And they know. That's why they're doing so much to try and make things right with their owners Hyundai and Kia have been and a terror in the US market. Growing by leaps and bounds seemingly doing and saying everything right the last thing they want it collapsed back to where they started. Look other brands have faced devastating problems and found ways to use adversity to enhance their brand value by taking care of their customers. With the right attitude Hyundai and Kia can do the same. If they can just avoid feeding frenzy. By lawyers. I'm Edward black film and that style IC. Thanks that that is our time for today. Monday morning on first shift our Jesse Snyder asks are we better off now than we were four years ago. His answer you know by the numbers report. Have a great weekend everyone.

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