The automakers are guilty of having sold vehicles whose emissions output was greater than they certified to the US EPA

Nov 4, 2014 20:57 GMT  ·  By
Hyundai and Kia enter historic settlement agreement with US Environmental Protection Agency
   Hyundai and Kia enter historic settlement agreement with US Environmental Protection Agency

Just yesterday, the US Environmental Protection Agency announced that, having been found guilty of lying about their cars' ecological footprint, automakers Hyundai and Kia both agreed to sign a settlement and pay a record $100 million (€80 million) fine.

In a statement, the Agency details that this civil penalty that Hyundai and Kia must pay for violations having to do with the testing and certification of cars sold in the US is the largest of its kind to have until now been issued under the country's Clean Air Act.

What exactly did Hyundai and Kia do?

It is understood that Hyundai and Kia both sold cars whose greenhouse gas emissions output was greater than what the automakers certified to the US Environmental Protection Agency. In doing so, they violated the country's Clean Air Act.

Information shared with the public says that, all in all, Hyundai and Kia sold approximately 1.2 million vehicles from model years 2012 and 2013 whose overall greenhouse gas emissions output was roughly 4.75 million metric tons greater than the automakers told the Agency it would be.

The cars targeted by the Environmental Protection Agency in this settlement agreement with the two automakers were the Hyundai Accent, Elantra, Veloster, and Santa Fe vehicles and the Kia Rio and Soul vehicles.

What's more, it appears that, apart from understating their fleets' ecological footprint, Hyundai and Kia provided customers with inaccurate information concerning the real-world fuel economy of several of the aforementioned vehicles.

Given the urgency to limit climate change and global warming by reducing greenhouse gas emissions resulting from various industries and from the transportation sector, the automakers' actions were not taken lightly by the US Environmental Protection Agency.

“This type of conduct quite simply will not be tolerated. And the Justice Department will never rest or waver in our determination to take action against any company that engages in such activities – whenever and wherever they are uncovered,” said Attorney General Eric Holder.

“This settlement upholds the integrity of the nation’s fuel economy and greenhouse gas programs and supports all Americans who want to save fuel costs and reduce their environmental impact,” added Agency Administrator Gina McCarthy.

Putting the automakers in the doghouse

Apart from having to pay the record civil penalty, of which Hyundai will cover $56.8 million (€45.46 million) and Kia $43.3 million (€34.66 million), the automakers must invest a combined $50 million (€40 million) in measures to ensure their working agenda never again goes against the Clean Air Act.

Besides, Hyundai and Kia are expected to forgo the use of approximately 2.7 million and 2.05 million greenhouse gas emission credits. As detailed by the Environmental Protection Agency, the value of these credits is estimated to amount to over $200 million (€160 million).

Commenting on this historic settlement agreement, Attorney General Eric Holder said, “This unprecedented resolution with Hyundai and Kia underscores the Justice Department’s firm commitment to safeguarding American consumers, ensuring fairness in every marketplace, protecting the environment, and relentlessly pursuing companies that make misrepresentations and violate the law.”