Hyundai, Kia earmark funds for mpg tab
SEOUL -- Hyundai Motor Co. said it set aside 240 billion won, or about $225 million, and its affiliate Kia Motors Corp. said it has set aside $187.1 million, to reimburse customers after saying in November that the companies overstated the fuel efficiency of some models in the United States, Bloomberg reported.
The two South Korean automakers have offered customers of 900,000 vehicles prepaid fuel cards to compensate them for the differences in fuel economy as determined in government tests and the mpg numbers that appeared on the vehicles' window stickers.
In November, Moody's Investors Service estimated Hyundai and Kia would spend about $100 million to compensate owners.
The provisions came as both companies said their earnings in the quarter that ended Dec. 31 fell on an unfavorable exchange rate for the won and predicted their 2013 earnings also would be hurt by currency concerns.