Friday, November 2, 2012

Blog #10: Foreign Automakers Lie About Gas Mileage

The Environmental Protection Agency has recently discovered that Hyundai and Kia have overstated the gas mileage on over 900,000 vehicles covering the span of thirteen separate models from 2011 to 2013. The two automakers are ran by the same company in South Korea, although they market their products differently. The EPA began looking into the car makers after a rash of consumer started complaining about the gas mileage not living up to it's sticker number. When it came time for the annual audit, the Hyundai Elantra was added to the list. Since automakers run their own tests, the EPA audits fifteen per cent of all vehicles every year to keep an eye out for any shenanigans. The audit ultimately revealed that the fuel efficiency was overstated on nearly one-third of all sales in the last three years. The EPA has only had two similar cases since 2000, but none were as extensive as this. The Kia Soul was found to be the most overstated, now the 34 mpg SUV will be dropped down to 28 mpg. There hasn't been any word on whether legal action is going to be taken or not, but it's still a crime to internationally boost gas mileages. The executives of the company have promised to re-compensate consumers for the extra money they've been putting towards gas. While this turn of events probably won't be enough to ruin the automakers, it will still slow down their sales and profits. The reimbursements could accumulate well over $80 million, which is a substantial amount of money. Regardless of whether it was a procedural mistake or intentionally done, the two companies are still among the leading companies in fuel efficiency. This is also opening the eyes of other car makers, letting them know that the EPA isn't a joke and that they will take any action unnecessary.
http://www.washingtonpost.com/business/us-environmental-protection-agency-audit-finds-inflated-gas-mileage-in-hyundai-kia-models/2012/11/02/e922c1d4-24c3-11e2-92f8-7f9c4daf276a_story.html

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