Kia and Hyundai Go to War in Santa Ana Court

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When Kia and Hyundai were forced to recalculate their gas-mileage claims after a government audit, the top two South Korean automakers may have believed regulatory fines and a consumer compensation plan would have ended the financial bleeding.

Think again, unless Kia and Hyundai can fight court challenges filed in Santa Ana federal court.

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Hyundai, whose new North American headquarters is rising along the 405 freeway in Fountain Valley, and Kia, whose corporate offices in Irvine opened in 2008, are being sued by consumers unhappy with exaggerated fuel-economy claims.

If those car owners are successful, analysts estimate it could cost Kia and Hyundai an additional $775 million. The first of two suits claims the value of Kias and Hyundais will decrease because of the controversy, while the 23 plaintiffs in the most-recent action target the compensation plan, claiming it "falls short of making this right for consumers."

In a statement from their attorney Rob Carey, the second class finds it unfair they must bring their cars in for odometer checks and reapply every year for monies due under the plan. While Kia officials say they are reviewing the lawsuit, Hyundai execs react that the plan is the best and fastest way to make sure customers are compensated.

Moody's Investors Service estimates (via Reuters) that burned customers will receive about $100 million in fuel under the plan, but that Kia and Hyundai are vulnerable to other costs. North America accounted for about 24 percent of Hyundai's global sales in the first nine months of 2012, according to Moody's.

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6 comments
johnrose7588
johnrose7588

Moral of the story... dont buy cars from asians. The asian community will sell to a black, white, indian, or any other race no problem. But its rare that they will buy from other races. They do buisness with there own kind, so its only fair we dont give them our buisness.

RocketJ
RocketJ topcommenter

 @johnrose7588 Is a Toyota made in Kentucky a US or Asian car? What about a Ford made in Taiwan?

MatthewTCoker
MatthewTCoker topcommenter

 @johnrose7588 Uh, so there's never been a documented problem with a car sold by a non-Asian? And what about non-Asians who sold these particular Kias and Hyundais?

johnrose7588
johnrose7588

@RocketJ point being that we just dont need to give our buisness to people who dont give it to us. Go and try to sell an asian anything and see his response. Ive been i have sales for 15a years. Demographics dont lie. Asians are cheep. So is the quality and care they put into their materials. They day of craftsmanship is long over. But unless you are asian yourself you will find it hard to sell anything to an asian. Thats my point. I refuse to do buisness with anyone who wont buy from me because im not their own race.

RocketJ
RocketJ topcommenter

 @johnrose7588  @RocketJ I am not trying to refute your points, just stating that identifying as US or Asian is more complex than looking at the emblem on the hood.

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