Hyundai will pay $30 million to settle overstated horsepower lawsuit
MARK RECHTIN
Automotive News
LOS ANGELES -- Hyundai Motor America will pay owners about $30 million in compensation because it overstated horsepower figures on its vehicles for more than a decade.
The compensation comes in the form of debit cards and dealership service vouchers, according to a court settlement reached last week.
About 858,000 Hyundai owners were eligible to take part in the class-action lawsuit, which was settled last week in Orange County (Calif.) Superior Court. A customer can choose either a same-as-cash debit card worth from $50 to $225, or a debit card worth as much as $325 in parts and service at Hyundai dealerships.
Hyundai overstated the ratings on about 1.3 million vehicles from the 1992 to 2003 model years. Ratings on some six-cylinder models were off by as much as 20 hp. Only owners of cars with horsepower overstated by more than 2.5 percent are included in the settlement. More than 400,000 units had horsepower numbers overstated by more than 4 percent.
Plaintiffs' attorney Dan Girard says 120,000 claimants have stepped forward. That would trigger about $20 million in claims. Since damages can be claimed until July 29. The total count will likely be closer to 200,000 claimants and $30 million in damages, Girard says. Also, plaintiffs' attorney fees will be levied, which could cost as much as $10 million.
"It's a very competitive market," Girard says. "People shop for cars online with vehicle comparators on Web sites to see how cars stack up. Every little edge can help in a situation like that. Hyundai was in the wrong, and they should pay dearly for that."
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MARK RECHTIN
Automotive News
LOS ANGELES -- Hyundai Motor America will pay owners about $30 million in compensation because it overstated horsepower figures on its vehicles for more than a decade.
The compensation comes in the form of debit cards and dealership service vouchers, according to a court settlement reached last week.
About 858,000 Hyundai owners were eligible to take part in the class-action lawsuit, which was settled last week in Orange County (Calif.) Superior Court. A customer can choose either a same-as-cash debit card worth from $50 to $225, or a debit card worth as much as $325 in parts and service at Hyundai dealerships.
Hyundai overstated the ratings on about 1.3 million vehicles from the 1992 to 2003 model years. Ratings on some six-cylinder models were off by as much as 20 hp. Only owners of cars with horsepower overstated by more than 2.5 percent are included in the settlement. More than 400,000 units had horsepower numbers overstated by more than 4 percent.
Plaintiffs' attorney Dan Girard says 120,000 claimants have stepped forward. That would trigger about $20 million in claims. Since damages can be claimed until July 29. The total count will likely be closer to 200,000 claimants and $30 million in damages, Girard says. Also, plaintiffs' attorney fees will be levied, which could cost as much as $10 million.
"It's a very competitive market," Girard says. "People shop for cars online with vehicle comparators on Web sites to see how cars stack up. Every little edge can help in a situation like that. Hyundai was in the wrong, and they should pay dearly for that."
Full Story Here