U.S. Fines Automakers Hyundai and Kia

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http://www.nytimes.com/2014/11/04/us/pol...leage.html?_r=0 The Justice Department and the Environmental Protection Agency announced today that the Hyundai Motor Company and the Kia Motors Corporation would pay a combined $100 million penalty as part of a settlement for overstating vehicle fuel economy standards on 1.2 million vehicles, a violation of the Clean Air Act. The penalty is the largest ever paid for violation of the Clean Air Act, government officials said. In addition, the companies will forfeit $200 million in greenhouse gas emissions credits, which auto companies earn by building vehicles with lower emissions than are required by law. “I believe this will send an important message to automakers around the world that they must comply with the law,” said Attorney General Eric H. Holder Jr.
 
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Huh... I recall when the last generation Sonata was going through its press introduction, there was a big event staged in California. Practically all of the attendees beat the EPA numbers on their long drives, and one of them got something ridiculous, like 60+ MPG, on the non-hybrid model. Makes me wonder if Hyundai was letting them drive ringers...
 
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Trusting a business whose only goal is to create profits to determine their own fuel economy ratings, then fine them when they lie. Now that is a sneaky plan. How about letting another automaker do the fuel economy testing, and change them up every couple of years.
 
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Originally Posted By: 123Saab
http://www.nytimes.com/2014/11/04/us/pol...leage.html?_r=0 In addition, the companies will forfeit $200 million in greenhouse gas emissions credits, which auto companies earn by building vehicles with lower emissions than are required by law.
What law? Laws are passed by Congress, and no law regulating greenhouse gas emissions was ever passed by Congress. It's the EPA that is regulating greenhouse gas emissions limits, even though they never had a mandate from Congress to do so.
 

Nick1994

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Didn't this previously happen for Hyundai and Kia? And I thought MPG was listed and determined by the EPA, not the manufacturer?
 
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Originally Posted By: Nick1994
Didn't this previously happen for Hyundai and Kia? And I thought MPG was listed and determined by the EPA, not the manufacturer?
The manufacturer has to do their own testing to the guidelines of the EPA test cycle, then submit their findings.
 
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Originally Posted By: 123Saab
“I believe this will send an important message to automakers around the world that they must comply with the law,” said Attorney General Eric H. Holder Jr.
Yeah, doing business in the US of A is risky business. Tread litely, and maybe take your business elsewhere.
 
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Originally Posted By: A_Harman
Originally Posted By: 123Saab
http://www.nytimes.com/2014/11/04/us/pol...leage.html?_r=0 In addition, the companies will forfeit $200 million in greenhouse gas emissions credits, which auto companies earn by building vehicles with lower emissions than are required by law.
What law? Laws are passed by Congress, and no law regulating greenhouse gas emissions was ever passed by Congress. It's the EPA that is regulating greenhouse gas emissions limits, even though they never had a mandate from Congress to do so.
Look up the Clean Air Act and SCOTUS ruling that CO2 emissions were a pollutant sealed the deal. IJS
 
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Originally Posted By: HerrStig
What's the penalty for dangerous ignition switches?
$2 billion and counting...
 
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Originally Posted By: Cadenza
Same question I always ask: who gets to keep the money?
It goes into one of those projects we never hear about
 
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Whoops. Hyundai recently completed its shiny happy new U.S. corporate HQ just up the road. Seems they're building decent machines for Yanks these days and have become quite profitable. A fifty million dollar infraction on ~1/2 a million cars and forfeiting some clever carbon offset accounting shenanigans won't phase 'em even a wee bit. As far as our so-called Justice Department and Holder's minions, perhaps some are thankful we don't get all the government for which we've paid. smile
 
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Originally Posted By: Boczech
Originally Posted By: Cadenza
Same question I always ask: who gets to keep the money?
It goes into one of those projects we never hear about
Yea it seems crooked to me that they have to pay the EPA a fine. Was it the EPA who got defrauded? Or the consumer? The GM ignition switch fines - who gets that? The government or the families who lost loved ones?
 
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It's a settlement, so it's something that beats having an even larger more onerous fine or punishment (like crushing brand new guzzlers). GM sold loss leader cavaliers for $7995 at the deadline to get the year's tally just under the average. Hyundai should have planned better.
 
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