Hyundai will pay $30 million to settle overstated horsepower lawsuit
06-22-2004, 09:16 AM
#1
Moderator Alumnus
Thread Starter
Join Date: Oct 2000
Location: Washington DC (NOVA)
Age: 52
Posts: 16,399
Likes: 0
Received 8 Likes
on
8 Posts
Hyundai will pay $30 million to settle overstated horsepower lawsuit
Hyundai will pay $30 million to settle overstated horsepower lawsuit - - By MARK RECHTIN | Automotive News - - Source: Autoweek
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."
Jason Erb, Hyundai Motor America senior counsel, says Hyundai had disclosed the errors and embarked on a goodwill program of free oil changes - a settlement that was thrown out of a Texas court before the lawsuit gained class-action status in California.
"Most people didn't feel this was a big deal," Erb says. "There were 44 people who said Hyundai wasn't paying enough, but 10 times that many thought the suit was frivolous."
One Hyundai owner who wanted nothing to do with the settlement was Gary Thompson of Solana Beach, Calif., who drives a 2000 Elantra. He considers the difference between the 136 hp of his car and the 140 hp cited by Hyundai literature to be inconsequential.
"These damages and attorney fees will go to the bottom line of Hyundai. The corporate officers are not going to get their salaries reduced over this," Thompson says. "So it's a situation where the perpetrators are not going to be punished, and the customers and shareholders will bear the burden of the cost."
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."
Jason Erb, Hyundai Motor America senior counsel, says Hyundai had disclosed the errors and embarked on a goodwill program of free oil changes - a settlement that was thrown out of a Texas court before the lawsuit gained class-action status in California.
"Most people didn't feel this was a big deal," Erb says. "There were 44 people who said Hyundai wasn't paying enough, but 10 times that many thought the suit was frivolous."
One Hyundai owner who wanted nothing to do with the settlement was Gary Thompson of Solana Beach, Calif., who drives a 2000 Elantra. He considers the difference between the 136 hp of his car and the 140 hp cited by Hyundai literature to be inconsequential.
"These damages and attorney fees will go to the bottom line of Hyundai. The corporate officers are not going to get their salaries reduced over this," Thompson says. "So it's a situation where the perpetrators are not going to be punished, and the customers and shareholders will bear the burden of the cost."
06-22-2004, 09:48 AM
#2
Outnumbered at home
WTF is with manufacturers now? Mazda doing that shit, Hyundai as well. Christ how hard is it to get the right rating before you release the car. Think they would have learned this by now.
Thread
Thread Starter
Forum
Replies
Last Post
Yumcha
Automotive News
1
09-25-2015 06:14 PM
action, card, class, debit, erb, goodwill, honda, horsepower, hyundai, jason, jasonerbhyundai, lawsuit, motors, overstated, program, settlement
