Hyundai, Kia reach $41.2m settlement with multiple states

2016 Kia Sorento SX-L
This product image provided by Kia Motors shows the 2016 Sorento 3.3-liter V6 SX-L. For 2016, the Kia Sorento sport utility vehicle is larger than its predecessor, has new, handsome styling and is surprisingly refined. (Kia Motors via AP)

DETROIT (AP) – South Korean automakers Hyundai Motor Co. and Kia Motors Corp. will pay $41.2 million to 33 states and the District of Columbia to settle an investigation into their fuel economy ratings.

The fine is the latest in the ongoing fallout from misstated mileage numbers on more than 1.2 million vehicles in the U.S.

In 2012, Hyundai and Kia restated the mileage on one-quarter of their 2011-2013 model year vehicles after the U.S. Environmental Protection Agency questioned their mileage numbers. The companies deny they violated the law, and instead cite lack of clarity in EPA test procedures.

The companies paid $300 million in penalties to the U.S. government in 2014. They say they have also reimbursed around 75 percent of customers.

A class action lawsuit remains subject to an ongoing appeal.

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