Kia has proposed a settlement for disputes regarding the Korean automaker’s restatement of fuel economy ratings from November 2012.
The proposed settlement affects current and former owners and lessees of vehicles affected by the restatement, which is about 300,000 vehicles from the 2011-2013 model years. The settlement is valued at approximately $185 million, though the final number will be determined by how many customers elect to participate in a lump-sum payment option or remain on the Korean automaker’s lifetime reimbursement program.
The proposed lump-sum payment amount will vary by vehicle and ownership type and will account for previously received compensation. The estimated average payment will be about $667 for retail customers. According to the Korean automaker, owners can also elect for options such as a dealership credit of 150 percent of the lump-sum payment amount or a 200-percent credit of the cash amount towards the purchase of a new Kia vehicle.
The proposed settlement is expected to be reviewed for a preliminary approval early next year.
“Kia Motors is a responsible company, and the proposed settlement enhances our goal of making things right for our customers by providing new reimbursement options,” said John Yoon, KMA executive VP of HR, Administration, Diversity Relations, and General Counsel. “Kia Motors is fully committed to taking care of its customers, and today’s settlement adds flexibility by adding lump-sum payment options to the transparent reimbursement program introduced last year.”
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