South Korean automakers Hyundai and Kia will pay a $100 million fine, the largest in Clean Air Act history, for inflating the fuel economy ratings of their vehicles, the Environmental Protection Agency said Monday.
The agreement stemmed from an investigation by the EPA and the Department of Justice into Clean Air Act violations based on the sale of about 1.2 million vehicles with overstated ratings by the two automakers. The inflated fuel economy ratings also resulted in the emission of about 4.75 million metric tons of greenhouse gases in excess of what the automakers certified to the EPA.
“This settlement upholds the integrity of the nation’s fuel economy and greenhouse gas programs and supports all Americans who want to save fuel costs and reduce their environmental impact,” said EPA Administrator Gina McCarthy. “Businesses that play by the rules shouldn’t have to compete with those breaking the law.”
The automakers also will spend $50 million on measures to prevent any future violations. Hyundai and Kia will forfeit 4.75 million greenhouse gas emission credits that the companies previously claimed, which the EPA said are worth about $200 million.