Embarrassing Mistake Proven Costly for Kia

Between 2010 and 2012, Kia and Hyndai auto-mobiles have had misrepresented mileage statements on many of their models, leaving Canadians with unexpected fuelling costs and Kia with a law suit. Earlier this month, the companies had admitted to overstate the efficiency of various models.

The mistake has raised concern regarding the legitimacy of other mileage estimates given to customers. It has become popular among car companies to capitalize on the public concern regarding rising fuel costs and enviromental degredation by marketing the efficiency of their models.

Both automakers will be forced to change the “sticker” mileage (some models by 6MPG!) and reimburse the near million customers. The reimbursement will be based on the mileage of the vehicles for the lifetime of the cars on what the customers would have saved had the mileage been correct in the first place. The companies also plan to provide a 15% compensation for the mislead customers.

More costly then the reimbursement itself is the loss in trust for not only Kia or Hyundai, but also the loss of customer loyalty and the birth of many sceptics.

Web References: http://www.bloomberg.com/article/2012-11-05/aPfa82lfHc3Q.html

http://www.veloster.org/forum/2-hyundai-veloster-news-reviews/9611-hyundai-kia-admit-fuel-economy-numbers-not-accurate.html

 

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *