Hyundai and Kia, two emerging automakers, were accused of inflating their MPG (miles per gallon) numbers to attract potential buyers
Hyundai motor group has become a well known name in the past few years thanks to a new, stylish line of economical vehicles that are priced very competitively. Many buyers cite the impressive MPG claims by Hyundai vehicles as one of the primary reasons they purchased vehicles from the Korean car manufacturer.
In late 2012 however, owners of 2013 Hyundai and Kia models complained that they weren’t getting the numbers they were promised. The environmental Protection Agency (EPA) took notice of this and immediately started an audit to investigate the situation. Their investigation revealed that the majority of Hyundai and Kia models had inflated MPG ratings. The EPA ensured that the automakers correct their rating immediately, and some cars went down as much as 6 MPG in fuel economy ratings.
This was a major blunder for Hyundai Motors. Fuel economy is a major factor for most buyers when choosing a vehicle, so for Hyundai to adjust these numbers in their favour was an unethical marketing ploy. Since EPA only audits about 15% of vehicles, consumers should still be concerned with the validity of MPG ratings. The mistake proves to be a costly one, as Hyundai and Kia owners will receive a card based on the kilometers driven and price of gasoline, with an additional 15% added. The scandal is sure to affect future sales too, as consumers will be reluctant to trust Hyundai and Kia. The automakers’ brand promise will now be questioned for the near future. What was once known as an up-and-coming automaker will now have to adjust their marketing strategy to help solidify its brand image.
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Very interesting post Robby Gill. I would like to bring the aspect of brand image and customer loyalty into attention. You stated that Huyndai and Kia will have to adjust their marketing strategy in order to solidify brand image; intact at the moment Kia and Hyundai definitely need to reacquire customer trust in order to gain customer loyalty in the long run. Offering credit to whom they did wrong to may be one way as stated in the post, however they need to develop a key marketing strategy to change up how consumers are currently viewing the Kia and Hyundai brand. It will be difficult because they have not established themselves in the automobile market.