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Could Hyundai’s fuel economy woes spread to others?

Hyundai’s Motor Company’s admission that it made overestimated the fuel economy of some of its vehicles (see story), has other carmakers worried, according to Reuters UK.

The new agency reports that speculation is rife among industry executives and analysts that more carmakers will have to backtrack on their economy claims too.

Hyundai's i30

Just last month, Hyundai and its subsidiary Kia accepted that fuel economy ratings were wrong for some 35 per cent of its 2011-2013 model year vehicles, over 900,000 vehicles.

Errors made during ‘coast down’ testing to establish fuel economy ratings for the US’ Environmental Protection Agency (EPA), meant that the vehicles achieved a higher fuel economy rating by at least one mile per gallon.

"I think we might see more of this,"Jake Fisher, the head of automotive testing at Consumer Reports told Reuters. "There are other vehicles that don't really stack up to the EPA estimates."

Although it seems that Hyundai’s sales in the US have so far been unaffected by the blunder, a compensation campaign for customers of affected vehicles, is predicted to cost the firm some $100 million a year according to Moody’s Investors Services. There is also a lawsuit pending over the error.

It only makes sense for the industry to come under scrutiny, said Gary Silberg, KPMG national auto industry leader.

"We're from an auditing firm. What you learn in auditing is that if you find one outlier you have to test some more," said Silberg. "It would be my guess that there are others."

Full story here: Reuters.

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Faye Sunderland

Filed under: Hyundai

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