Auto Company Pleased to Secure an Agreement for Cases and Provide
Affected Owners with Choice of Alternative "Lump Sum" Reimbursement
MARKHAM, ON, Jan. 27, 2014 /CNW/ - Hyundai Auto Canada Corp. today
announced that it has entered into an agreement with plaintiffs
representing current and former owners and lessees of vehicles affected
by the auto company's November 2012 restatement of fuel economy
ratings. The adjustment affected approximately 130,000 Hyundai
2011-2013 model year vehicles, increasing their combined city/highway
fuel consumption by 0.2-0.8 L/100km. While today's agreement is valued
at up to $46.65 million in cash compensation plus other available
options, that number is dependent on how many customers elect to
participate in the settlement's one-time lump sum payment option or
remain in the existing reimbursement program Hyundai introduced at the
time of the restatement.
"We are pleased with the proposed settlement, which we believe once
again demonstrates Hyundai's commitment to taking care of its
customers," said Faithlyn Hemmings, Senior Legal Counsel at Hyundai
Auto Canada Corp.
At the time of the restatement, Hyundai provided a reimbursement program
to cover the additional fuel costs associated with the rating change -
plus a 15 percent premium in acknowledgement of the inconvenience - to
customers for as long as they owned or leased an affected vehicle.
Affected owners and lessees are compensated based on their actual
kilometers driven and the fuel costs for the region in which they live.
"While customers have responded favorably to the original reimbursement
program, today's settlement is designed to provide them with an
additional compensation option, again intended to make customers fully
whole for Hyundai's fuel economy ratings restatement," said Hemmings.
"Hyundai should be commended for doing the right thing and resolving
this issue with its customers. The fact that a class member is able to
choose one of a variety of lump sum payments, or to remain in the
reimbursement program, provides real benefits to this large class of
customers," said Michael Peerless of Siskinds LLP, the lead plaintiff
lawyer involved in the settlement.
Under the terms of the proposed settlement, a single lump sum payment
will be provided as an option to the original reimbursement program.
The lump sum payments will vary by type of vehicle, and will be reduced
for any amounts already received through Hyundai's existing
reimbursement program. For example, an individual owner who purchased a
new 2012 Elantra would receive a lump sum payment of $361, minus any
previous reimbursement payments. Affected Hyundai owners may elect the
one-time lump sum cash payment or remain in the auto company's ongoing
reimbursement program for as long as they lease or own the affected
vehicle; the choice is theirs. Consumers can also elect other options,
such as a dealership credit of 150 percent of the lump sum cash payment
amount, or a credit of 200 percent of the cash amount toward the
purchase of a new Hyundai vehicle.
Courts in Ontario and Quebec are expected to review the agreement for
approval in early 2014. Assuming approval is granted, notices will then
be provided to all affected customers.
HYUNDAI AUTO CANADA CORP.
Hyundai Auto Canada, established in 1983 and headquartered in Markham,
Ontario, is a subsidiary of Hyundai Motor Company of Korea. Hyundai
vehicles are distributed throughout Canada by Hyundai Auto Canada and
are sold and serviced through 210 dealerships nationwide. Learn more at
SOURCE: Hyundai Auto Canada Corp.
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