Automaker Pleased to Reach Agreement and Provide Affected Customers with
Alternative Reimbursement Options Including a Lump Sum Cash Payment
MISSISSAUGA, ON, Jan. 27, 2014 /CNW/ - Kia Canada Inc. today announced
that it has reached an agreement with current and former owners and
lessees of vehicles affected by the automaker's November 2012
restatement of fuel consumption ratings. The adjustment affected
approximately 41,000 2011-13 model year Kia vehicles. While today's
proposed settlement agreement is valued at up to approximately $23
million, the final number will be determined by the actual number of
customers that elect to participate in one of the settlement's lump-sum
payment options, or instead to remain in the lifetime reimbursement
program Kia Canada introduced at the time of the restatement, which
reimburses based on actual fuel expenses.
"Kia Canada is pleased with the proposed agreement, which demonstrates
Kia's ongoing goal of ensuring our customers are fairly compensated,"
said Kay Nguyen, Managing Legal Counsel Kia Canada Inc. "Kia Canada is
fully committed to customer satisfaction, and this proposed settlement
provides flexibility for our customers by adding additional payment
options to the existing reimbursement program that Kia previously
Kia Canada has already established a program that provides compensation
to affected owners for added fuel costs as a result of the fuel
consumption ratings adjustments at the time of the original restatement
- plus an extra 15 percent for any inconvenience. Affected owners and
lessees are reimbursed based on their actual kilometers driven and the
fuel costs for the region in which they live.
Under the terms of the proposed settlement, Kia Canada and the
plaintiffs agreed to add lump-sum payment options. The proposed cash
lump-sum amount varies by vehicle and ownership type and accounts for
previously received compensation and will be reduced by any amounts
already received through Kia Canada's existing reimbursement program.
Consumers can also elect other options such as a dealership credit of
150% of the lump sum cash payment amount, or a credit of 200% of the
cash amount towards the purchase of a new Kia vehicle.
"Today's agreement clearly articulates Kia's willingness to take care of
its customers, and Kia should be commended for doing the right thing,"
said Michael Peerless of Siskinds LLP, the lead plaintiff lawyer
involved in the settlement. "This settlement provides additional
options for consumers by allowing them to choose from a number of lump
sum payment options, which provides a real benefit to the class of
Courts in Ontario and Quebec are expected to review the agreement for
preliminary approval in early 2014. Assuming approval is granted,
notices will be sent to all affected class members.
Kia Canada Inc. (www.kia.ca - www.facebook.com/kiacanada) a maker of quality vehicles for the young-at-heart is a subsidiary of
Kia Motors Corporation (KMC) which was founded in 1999 and sells and
services high quality, class leading vehicles like the Soul, Forte,
Optima and Sorento through a network of 184 dealers nationwide. Kia
Canada Inc. employs 161 people in its Mississauga, Ontario headquarters
and four regional offices across Canada, with an all-new
state-of-the-art facility in Montreal. Kia's brand slogan "The Power to
Surprise" represents the company's global commitment to surprise the
world by providing exciting & inspiring experiences that go beyond
SOURCE: KIA Canada Inc.
For further information:
National Public Relations and Corporate Partnerships Manager
Kia Canada Inc.