Ford’s mileage refund may affect verdict on Hyundai

Ford Motor’s recent decision to compensate some 30 South Korean owners for inflated fuel efficiency ― the first of its kind here ― is likely to affect a similar verdict pending for Hyundai Motor this week.

Ford announced on June 12 that it was lowering the fuel economy ratings on six new cars and would refund more than 200,000 drivers on the extra money they would spend due to lower-than-promised fuel efficiency.

After the voluntary report by the Detroit-based carmaker, Korea’s Transport Ministry on Monday said it was carrying out follow-up measures as well.

“This is the first compensation case in Korea for mileage overstatement,” said a ministry official.

Nine owners of the Fusion Hybrid are expected to be paid 1.5 million won ($1,473), while 21 owners of the Lincoln MKZ Hybrid will receive 2.7 million won, according to the ministry.

Like in the United States, there is no legal basis in Korea to force carmakers to compensate on the discrepancies between stated and actual gas mileages, even though they face fines from regulators.

The unprecedented decision from a foreign carmaker seems to be applying pressure on two Korean carmakers, Hyundai Motor and Ssangyong Motor, which are both waiting for verdicts on their home turf.

The Transport Ministry plans on Thursday to reveal the results of its investigations into whether the fuel economy ratings of Hyundai’s Santa Fe and Ssangyong’s Korando Sport were inflated from what was advertised.

According to industry sources, the discrepancies have already been found to be wider than the legally allowable level of 5 percent, and some consumers may file lawsuits against the companies once the results are out.

In 2012, Hyundai and its affiliate Kia Motors offered compensation of up to 100 billion won to more than a million car owners in North America for mileage overstatement.

By Lee Ji-yoon (jylee@heraldcorp.com)