Paying Up

About 840,000 owners of Hyundai Motor Co. Ltd. and Kia Motors Corp. vehicles have been offered a settlement in an unusual legal case that may cost Hyundai a minimum of $85 million.

A class-action lawsuit on behalf of the owners charged Hyundai Motor of America deliberately overstated engine power for certain vehicles — ranging from model years '96 to '02 — by as much as 10%. The suit also charged Hyundai with deceptive trade practices to gain an unfair competitive advantage.

Settlement of the claims ranges from $50 to $225 debit cards, or $100 to $325 in dealer services, depending on the vehicle model.

Plaintiff's attorney, Daniel C. Girard of San Francisco, says the settlement was reached after an earlier judgment in Beaumont, TX, was overturned. The original settlement offered Hyundai owners free oil changes or a discount on a new vehicle.

Girard and co-counsel brought a new suit in Orange County, CA. A final fairness hearing is set for June 16 to announce whether to grant final approval of the settlement that would give Hyundai (and Kia owners of models with Hyundai engines), varying amounts.

The suit alleges horsepower was overstated by 7% or more on the '01-'02 Santa Fe 2.4L I-4; the '01-02 Sonata 2.4L I-4 and the '97-'98 Sonata 2L I-4, and that horsepower was overstated to a lesser extent on a variety of other models and model years, as well.