Kia Motors earmarks $187 mn in costs on false mileage claims: exec
Reuters: Seoul, Jan 25 2013, 10:56 IST
Kia Motors has set aside provisions of about 200 billion Korean won ($187.13 million) to compensate drivers in North America for its overstated fuel-economy claims, said Joo Woo-jeong, a director at the automaker said on Friday.
Hyundai Motor and its affiliate Kia Motors conceded early November that they overstated the fuel economy on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.
Hyundai said on Thursday it has earmarked 240 billion won to cover the compensation costs.
Hyundai and Kia posted disappointing results for the December quarter, hit by the stronger local currency and costs to compensate drivers for false mileage claims, sending their shares tumbling on Thursday and Friday.
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