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Hyundai and Kia Shares dip on overstated mileage claims


Cuprabob
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Was reading about this last week. I can't see the share price being affected for long as Hyundai's sales figures were through the roof in the first quarter.

Hyundai sold 1,072,679 new vehicles worldwide in the first three months of 2012, up 16.7 percent from the same period a year earlier, net income climbed 30.6 percent to US$2.16 billion in the first quarter, while its operating profit jumped 24.9 percent to US$2 billion. Kia, saw its global sales rise 12.6 percent to 636,398 vehicles in the first quarter of 2012. In the same period, Kia's net income rose 26 percent to US$1.1 billion, while the automaker's operating profits jumped 33 percent to US$990 million.

This is what happens when you build quality cars at a competitive price that people would actually want to buy.

Ooops! But the article doesn't say the exact difference between their figures and the actual figures.

This must also apply to the European figures?

The mileage on most vehicle labels will be reduced by one to two miles per gallon. The largest adjustment will be for the Kia Soul, which was off by as much as 6 mpg on the highway and 3 mpg in the city. The changes will reduce the fuel economy of the entire 2012 Hyundai/Kia fleet from 27 US miles per gallon to 26 US mpg, Hyundai said.

Only applies to US and Canadian sales, although I doubt many buyers purchased the cars for the fuel figures.

Customers will receive a personalized debit card that will reimburse them for their difference in the EPA combined fuel economy rating, based on the fuel price in the customer’s area and their own actual miles driven, Hyundai said. Hyundai will add an extra 15 percent to the amount in acknowledgement of its error and current owners will be able to refresh the debit card for as long as they own the vehicle.
Edited by Andy_Bangle
typo
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I suspect some of the German brands <yes, you, BMW, especially> will be a little worried about this

I doubt it, the (US) EPA allows car makers to submit their own mileage estimates, which it certifies, and post them on the window stickers that customers see whereas European fuel consumption figures come from bench-tested engines. This is why you'll struggle to match the Official Figures (with a 320ed etc) since the EU has decreed that new models require a particulate filter, which requires a considerable amount of diesel to regenerate and needing to drive the car with higher revs to do it. This is not included in the EU consumption lab tests on the basis of which cars are taxed.

The EU test for all cars is carried out a laboratory and done at 20-30 °C starting with the urban cycle and an engine not used for 2 hours, the cycle used is very specific series of revs changes etc. They're are widely known as not being very reflective of real use environments, but they are the only figures a car manufacturer can publish. The official tests are also done without any ancillaries like Air con, heaters, audio etc on or people in the car. Also the DPF is another thing in the exhaust flow restricting the Engine so less mpg again.

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Surely it can't be that hard to put together a test that gives you a more accurate reflection of real world driving, I know what car started doing something along those lines but it was rather lacking in information when I looked a few months back.

That was the theory behind the Euro tests, to standardise the tests on something that reflected the real world so that they numbers would be meaningful and comparable.

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They are reviewing the current way they calculate MPG figures in Europe. However its expected that it will take until 2015 to decide on what the new test will be and then 2018 until its mandatory or there abouts.

Talk about aggressive timescales... :coffee:

This is the EU you are talking about. I think that's quite fast for them. :rolleyes:

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I suspect some of the German brands <yes, you, BMW, especially> will be a little worried about this - does anyone get anywhere near the claimed figures out of their 'Efficient Dynamics' diesels? - I know I didn't when I had a 320ED demonstrator.

Apparantly it's possible to get over 100mpg from a 116d which has claimed figures in the 70's; bet they pushed it some of the way.

BMW 116d Beats 100mpg on Futurecar Run | Motoring News | Honest John

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Yup just found it.

http://www.f30post.com/forums/showthread.php?t=664939

As the post says BMW don't thing the figures they got are correct but can't appeal or get a retest until next year. So it looks like the 328i is no better than the 335i, oops. Also interesting to see how much lower the figures are compared to the sky high results they get over here.

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Also interesting to see how much lower the figures are compared to the sky high results they get over here.

Could be a different test cycle, but don't forget that a US gallon is different to an Imperial gallon. Can't remember which way round it is, though, whether that will increase or decrease the mpg figure.

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Could be a different test cycle, but don't forget that a US gallon is different to an Imperial gallon. Can't remember which way round it is, though, whether that will increase or decrease the mpg figure.

Oh I know its a different gallon and cycle but it would be interesting to compare as the figures do look much lower than those in the UK maybe its a better real world test than we get in the EU.

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It's 1:1.20 1 US mpg = 1.20 imperial mpg. Most of the press releases I post up are always quoted in US mpg so I always have to convert 'em.

Pretty sure it's the opposite way round. 1 US gallon is about 3.7 litres whereas imperial gallon is 4.54 so 1 US gallon = 0.8 imperial gallons so American mpg figures will be lower than our figures.

Im guessing you knew that and It was a typo so don't shout at me. :)

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