Hyundai and Kia Reach $395 Million Deal to Resolve MPG Lawsuits

On December 23, 2013, Hyundai Motor Corp. and Kia Motors America, Inc. announced that they had reached a $395 million deal to settle a class action lawsuit with current and former owners of vehicles for which gas mileage ratings were overstated.  In 2012, the automakers were caught and subsequently admitted to overstating the gas mileage ratings for many of their 2011, 2012, and 2013 model year vehicles.

The settlement reportedly impacts about 600,000 of Hyundai’s 2011-2013 models and 300,000 of Kia’s 2011-2013 models in the United States.  The exact figures of the settlement reportedly depend on how customers elect to participate in the settlement– whether they chose the lifetime reimbursement program or the lump sum option.  

The lifetime reimbursement program was created by the automakers in 2012 to cover additional fuel costs associated with the mpg rate change plus a 15% premium for the inconvenience of customers.  Compensation is based on the actual mileage and fuel costs for the region in which the driver lives and drivers must go to dealerships to have their odometers read.  The recent settlement has created the second lump sum option for owners.  Reportedly, the average lump sum payment for Hyundai owners and lessees will be about $353, while the average lump sum payment for Kia owners and lessees will be about $667.  

A federal judge is expected to review the proposed settlement for approval in early 2014. Assuming approval is granted, notices will be sent to individual class members.  Initial details of the settlement are available at hyundaimpginfo.com or www.kiampginfo.com.


Do you have a Kia or Hyundai motor vehicle that has experienced repeated problems, has been in the shop for repairs, but is still not fixed?  If the vehicle was purchased or repaired in Ohio or Kentucky, then you can call Burdge Law Office on our Toll Free Hotline, 1.888.331.6422, to see if we can help you out of your "lemon" vehicle.

Beth Wells

www.OhioLemonLaw.com

www.KentuckyLemonLaw.com

www.BurdgeLaw.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Chrysler Recalls Vehicles for Risk of Engine Stall or Engine Failure

Chrysler Recalls Vehicles for Risk of Engine Stall or Engine Failure

Chrysler Group LLC has recalled over 500 model year 2013 Dodge Avengers and

Chrysler200s, and model year 2014 Jeep Compasses and Jeep Patriots, all equipped with 2.4L engines.  According to Chrysler Group LLC, abrasive debris in the balance shaft bearings of these vehicles may cause a loss of engine pressure, which can cause the vehicle’s engine to stall or fail.  Chrysler admits that, if the engine stalls while driving, this may increase the risk of an accident.  

To see the four (4) documents associated with this recall, click here and scroll down to the accessible PDF files.

According to the National Highway Traffic and Safety Administration ("NHTSA"), Chrysler Group LLC will notify vehicle owners directly, and its authorized dealers will replace the engine balance shaft module in the affected vehicles free of charge.  Owners may also contact Chrysler Group LLC direct at 1-800-247-9753.  

The recall is expected to begin in December 2013 and will be recall campaign number N52.  The recall is expected to effect 522 vehicles with the following build dates: 2013 Dodge Avenger (March 15, 2013-April 12, 2013), 2013 Chrysler 200 (March 23, 2013-April 10, 2013), 2014 Jeep Compass (March 20, 2013-April 10, 2013), or 2014 Jeep Patriot (March 23, 2013-April 10, 2013). 

Do you have a 2013 Dodge Avenger, 2013 Chrysler 200, 2014 Jeep Compass, or 2014 Jeep Patriot with a 2.4L engine that experienced an engine shutdown, has been in the shop for repairs, but is still not fixed?  If the vehicle was purchased or repaired in Ohio or Kentucky, then you can call Burdge Law Office on our Toll Free Hotline, 1.888.331.6422, to see if we can help you out of your "lemon" vehicle.

Beth Wells

www.OhioLemonLaw.com

www.KentuckyLemonLaw.com

www.BurdgeLaw.com

Helping Consumers Get Rid of Lemons, 9 Years Running

Will Your Online Review Spark A Lawsuit?

In the age of social media, a car dealer's online reviews are more important than ever before.  Many car dealers combat negative online reviews by hiring an online reputation management company.  A few have decided to go a different route-- sue the unsuspecting consumers posting the negative reviews. 

For instance, Chicago Motor Cars sued consumer David Bates in Federal Court after he posted negative comments and videos online about his experience purchasing a Mercedes SL600 from Chicago Motor Cars.  According to Bates' website, www.chicagomotorcarssucks.com, the dealership misrepresented the vehicle him.  What did he do?  He posted comments and videos online allegedly to warn other consumers of his experience at Chicago Motor Cars.  Bates stuck out the fight in Federal Court and won his right to continue posting information online regarding his experience with Chicago Motor Cars and regarding judgments and arbitration awards that other consumers have obtained against Chicago Motor Cars.  Needless to say, the strong arm attack by Chicago Motor Cars on a consumer certainly backfired for them.

However, most consumers do not have the finances to fund a battle against a car dealership just to be able to maintain their First Amendment rights to free speech.  As a result, many consumers would likely be frightened by a lawsuit and quickly remove their negative online posts to avoid further litigation.  And, I would guess that this is likely the goal of a car dealership who resorts to filing lawsuits against its disgruntled consumers. 

So what constitutes free speech under the First Amendment when it comes to online reviews?  And where do we draw the line between "chilling" free speech, and protecting a business from unsubstantiated statements by a disgruntled consumer?  The answers are not clear, but with the rising importance of online reviews to businesses like car dealers, these issues are very likely to be a hot issue in Courts throughout the country in the near future.

Beth Wells

www.BurdgeLaw.com

www.CarSalesFraud.com

www.OhioLemonLaw.com

www.KentuckyLemonLaw.com

Helping Consumers Get Rid of Lemons, 9 Years Running