US regulators have announced that Hyundai and Kia have agreed to a record settlement of us$100m for overstating the fuel economy of their cars.
The South Korean carmakers were accused of exaggerating the fuel efficiency of 1.2 million vehicles.
The us$100m penalty is the largest ever paid for violation of the Clean Air Act, according to regulators.
“We are pleased to put this behind us,” said Hyundai US chief David Zuchowski, in a statement.
In November 2012, the two carmakers admitted to having overstated the fuel economy of their cars by up to six miles per gallon.
This, in turn, meant that the companies underreported the cars’ greenhouse gas emissions to the US Environmental Protection Agency by around 4.75 million metric tons.
As a result, Hyundai and Kia will be forced to forfeit emissions credits for the difference between the original and the overstated data – worth approximately us$200m.
They have also been made to spend approximately us$50m on measures to prevent future violations, making the total settlement worth us$350m.