GM To Pay Consumers For Gas Mileage Fraud

luvsmiling, Oct. 30, 2014, 9:47 a.m.

GM Korea will pay each owner of the Cruze compact car W420,000 to compensate them for exaggerated fuel economy claims (US$1=W1,048).   The total compensation will amount to W33 billion. 

This is the second time that a Korean automaker had to compensate owners for false advertising of gas mileage. The last was Hyundai in August for the Santa Fe SUV.

The Ministry of Land, Infrastructure and Transportation on Wednesday said GM Korea voluntarily reported the exaggeration and promised to compensate owners. The ministry said the combined mileage for the 1.8 liter version of the car did not meet the stated 12.4 km per liter but amounted to around 11 km per liter.

Owners of some 800,000 Cruze compacts that were sold since 2008 will be eligible. The payment was calculated based on current gasoline prices, average distance traveled annually (14,527 km) and the average five years Koreans change cars. 

Kwon Seok-chang at the ministry said, "The Cruze was set to undergo a fuel efficiency evaluation this year, but the manufacturer voluntarily reported the exaggerated figures beforehand." 


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