[THE INVESTOR] Hyundai Motor and Kia Motors have agreed to pay $41.2 million to settle investigations over inflated fuel economy ratings in US states.
 
“We have faithfully taken all the follow-up measures related to the fuel economy ratings,” Hyundai said on Friday. 

In return for the settlement, the group representing 33 states -- which claimed the automakers misrepresented fuel economy in advertising -- decided not to file lawsuits against the automakers. 

The deal is the latest in the ongoing fallout from the automakers overstating fuel economy ratings.

In 2012, the US Environmental Protection Agency discovered that the companies overstated mileage claims for a total of 1.2 million units. Vehicles included the Hyundai Accent, Elantra, Veloster and Santa Fe and the Kia Rio and Soul.

Following the discovery, Hyundai and Kia reduced the average fuel economy from 27 miles to 26 miles per gallon for their 2011-2013 models sold in the US. The companies also paid a $100 million penalty to the EPA in the end of 2014.

This time, the money, to be paid in December, will settle consumer-protection claims and cover government investigation costs. 

By Shin ji-hye /The Korea Herald (shinjh@heraldcorp.com)