Huyndai and Kia improving their financial stability
|   Monday, November 12, 2012
Hyundai and Kia are working to improve upon the financial damage done to them in the in the past in the form of mileage complaints from the automobiles users. They are also working to resolve the issues raised by the government.

There had been lots of concerning issues about the two brands already filed, and it is expected that there are more to be registered. It is being said that the prices of the two cars may reach to $100 million. There are some investors who don't agree with the figures files, rather they are of the view that the downfall may continue for a longer time.


The rating agency in its new report stated that the two brands will have to face the loss, until the affected models are upgraded. Despite of the huge figures the total amount is just 1 percent of the total Korean Auto Industry's earnings.

Both the makers are worki ng on ho w to improve the mileage of the car which was the key issue of both of both the government and the general public. The improves models they have introduced are said to give the mileage of 40mpg. They are trying to meet the standards set by the Environmental Protection Agency. They are also working to resolve the concerned shown by the agency regarding the fuel consumption.

According to the figures shown by the EPA, it is stated that the fuel consumption of the models presented by the two said makers was one to six miles per gallon.
Justifying their point of view the Korean said the fuel consumption figure stated were the mistakes of their own testing procedures. They asserted since it was the mistake on their part they are ready to compensate the affected people.

The compensation may range from 80$ if the car was used 15,000 miles a year. Both the makers were of the view that they will keep compensating until the car is under the use of the first owner. Since the peopl e are in the habit of keeping the cars in their own use for longer time so the compensation may cost the company a lot. The figures may rise to $500 per affected vehicle and if the situation continues the compensation price may rise as high as $200 millions.

Addressing a to media, Hyundai Motor America CEO John Krafcik said that they are not very much concerned about the market rather the cost. He also asserted most of the people may not be interested in going to the compensation as they would prefer not to waste their time for such a small amount of money. However the fines imposed by the EPA and the Federal Trade Commission's payments for violating the advertising rules may be the matter of concerned for the company.

Besides this the legal issues are the matters of concerned as the payments in the form of claims raised by the user will affect the finances of the two auto mobiles makers in the industry.
However the makers are hopeful to bring the complaints to the minimum.
PHOTO GALLERY
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