Hyundai Fuel-Economy Flap Seen as Turned Tables for Honda

For Honda Motor Co. it was a rude moment when Hyundai Motor Co. unfurled a banner at the 2010 Detroit auto show touting the Korean brand as America’s most fuel-efficient. Honda’s U.S. sales chief vowed that Hyundai’s apparent victory would “motivate us even further.”

Now it’s payback time. Just as Honda ramps up sales of a new Accord sedan and prepares a modified Civic small car, Hyundai and its affiliate Kia Motors Corp. are regrouping after admitting to the most extensive overstatement of fuel-economy ratings ever found by the U.S. Environmental Protection Agency.