Hyundai, Kia Paying Up to $395 Million to Settle Suit

Hyundai Motor Co. and Kia Motors Corp., affiliated South Korean automakers, agreed to spend as much as $395 million to settle lawsuits brought by customers claiming the companies overstated fuel-economy ratings.

Hyundai’s U.S. unit said in a statement yesterday that it will make payments totaling as much as $210 million to people who bought 2011 to 2013 model-year vehicles affected by the ratings. Customers have the choice of a lump-sum payment from Seoul-based Hyundai or to remain in a fuel-reimbursement program for as long as they own their vehicle. Kia Motors said in a separate statement that its payments to owners of about 300,000 vehicles will total as much as $185 million.