Hyundai is offering to pay more than $85 million to settle a class-action lawsuit that was filed after the Korean automaker overstated the horsepower of Hyundai and Kia cars exported to the U.S. Plaintiffs in the suit are roughly 840,000 consumers who bought 1996 to 2002 model year vehicles. Hyundai has admitted overstating engine power by as much as 10%. Company officials say it was an oversight, that they miscalculated the effect of U.S. anti-pollution devices. The miscalculations affected about 1.3 million cars, of which 400,000 were misstated by more than 4 percent. The company estimates that the average misstatement among all 1.3 million vehicles was 4.6 horsepower. Hyundai originally offered to provide extended warranties and roadside assistance plans to affected consumers. It attempted to downplay the seriousness of the mistakes, saying that customers who buy Hyundai are not primarily interested in horsepower. "As you may know, horsepower is not a major reason for buying Hyundai vehicles," said Finbarr O'Neill, who was President and CEO of Hyundai Motor America Inc. at the time the misstatements were made. What unethical actions are being performed in the case study?
Hyundai is offering to pay more than $85 million to settle a class-action lawsuit that was filed after the Korean automaker overstated the horsepower of Hyundai and Kia cars exported to the U.S. Plaintiffs in the suit are roughly 840,000 consumers who bought 1996 to 2002 model year vehicles. Hyundai has admitted overstating engine power by as much as 10%. Company officials say it was an oversight, that they miscalculated the effect of U.S. anti-pollution devices. The miscalculations affected about 1.3 million cars, of which 400,000 were misstated by more than 4 percent. The company estimates that the average misstatement among all 1.3 million vehicles was 4.6 horsepower.
Hyundai originally offered to provide extended warranties and roadside assistance plans to affected consumers. It attempted to downplay the seriousness of the mistakes, saying that customers who buy Hyundai are not primarily interested in horsepower. "As you may know, horsepower is not a major reason for buying Hyundai vehicles," said Finbarr O'Neill, who was President and CEO of Hyundai Motor America Inc. at the time the misstatements were made.
What unethical actions are being performed in the case study?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
