(December 24, 2013) LOS ANGELES — Hyundai and Kia have agreed to pay up to nearly $400 million to settle consumer lawsuits related to overstated fuel economy ratings on some 900,000 vehicles sold by the companies in the U.S. market.

The value of Hyundai Motor America's proposed settlement totals about $210 million, while Kia Motors America agreed to pay up to $185 million, according to statements issued by the companies.

The proposed settlements are still subject to court review, which is expected in early 2014, the companies said.

“We are pleased with the proposed settlement,” said W. Gerald Flannery, general counsel of Hyundai Motor America. “It demonstrates the ongoing Hyundai commitment to taking care of its customers.”

At the time of the restatement in 2012, Hyundai provided a lifetime reimbursement program to cover the additional fuel costs associated with the rating change — plus a 15 percent premium in acknowledgment of the inconvenience to customers. Affected owners and lessees are compensated based on their actual mileage and the fuel costs for the region in which they live.

“Customers responded favorably to the original reimbursement program,” added Flannery. “Today’s settlement is designed to provide them with an option, again intended to make customers fully whole for Hyundai’s fuel economy ratings restatement.”

“Kia Motors is a responsible company, and the proposed settlement enhances our goal of making things right for our customers by providing new reimbursement options,” said John Yoon, KMA executive vice president HR.  “Kia Motors is fully committed to taking care of its customers, and today’s settlement adds flexibility by adding lump-sum payment options to the transparent reimbursement program introduced last year.”

The automakers were hit with dozens of class-action lawsuits after the companies disclosed in November 2012 that they had sold some 600,000 Hyundai and 300,000 Kia vehicles to U.S. consumers with overstated fuel economy ratings.

Hyundai and Kia officials apologized for the overstated mileage ratings and blamed flawed internal testing procedures for the errors.

The mpg revisions affected eight Hyundai and five Kia nameplates from the 2011, 2012 and 2013 model years. They included some of the companies' best-selling models such as the Hyundai Elantra and Kia Soul. Most vehicles saw their combined MPG ratings fall by 1 or 2 mpg.

Sources: Kia, Hyundai, The Automotive News