A tale of two fines by the federal government.
EPA Administrator Gina McCarthy just tweeted out this brag on how much the government was able to fine and collect from Hyundia/Kia over allegations the South Korean automaker provided erroneous emissions data to the public:
The WSJ reports that the actual fine, however, amounts to $300 million once the emissions credits are accounted for:
Korean auto makers Hyundai Motor Co. and Kia Motors Corp. agreed to pay a combined penalty of $300 million for overstating fuel-economy claims, the largest such punishment ever, in a settlement that could create a pricey precedent for other car companies.
Hyundai and Kia, affiliates of Hyundai Motor Group, will pay a combined $100 million in civil fines and forfeit regulatory credits valued at $200 million to settle a two-year long probe by the U.S. Environmental Protection Agency and the Justice Department, the agencies said.
That’s a big fine. But how does it compare to what the government was able to collect from General Motors for GM’s delay in reporting a faulty ignition switch issue that’s been linked to “at least 13 deaths“?
The “maximum” fine for GM was $35 million, but Hyundai and Kia were just fined $300 million?
How in the world do the government justify this discrepancy?