REFILE-Kia Motors earmarks $187 mln in costs on false mileage claims - exec

Thu Jan 24, 2013 9:57pm EST

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SEOUL Jan 25 (Reuters) - Kia Motors has set aside provisions of about 200 billion Korean won ($187.13 million) to compensate drivers in North America for its overstated fuel-economy claims, Joo Woo-jeong, a director at the automaker, said on Friday.

Hyundai Motor and its affiliate Kia Motors conceded early November that they overstated the fuel economy on more than 1 million recently sold vehicles in the United States and Canada, and agreed to compensate owners for the additional fuel costs.

Hyundai said on Thursday it has earmarked 240 billion won to cover the compensation costs.

Hyundai and Kia posted disappointing results for the December quarter, hit by the stronger local currency and costs to compensate drivers for false mileage claims, sending their shares tumbling on Thursday and Friday. ($1 = 1068.7500 Korean won) (Reporting by Hyunjoo Jin; Editing by Shri Navaratnam)