False claims about an order winner?

Two Korean car companies are having to compensate owners of vehicles because they claimed better fuel efficiency than was actually achieved.  Both Kia and Hyundai say that the claims were due to procedural errors at their test track in Korea.  But this may well affect long term consumer perceptions of these car makers, as fuel efficiency is seen as one of the main order winners for these manufacturers.   As a result shares in the these two companies fell by about 7%.

The service recovery process is also complex.   Owners are being issued with debit cards that will reimburse them on an ongoing basis for the difference in cost between the claimed fuel usage and actual usage, with an additional 15% compensation as a gesture of goodwill by the manufacturer.  In addition, owners who have sold their cars have to be identified, have their mileage costs calculated, and also be compensated.

Source: BBC News

This entry was posted in Chap 02 Winning Customers, Sector: Manufacturing and tagged , , . Bookmark the permalink.

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