26 states object to Honda hybrid mileage settlement
Washington -- More than half of the nation's state attorneys general are objecting to a deal to settle a 2007 class action lawsuit against Honda Motor Co. over claims of inflated mileage for a hybrid vehicle.
In March 2007, John True, an Ontario, Calif., jazz pianist, filed suit after he bought a Honda Civic hybrid but couldn't get the gas-electric hybrid's advertised mileage: 49 miles per gallon in the city, 51 miles per gallon on the highway.
After 6,000 miles of driving, True said he averaged just 32 miles per gallon in mixed city/highway driving. True's frustration with the actual mileage of his hybrid as compared to the advertised mileage echoes that of other owners and reflected the findings of some independent tests, including one by Consumer Reports.
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Honda and lawyers for True have reached a proposed settlement, but 26 state attorney generals, including Michigan Attorney General Mike Cox, objected this week in U.S. District Court in Riverside, Calif.
To settle the case, Honda would send nearly 160,000 current and former Civic Hybrid owners a DVD containing tips on improving fuel economy.
Owners who trade in their Honda Civic Hybrid for certain Honda or Acura vehicles could get up to $1,000 rebate on some vehicles or $100 in cash if they had made a complaint previously. Others who no longer owned their hybrid would get a $500 coupon.
But the attorneys general argue the rebate excludes the vehicles that members of the class "would most likely choose to buy." The excluded list includes the Honda Fit, Honda Insight, Honda Civic Hybrid and Honda CRZ.
The settlement covers 158,639 people who owned or leased a 2003 through 2008 model Honda Civic Hybrid.
Honda estimates it is likely that only 580 consumers covered by the settlement could get the $100 cash payment.
The attorneys general call the settlement "meager" and note that attorneys for the drivers will get $2.95 million in legal fees and the main plaintiffs, including True, will split $22,500.
The attorneys general said the settlement was "not fair, adequate or reasonable." They argued the settlement doesn't provide enough benefit to consumers, gives the lawyers too much money and doesn't do enough to prevent Honda from making the same claims in the future.
"The coupons offered to consumers are of limited value: They are worth only a fraction of the price of the original car, are valid only on select cars and have other limitations," the attorneys general said in a court filing Monday. "All of these limitations call into serious question the fundamental fairness, adequacy and reasonableness of the settlement."
A Honda spokesman didn't immediately return calls seeking comment.
U.S. District Judge Virginia A. Phillips granted tentative approval to the settlement in August, but hasn't addressed the state objections yet.
The lawsuit claimed American Honda Motor Co. misled consumers in its advertisements and on its Web site. One Honda magazine ad claimed owners could get up to 650 miles on a single tank of gas, while Honda's Web site features a fuel savings calculator that assumes hybrid Civic drivers will average 51 miles per gallon.
Honda will agree to drop one claim in one advertisement for two years, saying that "mileage will vary," not "mileage may vary."
Honda and others note that EPA tests, which hadn't been revised in two decades, overstated average fuel economy for all vehicles. Last year, the EPA said it was revising its testing procedures to better reflect real-world driving conditions, beginning with the 2008 model year.
Consumer Reports found in October 2005 that the Honda Civic hybrid averaged just 26 miles per gallon in city driving -- 46 percent below the EPA estimate. Other hybrids also averaged below estimates.
New EPA tests to better reflect real-world driving conditions were unveiled in December 2006. They dropped city fuel economy for all vehicles by an average of 12 percent and 8 percent for highways.
Other objecting attorneys general include California, Tennessee, Texas, Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maine, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Vermont and West Virginia.
Source: 26 states object to Honda hybrid mileage settlement
In March 2007, John True, an Ontario, Calif., jazz pianist, filed suit after he bought a Honda Civic hybrid but couldn't get the gas-electric hybrid's advertised mileage: 49 miles per gallon in the city, 51 miles per gallon on the highway.
After 6,000 miles of driving, True said he averaged just 32 miles per gallon in mixed city/highway driving. True's frustration with the actual mileage of his hybrid as compared to the advertised mileage echoes that of other owners and reflected the findings of some independent tests, including one by Consumer Reports.
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Honda and lawyers for True have reached a proposed settlement, but 26 state attorney generals, including Michigan Attorney General Mike Cox, objected this week in U.S. District Court in Riverside, Calif.
To settle the case, Honda would send nearly 160,000 current and former Civic Hybrid owners a DVD containing tips on improving fuel economy.
Owners who trade in their Honda Civic Hybrid for certain Honda or Acura vehicles could get up to $1,000 rebate on some vehicles or $100 in cash if they had made a complaint previously. Others who no longer owned their hybrid would get a $500 coupon.
But the attorneys general argue the rebate excludes the vehicles that members of the class "would most likely choose to buy." The excluded list includes the Honda Fit, Honda Insight, Honda Civic Hybrid and Honda CRZ.
The settlement covers 158,639 people who owned or leased a 2003 through 2008 model Honda Civic Hybrid.
Honda estimates it is likely that only 580 consumers covered by the settlement could get the $100 cash payment.
The attorneys general call the settlement "meager" and note that attorneys for the drivers will get $2.95 million in legal fees and the main plaintiffs, including True, will split $22,500.
The attorneys general said the settlement was "not fair, adequate or reasonable." They argued the settlement doesn't provide enough benefit to consumers, gives the lawyers too much money and doesn't do enough to prevent Honda from making the same claims in the future.
"The coupons offered to consumers are of limited value: They are worth only a fraction of the price of the original car, are valid only on select cars and have other limitations," the attorneys general said in a court filing Monday. "All of these limitations call into serious question the fundamental fairness, adequacy and reasonableness of the settlement."
A Honda spokesman didn't immediately return calls seeking comment.
U.S. District Judge Virginia A. Phillips granted tentative approval to the settlement in August, but hasn't addressed the state objections yet.
The lawsuit claimed American Honda Motor Co. misled consumers in its advertisements and on its Web site. One Honda magazine ad claimed owners could get up to 650 miles on a single tank of gas, while Honda's Web site features a fuel savings calculator that assumes hybrid Civic drivers will average 51 miles per gallon.
Honda will agree to drop one claim in one advertisement for two years, saying that "mileage will vary," not "mileage may vary."
Honda and others note that EPA tests, which hadn't been revised in two decades, overstated average fuel economy for all vehicles. Last year, the EPA said it was revising its testing procedures to better reflect real-world driving conditions, beginning with the 2008 model year.
Consumer Reports found in October 2005 that the Honda Civic hybrid averaged just 26 miles per gallon in city driving -- 46 percent below the EPA estimate. Other hybrids also averaged below estimates.
New EPA tests to better reflect real-world driving conditions were unveiled in December 2006. They dropped city fuel economy for all vehicles by an average of 12 percent and 8 percent for highways.
Other objecting attorneys general include California, Tennessee, Texas, Alabama, Alaska, Arizona, Colorado, Florida, Georgia, Idaho, Illinois, Iowa, Maine, Mississippi, Nevada, New Hampshire, New Jersey, New Mexico, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Vermont and West Virginia.
Source: 26 states object to Honda hybrid mileage settlement
