Hyundai introduced the Veloster Turbo Coupe at the 2012 North American International Auto Show at the Cobo Center in Detroit, January 9, 2012. UPI/Mark Cowan | License Photo

WASHINGTON, Dec. 24 (UPI) -- Hyundai Motor America and Kia Motors America said Monday they will offer owners lump-sum payments to make up for inflated fuel economy claims.

The class-action lawsuit settlement will provide average payments of $353 for Hyundai owners and $667 for Kia owners, the Chicago Tribune reported.


Owners also have the option of using 200 percent of the cash payment toward a new car purchase or a 150 percent credit for service or repairs, the newspaper said.

"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," John Yoon, an executive vice president at the automaker, said.

The settlement, which covers about 600,000 Hyundai vehicles and 300,000 Kias, could cost the two companies a combined $400 million.

The Environmental Protection agency said last month the automakers inflated their mileage ratings by 35 percent.