Photo: Hyundai
After a rigorous investigation conduced by the NHTSA, Hyundai has been fined $17.35 million, the maximum penalty for a related series of violations until October 1st, 2013, when the fine was increased to $35 million. The South Korean manufacturer failed to report a potentially perilous defect related to the 2009 - 2012 Hyundai Genesis sedan vehicles.
In our guide to how safety recalls happen, we highlighted that if the automaker discovers a life-threatening fault with one of its models during internal investigations, the company needs to inform the National Highway Traffic Safety Administration about it within 5 days. But that didn't happen...
Roughly 43,500 Hyundai Genesis vehicles have been called in October 2013 to fix a braking system glitch. The brakes were prone to premature corrosion from an incompatible brake fluid. OK, so what's wrong with that? Hyundai recalled the things and fixed 70 percent of them to date. Well, not quite...
The NHTSA investigation found out that Hyundai has issued a technical service bulletin in March 2013, instructing its dealers to replace the corrosive brake fluid in these cars. Moreover, the South Korean carmaker has been informed about the corrosiveness of the brake fluid by its supplier back in 2012.
To sum things up, Hyundai kept their lips shut for a year since the defect was identified by the supplier. That's how the automaker got that $17.35 million fine. According to the consent order attached below, Hyundai will pay the civil penalty to the U.S. Treasury no later than 30 calendar days (September 7th).
In total, Hyundai Motor America has received a whopping 87 consumer complaints with regard to the affected Genesis models. 6 of those complaints report collisions, including 2 incidents that resulted in minor injuries such as headaches, backache and whiplash. The NHTSA's acting administrator David Friedman has declared that "Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects."
Roughly 43,500 Hyundai Genesis vehicles have been called in October 2013 to fix a braking system glitch. The brakes were prone to premature corrosion from an incompatible brake fluid. OK, so what's wrong with that? Hyundai recalled the things and fixed 70 percent of them to date. Well, not quite...
The NHTSA investigation found out that Hyundai has issued a technical service bulletin in March 2013, instructing its dealers to replace the corrosive brake fluid in these cars. Moreover, the South Korean carmaker has been informed about the corrosiveness of the brake fluid by its supplier back in 2012.
To sum things up, Hyundai kept their lips shut for a year since the defect was identified by the supplier. That's how the automaker got that $17.35 million fine. According to the consent order attached below, Hyundai will pay the civil penalty to the U.S. Treasury no later than 30 calendar days (September 7th).
In total, Hyundai Motor America has received a whopping 87 consumer complaints with regard to the affected Genesis models. 6 of those complaints report collisions, including 2 incidents that resulted in minor injuries such as headaches, backache and whiplash. The NHTSA's acting administrator David Friedman has declared that "Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects."
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