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Hyundai Fined $17.35M For Failing To Issue Brake Recall For More Than A Year

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If we’ve learned anything this year it’s that vehicle recalls are a big deal, and, as a car manufacturer, ignoring signs of a recall will most certainly land you in hot water with U.S. regulators. And so, Hyundai will pay more than $17 million for delaying a recall related to defective brakes.


The National Highway Traffic Safety Administration announced that Hyundai agreed to pay a $17.35 million fine for putting off a recall that affected more than 27,000 cars in 2012, The Associated Press reports.


According to investigators, Hyundai became aware in early 2012 that brake fluids used in the model year 2009 to 2012 Hyundai Genesis did not sufficiently inhibit corrosion in key components of the vehicle’s brake system which could result in reduced braking effectiveness and increase the risk of a crash.


Instead of issuing a recall immediately, the manufacturer asked dealers to change the brake fluid in affected vehicles, but offered no explanation about the consequences that failure to actually repair the issue could cause. Additionally, owners of Genesis vehicles were not notified about the issue, NHTSA reports.


Hyundai finally issued a recall [PDF] of 27,500 Genesis vehicles in October 2013, but only after NHTSA opened an investigation [PDF] into the defect.


NHTSA reports there have been no fatalities related to the defect, but six consumers reported collisions, including two with injuries.


As part of its agreement with NHTSA, Hyundai will make improvements to its process for identifying, reporting and communicating safety-related defects in a timely manner.


Hyundai fined $17.35M for delayed reporting of brake issues [The Associated Press]




by Ashlee Kieler via Consumerist

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