Hyundai To Pay $17.35 Million Fine for Delayed 2009-'12 Hyundai Genesis Recall | Edmunds

Hyundai To Pay $17.35 Million Fine for Delayed 2009-'12 Hyundai Genesis Recall


Just the Facts:
  • Hyundai Motor America said it will pay a $17.35 million civil penalty for delaying a recall of the 2009-'12 Hyundai Genesis.
  • The defect involves corrosion in "critical brake system components that can result in reduced braking effectiveness and increase the risk of a crash," according to NHTSA.
  • While there have been no fatalities relating to this safety defect, six consumers reported collisions, including two reports of injuries, NHTSA said.

WASHINGTON — Hyundai Motor America said it will pay a $17.35 million civil penalty for delaying a recall of the 2009-'12 Hyundai Genesis.

The defect involves corrosion in "critical brake system components that can result in reduced braking effectiveness and increase the risk of a crash," according to the National Highway Traffic Safety Administration.

While there have been no fatalities relating to this safety defect, six consumers reported collisions, including two reports of injuries, NHTSA said. Approximately 43,500 Genesis sedans were recalled.

Hyundai also agreed to make improvements to its processes for identifying, reporting and communicating safety-related defects in a timely manner.

This includes the creation of a U.S. Technical Committee to review and make decisions regarding potential Hyundai recalls.

"In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements and enhancing the ability of the U.S. leadership team to readily respond to regulatory reporting requirements," said David Zuchowski, Hyundai Motor America CEO, in a statement on Thursday.

NHTSA found that Hyundai had been aware in 2012 that brake fluids used in the affected Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle s brake system.

"Rather than issue a recall, Hyundai instructed dealers to change the brake fluid in the affected vehicles without explaining the consequences of failing to change the brake fluid," NHTSA said. "Hyundai also did not inform Genesis owners of the potential safety consequences."

Hyundai issued a recall of the vehicles in October 2013 following a NHTSA investigation.

"To date, the majority of affected Genesis vehicles have been repaired through the recall process," Hyundai said.

Federal law requires automakers to report safety defects to NHTSA within five days.

"Safety is our top priority and all automakers should understand that there is no excuse for failing to report a safety-related defect, as required by law," said U.S. Transportation Secretary Anthony Foxx. "This administration will act aggressively and hold automakers accountable when they put the American public at risk."

Edmunds says: The positive news for consumers is that Hyundai has agreed to comply with NHTSA oversight requirements. So any safety-related defects in the future should be dealt with quickly.

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