Hyundai agrees to pay US$17m fine
Print Edition
HYUNDAI has agreed to pay a US$17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars, the US National Highway Traffic Safety Administration said.
The defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash, NHTSA said. Hyundai was aware in 2012 that brake fluids used in the model year 2009-2012 Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle’s brake system, the agency said,
But rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences that failure to take that action might have, NHTSA said. Hyundai also did not inform Genesis owners of the potential safety consequences, the agency said.
Hyundai recalled 27,500 of the cars in October 2012 just hours before the government opened an investigation. About 70 percent of the affected Genesis cars have been repaired so far, the safety administration said.
In May, NHTSA slapped General Motors with a record US$35 million fine for taking more than a decade to disclose an ignition-switch defect in millions of cars that has been linked to at least 13 deaths.
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