Hyundai Fined for Not Reporting Defect in a Timely Manner

Hyundai Fined for Not Reporting Defect in a Timely Manner
Image: Hyundai
August 11, 2014

Hyundai will pay a $17.35 million fine for failing to notify the National Highway Traffic Safety Administration (NHTSA) about a brake defect within a timely manner.

Hyundai knew that in 2012 that brake fluids used in the model year 2009-2012 Hyundai Genesis did not sufficiently inhibit corrosion in key components of the vehicle's brake system. Hyundai finally issued a recall in October 2013 after a NHTSA investigation.

Under federal law, Hyundai is required to inform NHTSA of the defect within five days.

According to an NHTSA statement, Hyundai had instructed dealers to change the brake fluid in affected vehicles without explaining the consequences of failing to do so Hyundai also did not inform Genesis owners of the potential safety consequences.

While there have been no fatalities related to this safety defect, six owners reported collisions, including two reports of injuries. As of January 14, 2014, Hyundai had received 87 complaints with regard to Genesis vehicles, most of which suggest increased difficulty in braking.

As part of the consent order, Hyundai agrees 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-specific safety recalls. Hyundai will ultimately be responsible for responding to safety concerns in a timely manner based on the technical committee's recommendations.