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Hyundai Fined $17-Million for Recall Delays

Lucrecia Guerra2 years ago

Hyundai has been ordered to pay a $17 million federal fine due to delays in the recall of Genesis vehicles affected by a brake defect

About the Hyundai Genesis Recall 

On Thursday, the National Highway Traffic Safety Administration (NHTSA) announced that it would be fining Hyundai $17 million in connection with recall delays affecting 43,500 2009-2012 Genesis vehicles.

According the Los Angeles Times, a defect in the vehicles brake systems could lead to brake line corrosion, resulting in an incresed risk of crash. The secretary of Transportation Department stated that safety NHTSA’s top priority and that all automaker are required by law to report safety problems in a timely manner.

NHTSA’s investigation revealed that Hyundai knew that brake fluids in the Genesis models did not meet necessary safety regulations, but failed to recall the vehicles. Instead, the automaker issued a “Technical Service Bulletin” to dealers – no notification was sent to Genesis owners.

Six collisions and two injuries have been linked to the defect.

Other Fines Issued this Year

The Hyundai fine is the latest in a series of citations levied against automakers in 2014.

Earlier this year, the Department of Justice ordered that Toyota Motor Corp. pay $1.2 billion to settle a four-year criminal investigation concerning defective accelerators.

More recently, General Motors was fined $35 million for delays in the recall of 2.6 million vehicles affected by defective ignition switches. At least 13 deaths have been linked to that recall.

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