HYUNDAI, KIA AGREE TO PAY $210M U.S. AUTO SAFETY PENALTY

Hyundai Motor Co and Kia Motors’ US units agreed to a record $210 million civil penalty after US auto safety regulators said they failed to recall 1.6 million vehicles for engine issues in a timely fashion, David Shepardson reported for Reuters.

The US National Highway Traffic Safety Administration (NHTSA) said the two affiliated Korean automakers agreed to consent orders after it said they had inaccurately reported some information to the agency regarding the recalls.

Hyundai agreed to a total civil penalty of $140 million, including an upfront payment of $54 million, an obligation to spend $40 million on safety performance measures, and an additional $46 million deferred penalty if it does not meet requirements. Kia’s civil penalty totals $70 million, including an upfront payment of $27 million, requirements to spend $16 million on specified safety measures and a potential $27 million deferred penalty.

“It’s critical that manufacturers appropriately recognize the urgency of their safety recall responsibilities and provide timely and candid information to the agency about all safety issues,” said NHTSA Deputy Administrator James Owens. The settlement covers recalls in 2015 and 2017 for manufacturing issues that could lead to bearing wear and engine failure. As part of the settlement, Hyundai is investing $40 million to build a safety field test and inspection laboratory in the United States and implementing new IT systems to better analyze safety data.