According to an article published by the National Trial Lawyers, the National Highway Traffic Safety Administration (NHTSA) has announced that Hyundai will pay $17.35 million in civil penalties and comply with NHTSA oversight requirements for failing to report a safety-related defect in one of its car models.
The defect in question affects the 2009-2012 Hyundai Genesis car model and its brake system. The NHTSA has reported that the critical brake system components may corrode, leading to reduced effectiveness of brakes and an increase in the risk of a car crash.
“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,” U.S. Transportation Secretary Anthony Foxx said in the NHTSA news release. “This Administration will act aggressively and hold automakers accountable when they put the American public at risk.”
NHTSA determined that Hyundai had been aware 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, instead of issuing a recall, instructed car dealers to change the brake fluid in affected vehicles without explaining the consequences of failing to change the brake fluid. Hyundai did not inform Genesis-model owners of the potential safety consequences of not having their brake fluid replaced. It was only after an investigation by the NHTSA that Hyundai finally issued a recall of the affected vehicles.
The NHTSA said in their news release, that there have not been any reported fatalities relating to this safety defect. However six consumers reported collisions, and there were two reports of injuries. As of January 14, 2014, Hyundai had received 87 consumer complaints with regard to Genesis vehicles, most of which suggest increased difficulty in braking.
According to NHTSA Acting Administrator David Friedman, “Federal law requires automakers to report safety-related defects to NHTSA within five days, and neither NHTSA nor the American public will accept anything less. Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects.”
Hyundai has 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-specific safety recalls. Hyundai will ultimately be responsible for responding to safety concerns in a timely manner based on the Technical Committee’s recommendations.
Continue reading