Hyundai Pays Up for Delaying Recall

By | August 08, 2014
Hyundai will pay over $17.3 million for failing to recall vehicles in a timely manner back in 2013. The recall under scrutiny involved 43,500 model year 2009-2012 Genesis luxury cars. The braking systems in these models may experience corrosion, which could reduce brake performance. Six crashes and two injuries have been attributed to this problem, and as of January 14, Hyundai received 87 consumer complaints regarding Genesis vehicles. The government claims Hyundai knew about the problem since 2012. At this time, the company found brake fluid did not prevent corrosion of the brake system. According to the National Highway Traffic Safety Administration, Hyundai opted not to recall the vehicles but instead to instruct dealers to change the brake fluid in Genesis cars. However, the company didn't explain to dealers the consequences of failing to take this action. Hyundai later issued a recall in October 2013 after a federal investigation was initiated. NHTSA Acting Administrator David Friedman said, "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 issued its own response related to the delayed recall incident. “In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements, and enhancing the ability of the U.S. leadership team to readily respond to regulatory reporting requirements,” said David Zuchowski, president and CEO of Hyundai Motor America. Source: NHTSA, Hyundai, The Detroit News