A botched Hyundai Genesis recall for defective brakes because of corroded brake lines resulted in a $17.35 million civil penalty the US Department of Transportation’s National Highway Traffic Safety Administration – aka NHTSA – announced today.
The Korean scofflaw will also accept additional NHTSA oversight requirements as outlined in a Consent Order because of the manufacturer failing to report a safety defect affecting 2009-2012 Hyundai Genesis vehicles. The Genesis safety defect causes corrosion in brake system components, leading to reduced braking effectiveness and increasing the risk of a crash.
NHTSA found 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. (Brake fluid is hygroscopic – editor) Rather than issue a recall, Hyundai told dealers to change the brake fluid in affected vehicles without explaining the consequences of failing to change the brake fluid.
Hyundai also did not inform Genesis owners of the potential safety consequences. Hyundai finally issued a recall of the affected vehicles in October 2013 because of a NHTSA investigation.
While there have been no fatalities relating to this safety defect, six consumers reported collisions, including 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.
“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,” said NHTSA Acting Administrator David Friedman. “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.”
As part of the Consent Order – and a parallel of the Toyota unintended acceleration cover-up – Hyundai 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 US Technical Committee to review and make decisions regarding potential Hyundai-specific safety recalls. Hyundai will ultimately be responsible for responding to safety based on the Technical Committee’s recommendations, NHTSA said.
