Hyundai's refusal to acknowledge the brake problem in its Genesis cars and issue a recall for about a year, has attracted a $17.35 million fine.
Hyundai, one of the largest car makers , landed in deep trouble with the federal safety regulators and attracted a huge fine for a single violation. The car maker agreed to pay $17.35 million for waiting too long to recall thousands of Genesis luxury sedans over brake defects.
According to the National Highway Traffic Safety Administration, Hyundai discovered the problem with the Genesis' brakes system in 2012 but issued a recall only in October last year after the government started investigating the matter. The defect, which covered 43,500 Genesis cars manufactured from 2009 to 2012, rose from corrosion in the cars' brake system. It manipulated with the drivers' ability to stop the vehicle, increasing the risk of an accident, NHTSA said Thursday in its official documents, CNN reports.
The federal law takes safety of the consumers seriously and requires car makers to report any defects to NHTSA within five days of discovery. But Hyundai and other car makers concealed the defects in their vehicles for months, which resulted in a stern action.
Earlier this year, Toyota and General Motors were fined by the federal regulators for either delaying the recalls or concealing the safety defects. Toyota agreed to pay $1.2 billion in fines suggested by the Department of Justice to settle a four-year investigation into sudden acceleration of its vehicles. General Motors attracted $35 million in fine for delaying recalls related to highly-publicized ignition switch glitches that were linked to 13 deaths. The car maker could face more fines as it is being investigated by other safety regulators.
Stern actions by the safety agency have conveyed a clear message across the auto industry to prioritize the safety of the consumers before anything else.
"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," the Los Angeles Times quoted Anthony Foxx, secretary of the Transportation Department, which operates the NHTSA, as saying. "This Administration will act aggressively and hold automakers accountable when they put the American public at risk."
In order to prevent further chaos, Hyundai is introducing new organizational and process improvements that will ensure prompt response towards any endangering defects in its vehicles.
