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US: Hyundai fined by the NHTSA with $17.35 million

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US: Hyundai fined by the NHTSA with $17.35 million

According to a report from the National Highway Traffic Safety Administration, the safety regulator has moved to impose a $17.35 million fine to South Korea’s Hyundai Motor.

The automaker has been sanctioned by the NHTSA because of its failure to report in a timely fashion an issue with the braking system of the Hyundai Genesis sedans from model years 2009 to 2012. The company delayed the recall for a defective braking system that could be corroded in around 43,500 cars.

“Rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences of failing to change the brake fluid,” NHTSA said in a statement. “Hyundai also did not inform Genesis owners of the potential safety consequences. Hyundai finally issued a recall of the affected vehicles in October 2013 as a result of a NHTSA investigation.”

The NHTSA added the late recall did not lead to any road fatalities, but reports involve six crashes and two injuries. US lawmakers and safety regulators are particularly susceptible to impose swift actions against the automakers found to jeopardize safety by reporting defects late. The move comes after the NHTSA fined GM the maximum amount allowed – $35 million – after it was found the company delayed by at least a decade the recall of a defective ignition switch in 2.6 million cars.

Via Reuters

by Aurel Niculescu (my Google+) - Friday, August 8th, 2014 - filed under Hyundai, Industry, News. Image credit: .
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