Car-maker Hyundai would pay a $17-million fine for failing to recall 43,500 Genesis sedans promptly, from its 2009-2012 models, having a defective brake system.
The problem was that the brake fluid did not sufficiently prevent corrosion and that increased the risk of accidents. Hyundai did know about the problem and issued a “Technical Service Bulletin” to its dealers to change the brake fluid in March 2013 if any customers complained about the brake system.
But it did not tell the dealers why they should change the brake fluid; neither told the customers till October that there was a problem with the brake system and only after the National Highway Traffic Safety Administration (NHTSA) opened an investigation that it recalled the faulty cars.
Although there was no fatalities reported, but it did receive reports of some crashes that led to injuries.
Hyundai CEO David Zuchowski said in a statement that the company would ensure that such problems does not recur.
Authorities form the NHTSA said ensuring “safety is the top priority” and automakers should bear in mind that there can be no excuse for failing to report a safety-related defect, as mandated by law.
Earlier, General Motors was fined $35 million by the NHTSA after the company failed to recall its car having a defective ignition switch, which caused 13 deaths. Toyota Motor Corp. also paid a $1.2-billion Department of Justice fine after it was reported that some of its cars suddenly accelerated.
