Hyundai, Kia agree to $210mn US auto safety civil penalty

29 November, 2020 12:00 AM printer

WASHINGTON: Hyundai Motor and Kia Motors’ US units on Friday agreed to a record US$210 million civil penalty after US auto safety regulators said they failed to recall 1.6 million vehicles for engine issues in a timely fashion.

The US National Highway Traffic Safety Administration (NHTSA) said the two affiliated Korean automakers agreed to consent orders after it said they had inaccurately reported some information to the agency regarding the recalls, report agencies.

Hyundai agreed to a total civil penalty of US$140 million, including an upfront payment of US$54 million, an obligation to spend US$40 million on safety performance measures, and an additional US$46 million deferred penalty if it does not meet requirements. Kia’s civil penalty totals US$70 million, including an upfront payment of US$27 million, requirements to spend US$16 million on specified safety measures and a potential US$27 million deferred penalty.