In this news, we discuss the Hyundai, Kia agree to $210 million U.S. auto safety civil penalty.
WASHINGTON (Reuters) – U.S. units of Hyundai Motor Co and Kia Motors Corp on Friday agreed to a record-breaking civil penalty of $ 210 million after U.S. auto safety regulators unexpectedly recalled 1.6 million engines for risk of fire.
The U.S. National Highway Traffic Safety Administration (NHTSA) said the two Korean affiliate automakers agreed to consent to the orders after the agency said it incorrectly reported certain information to NHTSA regarding the recalls.
Hyundai has agreed to face a total civil penalty of $ 140 million, including an upfront payment of $ 54 million, an obligation to spend $ 40 million on safety performance measures and a penalty additional deferral of $ 46 million if it does not meet requirements.
Kia’s civil penalty stands at $ 70 million, including an upfront payment of $ 27 million, an obligation to spend $ 16 million on specified safety measures and a potential deferred penalty of $ 27 million .
The regulations are separate from the ongoing NHTSA investigations into non-crash fires in certain Hyundai and Kia vehicles, some of which have the engines recalled.
Reporting by David Shepardson; Edited by Chizu Nomiyama
Original © Thomson Reuters