Hyundai Paying $17.35 Million Civil Penalty in Brake Corrosion Case

The automaker will comply with several requirements spelled out in a consent order, including maintaining accurate and current recall information for consumers on its website.

Failing to report a safety defect to NHTSA within five working days, as the National Traffic and Motor Vehicle Safety Act requires, is costing Hyundai dearly. NHTSA announced Aug. 7 that the automaker will pay a $17.35 million civil penalty and comply with NHTSA oversight requirements outlined in a Consent Order because it did not report in a timely manner a safety-related defect affecting 2009-2012 Hyundai Genesis vehicles. The defect involved corrosion in brake system components that can result in reduced braking effectiveness and increase the risk of a crash.

NHTSA determined Hyundai was aware during 2012 that brake fluids in those vehicles did not sufficiently inhibit corrosion. Rather than issuing a recall, the company “instructed dealers to change the brake fluid in affected vehicles without explaining the consequences of failing to change the brake fluid,” according to NHTSA’s news release. “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. While there have been no fatalities relating to this safety defect, six consumers reported collisions, including two reports of injuries. As of January 14, 2014, Hyundai had received 87 consumer complaints with regard to Genesis vehicles, most of which suggest increased difficulty in braking,” the release states.

The consent order, available via a link at this NHTSA web page, states that Hyundai has established a U.S. Technical Committee to review and decide upon safety recalls and service campaigns and will give that committee all of the information it needs to consider when deciding whether a safety defect exists. Sevearl other requirements are listed, including that Hyundai will maintain accurate and current recall information for consumers on its website; the information will be written in plain English and easily found when searching the Internet. The company has agreed to work collaboratively with NHTSA “to explore creative ways to increase recall response rates.”

"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," said U.S. Transportation Secretary Anthony Foxx. "This administration will act aggressively and hold automakers accountable when they put the American public at risk."

Download Center

HTML - No Current Item Deck
  • Safety Management Software - Free Demo

    IndustrySafe Safety Software’s comprehensive suite of modules help organizations to record and manage incidents, inspections, hazards, behavior based safety observations, and much more. Improve safety with an easy to use tool for tracking, notifying and reporting on key safety data.

  • Create Flexible Safety Dashboards

    IndustrySafe’s Dashboard Module allows organizations allows you to easily create and view safety KPIs to help you make informed business decisions. Our best of breed default indicators can also save you valuable time and effort in monitoring safety metrics.

  • Schedule and Record Observations

    IndustrySafe's mobile app allows managers, supervisors, and employees to conduct observations on employees involved in safety critical behavior on the go, with or without an internet connection. IndustrySafe’s pre-built BBS checklists may be used as is, or can be customized to better suit the needs of your organization.

  • The 4 Stages of an Incident Investigation

    So, your workplace has just experienced an incident resulting in the injury or illness of a worker. Now what? OSHA recommends that you conduct investigations of workplace incidents using a four-step system.

  • Why Is Near Miss Reporting Important?

    A near miss is an accident that's waiting to happen. Learn how to investigate these close calls and prevent more serious incidents from occurring in the future.

  • Industry Safe
comments powered by Disqus

Free Whitepaper

Stand Your Ground: A Guide to Slip Resistance in Industrial Safety Footwear

This white paper helps to clarify this complexity, so you can better navigate the standards and better ensure the safety of your employees.

Download Now →

OH&S Digital Edition

  • OHS Magazine Digital Edition - October 2019

    October 2019

    Featuring:

    • WINTER HAZARDS
      Preparing for Old Man Winter's Arrival
    • CONSTRUCTION
      Staying Safe in the Trenches
    • INDUSTRIAL HYGIENE
      Setting a Higher Standard: The Limitations of Regulatory Limits
    • ELECTRICAL SAFETY
      Five Important Things to Know About Arc Flash PPE Programs
    View This Issue