The National Highway Traffic Safety Administration said Hyundai has agreed to pay a $17.35-million f...

1. NHTSA fines Hyundai $17.35M for slow reporting of brake
corrosion
The National Highway Traffic Safety Administration said Hyundai has agreed to pay a $17.35-million
fine because the company failed to report a brake defect issue in a timely manner.
Potential corrosion in the brake systems of 2009-12 model year Hyundai Genesis sedans can cause
reduced braking effectiveness and increase risk of a crash.
“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,” U.S. Transportation Secretary
Anthony Foxx said in a statement Thursday. “This administration will act aggressively and
hold automakers accountable when they put the American public at risk.”
According to the agency, Hyundai was aware in 2012 that brake fluids in the Genesis did not
sufficiently protect the brakes from corrosion.
Instead of issuing a recall, Hyundai told dealers to change the brake fluid without explaining the
consequences to owners or dealers. Hyundai issued a recall of the affected vehicles in October 2013
as a result of a NHTSA investigation.
NHTSA said there are no known fatalities related to Hyundai’s brake defect. However, six
consumers reported crashes, including injuries, and Hyundai has received 87 consumer complaints.
Hyundai said most of the affected Genesis vehicles have been repaired.
“Hyundai remains committed to making safety our top priority, and is dedicated to ensuring
immediate action in response to potential safety concerns including the prompt reporting of safety
defects,” David Zuchowski, Hyundai Motor America CEO, said in a statement.
In the wake of the brake investigation, and heightened scrutiny by NHTSA, Hyundai has established
a new technical committee in the U.S. to review safety issues. The company is planning to add
several people to focus on recall issues.
“In order to mitigate a situation like this in the future, Hyundai is instituting new
organizational and process improvements ... to readily respond to regulatory reporting
requirements,” Zuchowski said.
The committee also will meet with NHTSA officials, said Hyundai spokesman Chris Hosford.
The committee was required by a consent order Hyundai signed with NHTSA.
Contact Brent Snavely: 313-222-6512 or bsnavely@freepress.com. Follow him on Twitter
@BrentSnavely.
http://www.freep.com/article/20140807/BUSINESS0104/308070192/1210/business01