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Hyundai, Kia To Pay $210 Mln For Delayed Vehicle Recalls

(RTTNews) - Hyundai Motor America and Kia Motors America agreed to pay $210 million penalty after U.S. auto safety regulator alleged that the companies conducted untimely recalls of more than 1.6 million vehicles equipped with Theta II engines, and inaccurately reported certain information to the regulator regarding the recalls.

Hyundai Motor America confirmed that it has resolved an inquiry by the National Highway Traffic Safety Administration or NHTSA regarding the timeliness and scope of its 2015 and 2017 recalls involving 2011-2014 Sonata and 2013-2014 Santa Fe Sport vehicles. The recalls addressed manufacturing issues that could lead to bearing wear and engine failure.

As per consent order, Hyundai agreed to a total civil penalty of $140 million, including an upfront payment of $54 million, an obligation to expend an additional $40 million on safety performance measures, and an additional $46 million deferred penalty if specified conditions are not satisfied, NHTSA said in a statement.

Kia's civil penalty totals $70 million, including an upfront payment of $27 million, an obligation to expend an additional $16 million on safety performance measures, and an additional $27 million deferred penalty if specified conditions are not satisfied.

The Hyundai consent order is for three years, while Kia consent order is for two years, but both can be extended by one year.

In addition to monetary penalties, Kia will create a new U.S. safety office headed by a Chief Safety Officer, and Hyundai will build a U.S. test facility for safety investigations. Both companies will develop and implement sophisticated data analytics programs to better detect safety-related concerns, the NHTSA said.
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