Hyundai fined $ 54 million for faulty engines

Hyundai fined $ 54 million for faulty engines

November 28, 2020 0 By autotimesnews

Back in 2017, Hyundai and KIA recalled 1.5 million vehicles in the US, Canada, and South Korea. This is one of the largest recalls of the year, affecting 1.19 million vehicles in the US and over 114,000 vehicles in Canada.

The problem, as the National Highway Traffic Safety Administration previously pointed out, was handling errors in car manufacturing, which could cause “premature wear of bearings in the engine.” The review affected Hyundai Sonata 2011–2014, Santa Fe Sport 2013–2014, as well as KIA models. As a result, the company was forced to replace engines for free.

This service campaign has been completed, Hyundai said in a press release. As part of the agreement, the Korean brand will pay a $ 54 million fine and will have to invest another $ 40 million to improve the safety of operations. Hyundai will also be given a $ 46 million deferred payment option, subject to the company’s compliance with the NHTSA Order of Consent.

It is reported that the company will invest $ 40 million in the construction of a testing laboratory and security inspections in the United States, as well as in the implementation of new IT systems to better analyze security data and identify potential problems.