Girardi | Keese

Hyundai to pay fine for dangerous products recall delay

There are many Hyundai owners throughout the state of California, as well as the rest of the United States. Recently, Hyundai Motor Co. came to an agreement to pay a fine of $17.4 million in the United States for not promptly reporting brake defects in its Genesis models.

According to the National Highway Traffic Safety Administration, the automaker instructed dealerships in 2012 to replace brake fluids, but never let them know that the reason for this was potential corrosion that could harm brake performance. Only after the NHTSA opened an investigation did the company issue a formal recall to inform dealers and owners.

This may not be as large as General Motor's $35 million fine for how it dealt with a recall of more than two million vehicles; however, the fine is one of the largest in history for this type of violation.

The president of Hyundai Motor America realizes the company made a mistake, and said, "In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements, and enhancing the ability of the U.S. leadership team to readily respond to regulatory reporting requirements."

Dangerous products have the potential to harm the people using them. This is particularly true in the auto industry with users relying on their vehicle to provide them with safe transportation at all times. If you have been injured due to a defective automotive part, even if a recall has been issued, you may find yourself in position to receive compensation from the at-fault party. This might include the automaker.

Source: Bloomberg, "Hyundai to Pay $17.4 Million Fine for Car-Recall Delay" Alan Levin, Aug. 07, 2014

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