Hyundai to Pay $54M Penalty for Faulty Santa Fe Engines, Sonata Engines

Hyundai to Pay $54M Penalty for Faulty Santa Fe Engines, Sonata Engines

This is the end of one of 2017’s biggest recalls.

In the United States, Canada and South Korea, Hyundai and Kia recall 1.5 million vehicles three years ago. It was one of the largest recalls in that year. 1.19 million vehicles were affected in the U.S., and more than 114,000 in Canada. What is the problem? The National Highway Safety Traffic Administration stated that machine errors could lead to premature bearing wear in the engine. Certain 2011-2014 Hyundai Sonata, 2013-2014 Santa Fe Sport and other Kia models were affected. As part of the service campaign, the company was forced to replace the engines. As announced by Hyundai In a press release. The agreement will see the Korean marque pay a $54 million cash penalty and make $40 million investments to improve its safety operations. A $46 million deferred payment could be made to Hyundai depending on compliance with the NHTSA Consent Order. If you are curious, the $40 million investment will be used to build a safety field testing and inspection laboratory in the U.S. as well as to implement new IT systems to improve safety data analysis and identify potential safety issues.

Hyundai to Pay $54M Penalty for Faulty Santa Fe Engines, Sonata Engines

“Customer safety and security are our top priority, and we are taking immediate actions to address any safety concerns,” stated Brian Latouf chief safety officer at Hyundai Motor North America. “We value a cooperative and collaborative relationship with the U.S. Department of Transportation (NHTSA) and will continue to work closely together to identify and address safety concerns. We will continue to work with the U.S. Department of Transportation and NHTSA to provide best-in-class safety services.”