Hyundai, Kia Agree to U.S. Consent Orders Over Recalls
November 27 2020 - 5:53PM
Dow Jones News
By Matt Grossman
Hyundai Motor America Inc. and Kia Motors America Inc. have
agreed to consent orders with the National Highway Traffic Safety
Administration over their handling of recalls related to engine
problems, the regulatory agency said Friday.
The combined penalties under the two orders total $210 million.
Hyundai's penalty is $140 million, including an up-front payment of
$54 million, an obligation to spend $40 million on enhanced safety
measures and a $46 million deferred penalty. Kia is subject to a
$70 million penalty, comprising an up-front payment of $27 million,
an obligation to spend $16 million on safety measures and a
deferred $27 million component.
"We value a collaborative and cooperative relationship with the
U.S. Department of Transportation and NHTSA and will continue to
work closely with the agency to proactively identify and address
potential safety issues," said Brian Latouf, Hyundai's chief safety
officer.
"We are pleased to be able to direct our attention to improving
and enhancing our recall-management processes and our priority
remains making things right for our customers," Kia said.
The consent orders relate to the car makers' handling of recalls
of more than 1.6 million vehicles with Theta II engines produced in
the first half of the 2010s, the NHTSA said. The companies' recalls
were untimely, and information the companies provided to the agency
contained inaccuracies, it said.
The orders note that the car makers disagreed with the NHTSA's
assertions but added that they agreed to the orders to
administratively resolve the inquiries.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
November 27, 2020 17:38 ET (22:38 GMT)
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