US transportation authorities pay 90 billion won to Hyundai and Kia Motors … engine recall problem ends

[데일리시사닷컴]In three years, Hyundai Motor and Kia Motors have agreed with US transportation authorities to impose a fine for completing the investigation into the engine recall process.

With this agreement, Hyundai-Kia Motors will be able to resolve the risks and uncertainties associated with the Theta 2 GDi engine in the United States.

On the 28th, Yonhap News reported that the US National Highway Traffic Safety Administration (NHTSA) imposed a $ 81 million (approximately KRW 90 billion) fine following an investigation into the adequacy of the recall for the engine. Theta 2 GDi from Hyundai and Kia made.

According to reports, Hyundai Motor Company has agreed with NHTSA to pay a $ 54 million (59.9 billion won) penalty and Kia Motors $ 27 million (29.9 billion won).

Furthermore, according to the agreement with NHTSA, Hyundai Motor Company has decided to invest $ 40 million (44.4 billion won) and Kia Motors $ 16 million (17.7 billion won) to strengthen the performance measurement of security and develop a quality data analysis system.

If the deal is not honored, US authorities will charge an additional $ 46 million for Hyundai and $ 27 million for Kia.

Excluding internal investments and the amount charged for non-compliance with the agreement, the total cost of the penalty is $ 81 million. The sum of the penalty and the amount of internal investment is $ 137 million.

NHTSA said in a press release that “automakers should be aware of the urgency of safety recalls” and that the imposition of additional fines will be reserved as long as safety conditions are met.

Brian Ratov, Chief Safety Officer of Hyundai Motor Company, said, “We appreciate the cooperation and cooperation with the US Department of Transportation and NHTSA and will continue to work closely with these agencies to proactively identify and address potential problems. safety”. .

Since 2017, NHTSA has conducted a survey on the adequacy of the recall of vehicles equipped with Theta 2 GDi engines conducted by Hyundai Motors and Kia Motors in 2015 and 2017 respectively.

Hyundai and Kia Motors recalled in 2015 and 2017 that some engine defects could occur for different reasons during the engine manufacturing process at US factories.

As a result, a class action lawsuit was filed in the United States, and the Southern New York Attorney’s Office and NHTSA conducted an investigation and investigation into the adequacy and delay of the recall, respectively.

Hyundai Motor Company and Kia Motors agreed a settlement last year with customers of the Theta 2 GDi engine class lawsuit and, in June, received preliminary approval from the US court and are implementing customer compensation.

The US prosecutor’s investigation also ended without charge in June.

The last remaining NHTSA investigations were also agreed and legal and administrative procedures were completed.