A $17.35 Million Fine For Hyundai

You would have thought that other manufacturers would look at GM’s mismanagement of its ignition switch recalls and decide that they did not want to face similar problems. The solution is simple: when it comes to safety, be honest. Don’t try to cut corners to save a few dollars, in the long run, that will come back to bite you.

Hyundai certainly learned that the hard way. They will have to pay a $17.35 million fine to the NHTSA for failing to mention an important safety issue.

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It would seem that some of their Genesis sedans produced between 2009 and 2012 were sold with a brake fluid incompatible with the brake system, which would then corrode and thus lose stopping power. The manufacturer has known about this problem since 2012, but instead of recalling the vehicles, they discreetly asked their dealerships to change the fluid when a car came in for service.

The NHTSA learned about it, which prompted Hyundai to recall about 27,500 cars. In November 2013, that number climbed to 43,500.

Luckily, no one was seriously injured because of the failing brakes. Even so, the manufacturer has been severely punished, since the fine they received is the largest the law would allow.