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Hyundai Fined $17.35 Million For Delayed Recall

Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars, the National Highway Traffic Safety Administration said Thursday. The defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash, NHTSA said. Hyundai was aware in 2012 that brake fluids used in the model year 2009-2012 Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle's brake system, the agency said. But rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences that failure to take that action might have, NHTSA said. Hyundai also did not inform Genesis owners of the potential safety consequences, the agency said. Hyundai recalled 27,500 of the cars in October 2012 just hours before the government opened an investigation. "Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects," David Friedman, head of the safety administration, said in a statement. About 70 percent of the affected Genesis cars have been repaired so far, the safety administration said. Hyundai is committed to ensuring immediate action in response to potential safety concerns, including the prompt reporting of safety defects, said Jim Trainor, a senior group manager for Hyundai Motor America. "In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements, and enhancing the ability of its U.S. leadership team to readily respond to regulatory reporting requirements," he said in an email. In May, the safety administration slapped General Motors with a record $35 million fine Friday for taking more than a decade to disclose an ignition-switch defect in millions of cars that has been linked to at least 13 deaths. Earlier this year, after a four-year criminal investigation, the Justice Department made Toyota pay $1.2 billion for concealing unintended acceleration problems from NHTSA. No individuals were charged with a crime. Related Gallery Safest Crossovers For The Budget-Conscious Family View 10 Photos Recalls Genesis Hyundai NHTSA brakes

Kia reportedly plans to increase production of Telluride SUV

A new report from overseas says that Kia will increase production of the new Telluride SUV to 100,000 units due to strong demand for the three-row hauler in the U.S. Korean news site Motor Graph reports the decision was announced on a conference call at Kia’s headquarters in Seoul; Autoblog has sought confirmation from a Kia spokesman. The news comes on the heels of word that the Telluride, along with its corporate sibling the Hyundai Palisade, were getting some minor price increases, the second for both, with the Telluride starting at $33,060, including destination, after launching at $32,735. ItÂ’s also the latest sign of the popularity and positive reviews of the Telluride, which went on sale in March of last year. The Telluride just won the title of 2020 North American Utility of the Year, vanquishing the Palisade and the Lincoln Aviator, and itÂ’s earned a slew of other honors from automotive publications and organizations. Kia builds the Telluride at its plant in West Point, Georgia and sold 58,604 models in the less than eight months it was on sale in 2019, with an established clip north of 6,000 per month by yearÂ’s end. Recent rumors have suggested Kia could be planning a range-topping trim level, complete with fancy new interior colors and an off-road package that could push the Telluride toward the $50,000 mark. Kia also plans to launch the compact Seltos crossover during the first quarter of this year. Meanwhile, corporate sibling Hyundai also launched the Palisade three-row ‘ute in 2019, one of two new Hyundai nameplates last year along with the compact Venue crossover, which launched in November. From its launch in June through December, the Palisade posted sales of 28,736, with steady month-over-month increases. A Hyundai spokesman said he had no information to share about production plans but said the Palisade was seeing good demand from car buyers. The Palisade is built in Ulsan, South Korea for the U.S. market. Related Video:

John Krafcik eyes Sonata, talks about his new role

As hundreds of people gathered to watch the unveiling of the 2015 Hyundai Sonata at the New York Auto Show on Wednesday, John Krafcik, a driving force behind the new vehicle, found himself in a peculiar position.
He stood far away from the car, away from the crowd. He watched from the Nissan stand as the covers were pulled off the Sonata.
If it was an awkward moment for Krafcik, whose tenure as Hyundai's chief executive officer ended on January 1, he didn't show it. He offered effusive praise of the Sonata. "It's a beautiful car," he said. "I think it's wonderful."