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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

Hyundai planning pure electric Genesis model

The market for luxury EVs is set to grow bigger by at least one model. The latest is set to come from Genesis, the new luxury brand launched by Hyundai. The news, according to Reuters, was revealed by the brand's chief executive Manfred Fitzgerald at the Busan Motor Show in South Korea. "We will definitely go as Genesis brand down the road of alternative propulsions and it is very, very obvious that EV is definitely on the map," said Fitzgerald "I think full electric cars will be the future in the auto industry." The executive stopped short of providing further details or a timeline for the EV's eventual launch, however it's not the first alternative powertrain the brand will offer. The G80 (pictured) is set to gain a diesel version to join the existing gasoline model, aimed principally at the vital European market that Genesis' key rivals call home. The electric Genesis would join a growing field of luxury EVs. Faraday Future is taking aim at Tesla, German automakers like Audi, BMW, Mercedes, and Porsche are expected to launch upscale electric vehicles – and others are likely to follow. Fitzgerald recently signed on as Senior Vice President at the Hyundai group to oversee the Genesis brand, having previously served as branding chief at Lamborghini. He is one of a number of Westerners recruited by Hyundai's vice chairman and heir apparent Chung Eui-sun, the impetus for the upscale brand's launch, alongside the likes of designer Luc Donckerwolke and performance engineer Albert Biermann. Related Video:

Hyundai closes the books on fuel economy litigation

Hyundai-Kia ended up with a lot of kimchi on its face in 2012 when it admitted it had mistakenly exaggerated fuel economy estimates on several 2012 and 2013 model-year offerings like the Hyundai Accent, Veloster and Elantra and Kia Soul. Before the admission a lawsuit had been filed by an entity called Consumer Watchdog, afterward there were "approximately 53" lawsuits filed in federal court that were eventually consolidated into one case in a California Central District court.
The companies apologized profusely and gave customers prepaid gas cards that they could refill with funds for as long as they own their vehicle, as well as perks like free car washes and routine maintenance services. The company has just announced that it has reached a preliminary settlement of the case by adding another method of reimbursement, a lump sum payment that would free drivers from having to go back to the dealership to have their mileage verified for debit card refills.
Assuming the preliminary agreement is approved by the judge, customers could choose the lump sum or the cards. The settlement's value could be as much as $210 million, but the exact number depends on which program plaintiffs choose. On average, affected customers will receive $353. Approval could come in "early 2014," after which Hyundai will notify customers. You'll find more particulars on the potential settlement in the press release below.