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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 recalls 570k Sonatas and Accents in two separate campaigns

Hyundai is announcing two recalls that cover a total of 569,500 vehicles in the US for two of the brand's models. There are no reports of accidents or injuries related to either problem, though. The larger and potentially more serious campaign covers 470,000 units of the 2011-2012 Sonata with production dates between December 11, 2009, and April 12, 2012 at Hyundai Motor Manufacturing Alabama. It's specifically for those with the 2.0- or 2.4-liter direct injected engines. During production of the crankshaft, metal debris might not have been fully removed, and those pieces could block the connecting rod oiling passages. This lack of lubrication can increase wear on the connecting rod bearings, and the issue can lead to a loud knocking noise or possibly even a failure while the car is in motion. Hyundai has a two-step process to fix the issue. First, the company will have the vehicles come in for an inspection, and if necessary will "replace the engine assembly." The company will also extend the warranty on the short block to 10 years/120,000 miles for all owners. Notifications will go out by November 2, and there will be a second letter when the parts become available. The other recall covers 99,500 examples of the 2009-2011 Hyundai Accent with manufacturing dates between March 1, 2009, and February 11, 2011. On these models, the brake light switch may begin to only work intermittently. This can lead to a variety of problems, including the brake lights not coming on, the inability to turn off the cruise control with the pedal, and the shifter not moving out of Park. The fix will be a replacement of the switch, and the campaign will begin on November 2. Related Video: RECALL Subject : Connecting Rod Wear may Result in Engine Stall Report Receipt Date: SEP 10, 2015 NHTSA Campaign Number: 15V568000 Component(s): ENGINE Potential Number of Units Affected: 470,000 All Products Associated with this Recall Vehicle Make Model Model Year(s) HYUNDAI SONATA 2011-2012 Details Manufacturer: Hyundai Motor America SUMMARY: Hyundai Motor America (Hyundai) is recalling certain model year 2011-2012 Sonata vehicles manufactured December 11, 2009, to April 12, 2012 at Hyundai Motor Manufacturing Alabama and equipped with either a 2.0 liter or 2.4 liter Gasoline Direct injection engine. In the affected vehicles, metallic debris may not have been fully removed during manufacturing of the engine crankshaft.

Hyundai will invest $35 billion in autonomy and emerging technologies

SEOUL — Hyundai Motor Group said it plans to invest $35 billion (41 trillion won) in mobility and other auto technologies by 2025, part of which will be directed to an ambitious effort to become more competitive in self-driving cars that has also received government backing. The plan, which Hyundai said encompasses autonomous, connected and electric cars as well as technology for ride-sharing, comes after the automaker and two of its affiliates announced an investment of $1.6 billion in a venture with U.S. self-driving tech firm Aptiv. South Korea's government is also onboard, unveiling more funding for autonomous vehicle technology with President Moon Jae-in declaring on Tuesday that he expected self-driving cars to account for half of new cars on the country's roads by 2030. "The self-driving market is a golden market to revitalize the economy and create new jobs," Moon said in a speech at Hyundai Motor's research center near Seoul. The government intends to spend 1.7 trillion won between 2021 and 2027 on self-driving technology. It expects Hyundai to launch level 4, or fully autonomous, cars for fleet customers in 2024 and for the general public by 2027, an industry ministry official told Reuters. But some experts question whether targets set by the government and the automotive group, which also includes Kia Motors, are realistic given the technological and cost challenges and the lack of home-grown technology. In a 45-page report on future automotive technology, the government acknowledged South Korea lags in some key areas necessary for self-driving cars such as artificial intelligence, sensors and logic chips. "Hyundai has to buy technology from someone else because it lacks software technology. Even though it has a lot of cash, this could become a financial burden if its earnings deteriorate," Esther Yim, an analyst at Samsung Securities, said. Other analysts noted that the prospects for self-driving cars are quite murky. General Motors' self-driving unit, Cruise, said in July it was delaying the commercial deployment of cars past its target of 2019 as tech firms and automakers acknowledge it will take more time and money than they had expected to make autonomous vehicles safe for unrestricted use on public roads. South Korea's government said it would prepare a regulatory and legal framework for autonomous cars and the safety questions they pose by 2024.