WASHINGTON (Reuters) – Hyundai Motor Co’s and Kia Motors Corp’s U.S. units on Friday agreed to a record-setting $210 million civil penalty after U.S. auto safety regulators over the untimely recalls of 1.6 million engines for fire risks.
The U.S. National Highway Traffic Safety Administration (NHTSA) said the two affiliated Korean automakers agreed to consent orders after the agency said they had inaccurately reported some information to NHTSA regarding the recalls.
Hyundai agreed to subject to a total civil penalty of $140 million, including an upfront payment of $54 million, an obligation to spend $40 million on safety performance measures, and an additional $46 million deferred penalty if it does not meet requirements
Kia’s civil penalty totals $70 million, including an upfront payment of $27 million, requirements to spend $16 million on specified safety measures and a potential $27 million deferred penalty.
The settlements are separate from ongoing NHTSA investigations into non-crash fires in certain Hyundai and Kia vehicles, some of which have the recalled engines.
(Reporting by David Shepardson; Editing by Chizu Nomiyama)
