According to the Associated Press, a whistleblower who reported that automakers Hyundai and Kia acted too slowly to recall vehicles with serious engine problems was awarded more than $24 million by the U.S. government road safety agency.
More than 1 million cars have been recalled for this issue, which may cause the engine to freeze or catch fire.
The National Highway Traffic Safety Administration (NHTSA) stated in November 2020 that Hyundai and Kia will have to pay US$137 million to pay fines and safety improvements aimed at solving engine problems. The announcement ended the government’s three-year investigation into how the two companies handled the recall of several models dating back to the 2011 model year.
The amount paid to the whistleblower is the maximum percentage of the fine that can be imposed on the whistleblower under the law. According to the Associated Press, NHTSA stated that this is the first award it has ever awarded to whistleblowers.
NHTSA Deputy Director Dr. Steven Cliff (Steven Cliff) said in a statement: “The whistleblower plays a vital role in providing NHTSA with information about serious security issues hidden by the agency.” This information is vital to public safety, and we are committed to rewarding those who provide us with information.”
The agency did not name the informant, but stated that the person “provided NHTSA with information related to Hyundai and Kia’s violations of safety laws”. The statement stated that the two automakers “reported to NHTSA with inaccurate key information about serious engine defects.”
For more reports from the Associated Press, please see below.
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Hyundai must pay a civil fine of 54 million U.S. dollars and invest 40 million U.S. dollars to improve safe operations. Kia, which is part of Hyundai, must pay a fine of 27 million U.S. dollars and invest 16 million U.S. dollars in safety performance measures. The total fines imposed by the two automakers amounted to US$81 million.
According to the law, the agency can award 30% of fines to whistleblowers who provide important information, resulting in a fine of more than $1 million.
The statement said that the agency is drafting regulations for its whistleblower plan, but it can award rewards before the rules are finalized.
After Hyundai Motor recalled approximately 470,000 vehicles in September 2015, the US safety agency began an investigation in 2017 because debris generated during the manufacturing process may restrict the flow of oil to the connecting rod bearings. This may cause bearing wear and failure, which may cause the four-cylinder “Theta II” engine to stall or catch fire. Repairs are expensive engine block replacements.
NHTSA stated in the investigation document that Hyundai Motor will only recall engines manufactured before April 2012, and stated that manufacturing issues have been resolved after that. In addition, Kia did not recall cars and SUVs equipped with the same 2.4-liter and 2-liter “Theta II” engines, saying that they were produced on different assembly lines in a factory in Alabama.
However, when the NHTSA launched an investigation, it said that 18 months after the 2015 recall, the two automakers announced that they had recalled 1.2 million vehicles for the same issue, including models that the automaker initially said were not affected.
Hyundai Motor said in a statement on Tuesday that it attaches great importance to safety and is fostering a culture of transparency and accountability. The company said in 2019 that it added a chief security officer in North America, responsible for enforcing high security standards. Leave a message to seek Kia’s comment. Kia denied the government’s allegations last year, but expressed its hope to avoid a protracted legal battle.
Engine failures and fire problems of Hyundai and Kia have plagued these companies for more than five years, affecting more than 8 million car owners.
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