Hyundai/Kia recalls and lawsuits
11-28-20, 05:56 AM
#1
Lexus Fanatic
Thread Starter
Hyundai/Kia recalls and lawsuits
NHTSA concluded the automakers didn't respond well enough in recalls of 2011–2014 models including the Santa Fe Sport and Sonata.
Hyundai Motor America announced today that it has reached an agreement with the National Highway Traffic Safety Administration (NHTSA) following an investigation into the way it conducted a recall. The problem involved the automaker's 2.0- and 2.4-liter Theta II engines in the 2011–2014 Hyundai Sonata and the 2013–2014 Santa Fe Sport, in which metal debris created during machining operations at the factory led to premature bearing wear and potential engine failure.\NHTSA's investigation concluded that the automaker did not recall 1.6 million vehicles subject to the problem "in a timely fashion," as Reuters reported today, and that Hyundai did not give out accurate information about the recalls.
Total penalties include a $54 million fine to be paid first, an agreement to put $40 million into improving safety operations, and a potential additional $46 million fine that may be levied later depending on how well Hyundai meets NHTSA's requirements in the newly issued Consent Order.
Kia, through a separate Consent Order, was fined $27 million in cash penalties plus a potential later fine of $27 million, and the requirement to pay $16 million for safety process improvement. This is related to a separate recall including the 2011–2014 Optima, 2012–2014 Sorento, and 2011–2013 Sportage, also with the 2.0- and 2.4-liter Theta II engines, NHTSA's order said.
The company will set up new IT systems "to better analyze safety data and identify potential safety issues," and it will set up a new field testing and inspection laboratory in the U.S., Hyundai said.
NHTSA's investigation concluded that the automaker did not recall 1.6 million vehicles subject to the problem "in a timely fashion," as Reuters reported today, and that Hyundai did not give out accurate information about the recalls.
Total penalties include a $54 million fine to be paid first, an agreement to put $40 million into improving safety operations, and a potential additional $46 million fine that may be levied later depending on how well Hyundai meets NHTSA's requirements in the newly issued Consent Order.
Kia, through a separate Consent Order, was fined $27 million in cash penalties plus a potential later fine of $27 million, and the requirement to pay $16 million for safety process improvement. This is related to a separate recall including the 2011–2014 Optima, 2012–2014 Sorento, and 2011–2013 Sportage, also with the 2.0- and 2.4-liter Theta II engines, NHTSA's order said.
The company will set up new IT systems "to better analyze safety data and identify potential safety issues," and it will set up a new field testing and inspection laboratory in the U.S., Hyundai said.
https://www.caranddriver.com/news/a3...ngine-recalls/
Hyundai Motor America announced today that it has reached an agreement with the National Highway Traffic Safety Administration (NHTSA) following an investigation into the way it conducted a recall. The problem involved the automaker's 2.0- and 2.4-liter Theta II engines in the 2011–2014 Hyundai Sonata and the 2013–2014 Santa Fe Sport, in which metal debris created during machining operations at the factory led to premature bearing wear and potential engine failure.\NHTSA's investigation concluded that the automaker did not recall 1.6 million vehicles subject to the problem "in a timely fashion," as Reuters reported today, and that Hyundai did not give out accurate information about the recalls.
Total penalties include a $54 million fine to be paid first, an agreement to put $40 million into improving safety operations, and a potential additional $46 million fine that may be levied later depending on how well Hyundai meets NHTSA's requirements in the newly issued Consent Order.
Kia, through a separate Consent Order, was fined $27 million in cash penalties plus a potential later fine of $27 million, and the requirement to pay $16 million for safety process improvement. This is related to a separate recall including the 2011–2014 Optima, 2012–2014 Sorento, and 2011–2013 Sportage, also with the 2.0- and 2.4-liter Theta II engines, NHTSA's order said.
The company will set up new IT systems "to better analyze safety data and identify potential safety issues," and it will set up a new field testing and inspection laboratory in the U.S., Hyundai said.
NHTSA's investigation concluded that the automaker did not recall 1.6 million vehicles subject to the problem "in a timely fashion," as Reuters reported today, and that Hyundai did not give out accurate information about the recalls.
Total penalties include a $54 million fine to be paid first, an agreement to put $40 million into improving safety operations, and a potential additional $46 million fine that may be levied later depending on how well Hyundai meets NHTSA's requirements in the newly issued Consent Order.
Kia, through a separate Consent Order, was fined $27 million in cash penalties plus a potential later fine of $27 million, and the requirement to pay $16 million for safety process improvement. This is related to a separate recall including the 2011–2014 Optima, 2012–2014 Sorento, and 2011–2013 Sportage, also with the 2.0- and 2.4-liter Theta II engines, NHTSA's order said.
The company will set up new IT systems "to better analyze safety data and identify potential safety issues," and it will set up a new field testing and inspection laboratory in the U.S., Hyundai said.
https://www.caranddriver.com/news/a3...ngine-recalls/
11-28-20, 05:58 AM
#2
Lexus Fanatic
Thread Starter
Hyundai stills to struggle with longevity.....they seem to have a lot of fire issues. maybe too many corners were cut
https://hyundaiengineinfo.com
https://hyundaiengineinfo.com
Last edited by Toys4RJill; 11-28-20 at 06:48 AM.
11-28-20, 07:22 AM
#3
Lexus Test Driver
The recalls have nothing to do with longevity- they were announced back in 2015 for 2011-2014 models. The engines that did have debris died pretty quickly because of the shrapnel. The issue isn't so much about the defect itself as it is the delayed roll-out of the recall years on.
11-28-20, 07:38 AM
#4
Lexus Fanatic
The problem involved the automaker's 2.0- and 2.4-liter Theta II engines in the 2011–2014 Hyundai Sonata and the 2013–2014 Santa Fe Sport, in which metal debris created during machining operations at the factory led to premature bearing wear and potential engine failure.
12-04-20, 07:35 PM
#5
Lexus Fanatic
Thread Starter
After being fined by US, Hyundai recalls more vehicles
12-04-20, 08:27 PM
#7
Lexus Fanatic
So, what's fining company $210M going to accomplish? 
Money doesn't grow on trees. That's $210M that won't be able to go into better QC for the engines and/or to help prevent future fires.
Money doesn't grow on trees. That's $210M that won't be able to go into better QC for the engines and/or to help prevent future fires.
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12-04-20, 08:30 PM
#8
Lexus Fanatic
Thread Starter
It will force Hyundai to take things more serious and provide more transparency. The fine is likely why today’s recall occurred.
12-04-20, 08:55 PM
#9
Lexus Test Driver
That's a drop in the bucket compared to Toyota's infamous unintended acceleration penalties, which were $1.2 billion.
12-04-20, 09:25 PM
#10
Lexus Fanatic
You're confusing the forest for the trees. Money that is taken from companies in fines cannot be used to help correct the problem in the first place. One cannot fill a water-jug by pouring water out of it.
12-04-20, 10:09 PM
#11
Lexus Fanatic
12-04-20, 10:18 PM
#12
Lexus Fanatic
I see at least two alternatives.
One thing that would probably be more effective in the long run (and not waste existing company funds on fines) is if they were told to either correct the problem in good faith, or their license to do business in the U.S. is suspended until they do. For a company the size of Hyundai/Kia, that would mean a lot of lost sales in the U.S., and a lot of irked customers that couldn't buy new vehicles while the license was suspended. Those frustrated potential customers alone would demand company action.
Another would be if the company's liability-insurance company simply told them they wouldn't pay out any claims for injuries/deaths or to cover vehicle damage/replacement if the company visibly stalls at dealing with the problem and/or refuses to do a proper recall.
One thing that would probably be more effective in the long run (and not waste existing company funds on fines) is if they were told to either correct the problem in good faith, or their license to do business in the U.S. is suspended until they do. For a company the size of Hyundai/Kia, that would mean a lot of lost sales in the U.S., and a lot of irked customers that couldn't buy new vehicles while the license was suspended. Those frustrated potential customers alone would demand company action.
Another would be if the company's liability-insurance company simply told them they wouldn't pay out any claims for injuries/deaths or to cover vehicle damage/replacement if the company visibly stalls at dealing with the problem and/or refuses to do a proper recall.
12-05-20, 05:14 AM
#13
Lexus Fanatic
Thread Starter
I see at least two alternatives.
One thing that would probably be more effective in the long run (and not waste existing company funds on fines) is if they were told to either correct the problem in good faith, or their license to do business in the U.S. is suspended until they do. For a company the size of Hyundai/Kia, that would mean a lot of lost sales in the U.S., and a lot of irked customers that couldn't buy new vehicles while the license was suspended. Those frustrated potential customers alone would demand company action.
Another would be if the company's liability-insurance company simply told them they wouldn't pay out any claims for injuries/deaths or to cover vehicle damage/replacement if the company visibly stalls at dealing with the problem and/or refuses to do a proper recall.
One thing that would probably be more effective in the long run (and not waste existing company funds on fines) is if they were told to either correct the problem in good faith, or their license to do business in the U.S. is suspended until they do. For a company the size of Hyundai/Kia, that would mean a lot of lost sales in the U.S., and a lot of irked customers that couldn't buy new vehicles while the license was suspended. Those frustrated potential customers alone would demand company action.
Another would be if the company's liability-insurance company simply told them they wouldn't pay out any claims for injuries/deaths or to cover vehicle damage/replacement if the company visibly stalls at dealing with the problem and/or refuses to do a proper recall.
I think the fines actually worked....Hyundai just did another recall after the fines were made and were offered a way out of some of the $$$ if they did it in a timely manner......Hyundai has now actually recalled the replacement engines they installed to replace original defective engines...its quite a mess (hence the reason for the fines)
Last edited by Toys4RJill; 12-05-20 at 05:18 AM.
12-05-20, 08:01 AM
#14
Lexus Fanatic
if
I think the fines actually worked....Hyundai just did another recall after the fines were made and were offered a way out of some of the $$$ if they did it in a timely manner......Hyundai has now actually recalled the replacement engines they installed to replace original defective engines...its quite a mess (hence the reason for the fines)
I think the fines actually worked....Hyundai just did another recall after the fines were made and were offered a way out of some of the $$$ if they did it in a timely manner......Hyundai has now actually recalled the replacement engines they installed to replace original defective engines...its quite a mess (hence the reason for the fines)
12-05-20, 08:07 AM
#15
Lexus Fanatic
Thread Starter