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Hyundai, Kia fined Rs. 1533 Cr. in USA

While Hyundai released a statement saying they are taking immediate measures for better safety while Kia denied the allegations and agreed for a settlement to avoid lengthy dispute with the government.

The US National Highway Traffic Safety Administration (NHTSA) has reported that sister companies Hyundai and Kia have agreed to pay a fine of US$ 210 million for delaying a recall.

The Korean duo had delayed the recall of 1.6 million vehicles that had engine issues. Both carmakers admitted to reporting inaccurate details regarding recalls to the authorities. Hyundai’s penalty stands at US$ 140 million while Kia will be paying US$ 70 million. This includes upfront payment, allocation for specified safety measures and a deferred penalty if the obligations are not met. Hyundai will also invest US$ 40 million to build a safety field test and inspection laboratory in the United States and also upgrade its IT infra to better analyze safety data.

This settlement covers 2015 and 2017 recalls for issues that could lead to bearing wear and possibly engine failure. While Hyundai released a statement saying they are taking immediate measures for better safety while Kia denied the allegations and agreed for a settlement to avoid lengthy dispute with the government.

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