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Hyundai to Pay $17.35 Million for Delayed Defect Reporting

The government says Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars.
Hyundai is recalling 420,000 more vehicles in the United States, one day after recalling some 880,000 cars.
The government says Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars.JEON HEON-KYUN / EPA
/ Source: The Associated Press

The government says 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 the defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash. The agency said Thursday that 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 that rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences failure to take that action might have. Hyundai recalled 27,000 of the cars last year just hours before the government opened an investigation. The automaker says the majority of the affected cars have been repaired.

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-The Associated Press and NBC News staff