Failed to withdraw millions of cars, Hyundai & Kia will be fined Rp. 2.9 T

Jakarta –

Original car manufacturer South Korea (South Korea) Hyundai Motor Co and Kia Motors subject to a fine of US $ 210 million or around Rp 2.95 trillion (exchange rate Rp. 14,074) by United States (US) government. This is a sanction because the Hyundai and Kia branches in the US failed to recall the 1.6 million units of their vehicles which experienced a production failure.

Reporting from Reuters, Saturday (28/11/2020), as many as 1.6 million units of vehicles manufactured by Hyundai and KIA in the US are reported to have engine problems.

The National Highway Traffic Safety Administration (NHTSA) said the two manufacturers agreed to pay the fine.

In detail, Hyundai will have to pay the fine amounting to US $ 140 million or around Rp 1.97 trillion. The fines consist of an upfront payment of US $ 54 million, obligation to improve safety performance of US $ 40 million, and an additional penalty of US $ 46 million for non-compliance.

Meanwhile, Kia Motors must pay US $ 70 million or around Rp. 985 billion consisting of an upfront payment of US $ 27 million, obligation to improve vehicle safety and security amounting to US $ 16 million, and potential deferred fines of US $ 27 million.

“It is imperative that manufacturers correctly recognize the urgency of their recall responsibility for their safety, and provide agents or dealers with timely and honest information about all problems on all vehicle units,” said Deputy NHTSA Administrator James Owens.

Hyundai and Kia admitted that they did not immediately inform the agent or dealer selling their units that their products had problems with their machines.

As part of the settlement, Hyundai is investing US $ 40 million or approximately Rp.562 billion to build a safety field testing and inspection laboratory in the US, and implementing the latest information technology systems to better analyze safety data.

(hns / hns)

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