US REGULATORS STEP UP PROBE INTO KIA, HYUNDAI ENGINE FAILURES AND FIRES

The National Highway Traffic Safety Administration (NHTSA) said it had opened an “engineering analysis” covering about 3 million vehicles to evaluate, among other things, the efficacy of recalls initiated by the two automakers. The agency added that it was aware of 161 fires occurring, potentially due to engine failures.

The agency had opened an investigation in 2019 covering the 2011-2014 Kia Optima and Sorento, and the 2010-2015 Kia Soul, along with the 2011-2014 Hyundai Sonata and Santa Fe, to investigate instances of non-crash fires.

Hyundai said on Monday that it is cooperating fully with U.S. regulators.

“Hyundai has taken numerous proactive actions to address engine issues, including conducting several recalls, launching a new engine monitoring technology, providing extended warranties and enhancing our customer service response,” the company said in a prepared statement. “Hyundai fosters a culture of transparency and accountability as the safety of our customers is the top priority in everything we do.”

In November of 2020, NHTSA announced that Kia and Hyundai must pay $137 million in fines and for safety improvements because they moved too slowly to recall more than 1 million vehicles with engines that can fail. The fines resolve a previous probe into the companies’ behavior involving recalls of multiple models dating to the 2011 model year.

Kia was to pay $27 million and invest $16 million in safety performance measures. Another $27 million payment will be deferred as long as Kia meets safety conditions, NHTSA said.

Kia denied the U.S. allegations but said it wanted to avoid a protracted legal fight.

Data collected by the nonprofit Center for Auto Safety show 31 U.S. fire and engine-related recalls from Hyundai and Kia since 2015. The recalls involve more than 20 models from the 2006 through 2021 model years totaling over 8.4 million vehicles.

Many of the recalls involved manufacturing defects that stopped oil from flowing through the engine block. Many involved expensive engine replacements.

Record civil penalty

Hyundai and Kia said on Monday they will continue to fully cooperate with NHTSA in regard to non-collision engine fires.

The two South Korean companies agreed to a record $210 million civil penalty last year, after regulators said they had failed to recall 1.6 million vehicles for engine issues in a timely fashion.