Vehicle recalls aren't a new thing. We've seen other non-US carmakers to do the same. A few European brands have also recalled some of their models in the past.
Hyundai Motor and Kia Motors are being investigated, Reuters reported. The agency has gotten hold of information and documents pertinent to the in quest.
These South Korean car makers have undoubtedly been at the top five for over-all ranking in terms of their excellent world-class service. The recall was said to involve 1.7 million cars back in 2015 and 2017 in the United States. It was noted to be one of the huge recalls ever made in North America.
The reason for the said recalls was due to engine malfunctions which have resulted in fatal car crashes. Reports of incident-related road accidents relevant to the models were observed to dramatically increase during the said period.
In New York, the US Attorney's office for its South District initiated the investigation. A reliable source disclosed to Reuters, according to Automotive News.
It is not yet clear on whether the investigation would end up with criminal charges. This would mean huge sums of penalties for both Kia and Hyundai.
The National Highway Traffic Safety Administration has been sought by the DoJ for assistance on the matter. The alleged reliable source has also requested to remain anonymous.
The DoJ was asked for comment, but their official spokeswoman has remained mum on the matter, Nicole Navas Oxman. Her statement, "The Justice Department generally does not confirm, deny or otherwise comment on the existence or non-existence of an investigation."
In the past, those paid a hefty price for their recalls were Toyota Motor Corp and Volkswagen. However, the case was dismissed for Toyota back in 2017. It was rumored to have undergone a 1.2 billion settlement instead.
The largest settlement penalty fee to date was imposed on Volkswagen back in the same year, 2017. They were said to have paid $4.3 billions worth of penalties.
The South Korean manufacturing firms have reportedly shelled out $885 million in 2017 to cover the cost of the recall. Reportedly there were 470,000 units of their Sonata models recalled. Numbers are actually more according to an insider, Kim Gwang-ho, an engineer at Hyundai Motors.
