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Safety: Whistleblower receives over $24m for information on Hyundai, Kia infractions

*The US National Highway Traffic Safety Administration encourages consumers to reach out if they are having issues with their vehicles as it gives over $24million to a whistleblower for providing information about Hyundai and Kia

Alexander Davis | ñ

A whistleblower’s efforts at revealing violations of the Safety Act in the United States (US) have made them millions richer.

The National Highway Traffic Safety Administration (NHTSA), in its first ever whistleblower award, is giving over $24million to a whistleblower for providing information to the NHTSA about Hyundai Motor America (Hyundai) and Kia Motors America (Kia) respectively.

It was learnt the award is the maximum percentage allowed by law of the $81 million in cash collected by the federal government.

By law, the NHTSA can award a whistleblower who contributes “significant information” regarding an action that ultimately results in penalties of more than a million Dollars, agency report noted.

Where Hyundai and Kia went wrong

The NHTSA had issued consent orders with Hyundai and Kia a year ago, based on the agency’s assessment that both companies made two serious mistakes.

For one, they conducted untimely recalls on over 1.6 million vehicles that were equipped with Theta II engines.

Two, they inaccurately reported crucial information to the NHTSA about the nature of serious defects in those engines, report said.

Dr. Steven Cliff, NHTSA’s Deputy Administrator, said:  “Whistleblowers play a crucial role in bringing information to NHTSA about serious safety problems that are hidden from the agency.

“This information is critical to public safety and we are committed to rewarding those who bring information to us.”

Report indicates the issues the regulator found were not exactly new, as a ConsumerAffairs reviewer, Jody of Waxhaw, N.C., in 2018, wrote about issues with their Hyundai Tucson and its Theta II engine.

Jody wrote: “Driving down a street 35 mph, the 2013 Tucson engine made loud sound all the lights came on and car shuddered and would not drive.

“Moved to side of road and towed to dealership. Theta-ii engine seized. Not repairable.”

It was at that point that Hyundai made a misstep that was similar to the move that cost them that massive NHTSA fine.

Jody of Waxhaw stated: “Dealership and manufacture[r] refused to help in any way despite known problem.

“Recalls have been made on this same engine in the Sonata and Santa Fe but not the Tucson. Eventually traded in as cost to replace engine with used engine (no new ones available) was prohibitive.

“The manufacturer was nonchalant and said they could not help us. We asked about the warranty and they said their warranty is only for original owner.

“We went to a Hyundai dealership and did not find that information anywhere! Dealership offered to sell us a new Hyundai. Will never buy their products again.”

Therefore, NHTSA wants consumers to know they, too, can file complaints. The agency requires any consumers who are experiencing problems with their vehicles to know that whistleblowers are protected by law.

The agency doesn’t have to issue a final rule for a whistleblower to receive a reward either.

The NHTSA says potential whistleblowers can provide information to the agency by emailing NHTSAWhistleblower@dot.gov or by calling the agency’s hotline at 888-327-4236.

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