Hyundai, Ford, BMW fined billions for violating safety standards

Ten automakers including Hyundai Motor, Mercedes-Benz and Porsche were fined for selling vehicles that failed to meet safety standards.

Volkswagen's Tiguan Allspace [YONHAP]

Ten automakers including Hyundai Motor, Mercedes-Benz and Porsche were fined a total of 10.3 billion won ($7.7 million) for selling vehicles that failed to meet safety standards, the Ministry of Land, Infrastructure and Transport said Wednesday.

Volkswagen Group Korea incurred the highest penalty of 3.5 billion won for errors found in its Advanced Driver Assistance Systems and insufficient performance in safety triangle reflectors across 55 vehicle models, including the Tiguan.

Mercedes-Benz Korea has been fined 2.5 billion won for Electronic Stability Program (ESP) errors found in 10 vehicle models, notably the Benz S580e4MATIC.

Ford Sales and Service Korea faced a fine of 1 billion won due to an audio control module error causing delays in seatbelt warnings.

Porsche Korea has been slapped with a 1 billion won fine for a dashboard program error that failed to indicate brake malfunctions.

GM Korea incurred a fine of 5.88 billion won for selling Equinox vehicles with seatbelt attachment devices too thick for proper installation.

Hyundai Motor has been fined 96 million won for errors in the motor-driven power steering (MDPS) system of the Avante N and faulty assembly of seatbelt components in its new County minibuses.

BMW Korea, Honda Korea, Toyota Motor Korea and Nissan Korea also face fines.

The fines imposed on the 10 companies, which were found to have violated regulations between January and June 2023, were calculated based on factors such as sales revenue, correction rate and maximum limits outlined in automobile management regulations, the transport ministry explained.

A group of carmakers including Hyundai Motor, Kia and Ford recalled nearly 55,000 vehicles last month after defects were found in the models' power transmission systems.

In addition to the fines, the ministry imposed penalties totaling 39 million won on five companies — including Stellantis Korea with the largest fine as well as Mercedes-Benz Korea, Volkswagen Group Korea, Ford Korea, and Kia — for selling vehicles without rectifying defects.

Further penalties amounting to 59 million won were levied on Porsche Korea, Stellantis Korea and Kia for failing to inform buyers about defect correction measures before sale.

As part of ongoing efforts to ensure vehicle safety, the ministry mandates that manufacturers with low correction rates notify vehicle owners of recall plans and provides recall information on the Car Recall Center website. Drivers are also informed of recall status during vehicle inspections, with periodic correction rate checks enforced.

“We aim to investigate instances of safety standard breaches to ensure citizens can safely utilize automobiles, and if violations are confirmed, we plan to take strict legal measures as prescribed, ensuring continued safety for all,” the ministry said.

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]