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Hyundai Pays Big Government Fine

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WASHINGTON (AP) — The government says Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars.

The National Highway Traffic Safety Administration said the defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash.

The agency said Hyundai was aware in 2012 that brake fluids used in the model year 2009-2012 Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle’s brake system. The agency said that rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences failure to take that action might have.

Hyundai recalled 27,000 of the cars last year just hours before the government opened an investigation.

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