Whistleblower gets $24M in Hyundai-Kia engine recall case

The U.S. government’s road safety agency has paid more than $24 million to a whistleblower who reported that Hyundai and Kia moved too slowly to recall over 1 million vehicles with engine problems

DETROIT -- The U.S. government's road safety agency has paid more than $24 million to a whistleblower who reported that Hyundai and Kia moved too slowly to recall over 1 million vehicles with engines that could freeze up or catch fire.

The National Highway Traffic Safety Administration says the award is the first it has paid to a whistleblower. It's also the maximum percentage allowed by law of penalties paid by the Korean automakers.

In November of 2020, the agency announced that Hyundai and Kia would pay $137 million in fines and for safety improvements in an agreement to fix the engine problems. The announcement resolved a three-year government probe into the companies’ behavior involving recalls of multiple models since the 2011 model year.

Hyundai had to pay $54 million in civil penalties and invest $40 million to improve safety operations. Kia, which is affiliated with Hyundai, had to pay $27 million in penalties and invest $16 million on safety performance measures. The penalties from both automakers totaled $81 million.