The National Highway Traffic Safety Administration (NHTSA) announced its first-ever whistleblower award in recognition of an individual who provided information about Hyundai Motor America (Hyundai) and Kia Motors America's (Kia) violations of the Safety Act, according to a press release from the U.S. Department of Transportation.
On Nov. 9, the NHTSA announced that it would reward a whistleblower more than $24 million for information provided to the agency involving the two automobile manufacturers.
“U.S. auto safety regulator awards over $24M to Hyundai whistleblower,” Twitter user @FargoTundra stated.
The NHTSA issued consent orders with Hyundai and Kia in November 2020, after the agency determined that both companies recalled over 1.6 million cars equipped with Theta II engines without adequately notifying the agency of the engine's defects, according to the release. The total penalties under the consent orders totaled $210 million, with the U.S. receiving $81 million in cash.
The $24 million payment is the maximum amount legally permissible from the $81 million penalty. The NHTSA can only pay up to 30% of collected funds to a whistleblower who provides essential information to an action that results in more than one million dollars in fines.
Additionally, the agency created a webpage on their site earlier this year to aid whistleblowers in selecting what information to share and how to do so. The NHTSA hopes it will increase accessibility to this program in acknowledgment of the critical role whistleblowers can play in improving the safety of the nation's roads.
