Transport Canada announces that Hyundai Auto Canada Corporation has pleaded guilty to criminal charges for violating the Motor Vehicle Safety Act
April 18, 2023 Ottawa Transport Canada
The safety and security of Canadians is a top priority for Transport Canada. We expect automobile manufacturers and importers to uphold their responsibilities under the Motor Vehicle Safety Act, and we will never hesitate to take the appropriate enforcement action to protect public safety when a company fails to comply with the law.
Today, the Minister of Transport, the Honourable Omar Alghabra, announced that Hyundai Auto Canada Corp. pleaded guilty to six different counts of criminal charges of violating the Motor Vehicle Safety Act.
The six guilty pleas were all for failing to send out notices of safety defect within 60 days. The company will also pay a fine of $360,000 for these charges.
The safety defects in question are related to six recalls issued by Hyundai in 2020 and 2021. These defects were serious in nature.
While Hyundai eventually notified owners, they did not do so within prescribed timelines, necessitating the criminal charges filed against the company.
With Hyundai’s guilty plea and fine, Transport Canada now considers this matter resolved.
The department will continue to closely monitor Hyundai’s compliance with Transport Canada’s requirements.
Transport Canada encourages all vehicle owners to have safety defects corrected as soon as possible. Vehicle safety recalls are available on Transport Canada’s Motor Vehicle Safety Recalls Database.
“Canadians have a right to obtain timely information about safety issues impacting their vehicles. It is alarming that Hyundai failed to notify vehicle owners of a recall in a timely manner on six different occasions, which is why Transport Canada pursued criminal charges against the company. We expect all vehicle manufacturers to abide by the law, and Transport Canada will not hesitate to act when safety has been compromised.”
The Honourable Omar Alghabra
Minister of Transport
The charges relate to six different notices of defect (recalls) dating back to 2020 and 2021, affecting nearly 300,000 vehicles. Some of these recalls addressed safety risks relating to possible vehicle fires, reduced braking performance, and sudden loss of engine power.
The prescribed timeline for issuing a recall is within 60 days.
Transport Canada uses a graduated enforcement approach which looks at the severity of the violations to determine the appropriate response.
In 2022, there were 749 recalls issued in Canada affecting just over 3.8 million vehicles, tires, and child restraint systems.
Office of the Honourable Omar Alghabra
Minister of Transport, Ottawa
Transport Canada, Ottawa
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