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Auto whistleblower gets record US $24M

November 10th, 2021 | Tags:
Hyundai's Theta 2.0 engine. Photo: CNN
WASHINGTON, USA - The US auto safety regulator announced on Tuesday its first-ever reward to a whistleblower, handing out more than $24 million to a former Hyundai employee who provided key information about safety lapses at the South Korean carmaker.

The award to ex-Hyundai Motor engineer Kim Gwang-ho is the biggest ever in a whistleblower case in the auto sector globally, according to law firm Constantine Cannon, which represented Kim.

It comes as the US regulator, the National Highway Traffic Safety Administration (NHTSA), and the US Department of Transportation prepare to propose regulations related to an automotive whistleblower program Congress created in 2015.

Kim reported to NHTSA in 2016 that Hyundai was failing to address a design flaw linked to its Theta II engines, which were prone to seizing up and even catching fire.

"This award is the maximum percentage allowed by law," NHTSA said in a statement announcing the award.

"Whistleblowers play a crucial role in bringing information to NHTSA about serious safety problems that are hidden from the agency," said Steven Cliff, NHTSA's Deputy Administrator.

Citing an internal report from Hyundai's quality strategy team to management, Kim had told NHTSA the company was not taking enough action to address an engine fault that increased the risk of crashes.

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