By Matt Grossman

Hyundai Motor America Inc. and Kia Motors America Inc. have agreed to consent orders with the National Highway Traffic Safety Administration over their handling of recalls related to engine problems, the regulatory agency said Friday.

The combined penalties under the two orders total $210 million. Hyundai's penalty is $140 million, including an up-front payment of $54 million, an obligation to spend $40 million on enhanced safety measures and a $46 million deferred penalty. Kia is subject to a $70 million penalty, comprising an up-front payment of $27 million, an obligation to spend $16 million on safety measures and a deferred $27 million component.

"We value a collaborative and cooperative relationship with the U.S. Department of Transportation and NHTSA and will continue to work closely with the agency to proactively identify and address potential safety issues," said Brian Latouf, Hyundai's chief safety officer.

"We are pleased to be able to direct our attention to improving and enhancing our recall-management processes and our priority remains making things right for our customers," Kia said.

The consent orders relate to the car makers' handling of recalls of more than 1.6 million vehicles with Theta II engines produced in the first half of the 2010s, the NHTSA said. The companies' recalls were untimely, and information the companies provided to the agency contained inaccuracies, it said.

The orders note that the car makers disagreed with the NHTSA's assertions but added that they agreed to the orders to administratively resolve the inquiries.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

November 27, 2020 17:38 ET (22:38 GMT)