On November 9, 2021, the National Highway Traffic Safety Administration (“NHTSA” or “the Agency”) awarded $24 million to whistleblower Kim Gwang-ho, a Hyundai engineer who provided information about safety violations involving engines seizing and catching fire in vehicles manufactured by Hyundai and its subsidiary Kia Motors. Mr. Kim is the first recipient of a whistleblower award under the Motor Vehicle Safety Whistleblower Act.

Motor Vehicle Safety Whistleblower Act

The Motor Vehicle Safety Whistleblower Act (“the Act”), codified at 49 U.S.C. § 30172, created the NHTSA’s whistleblower reward program. Under the Act, employees or contractors of motor-vehicle manufacturers, parts suppliers, or dealers, may receive between 10% and 30% of any monetary sanction over $1 million recovered by the government in an action based on an individual’s report of any motor vehicle defects, noncompliance with, or violations of, safety laws to the Agency.

Enacted in 2015, the Act was introduced by Senator John Thune, with bipartisan support, in response to high-profile motor vehicle recalls necessitated by serious defects. At the time, Takada had issued a recall over airbags that shot metal debris, and GM had issued a recall over ignition switching, which caused engines to shut down while the vehicle was in motion and thereby prevented the airbags from deploying. GM’s engine defect resulted in over 100 deaths and many lawsuits.

The Act was also a response to record high civil penalties...

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