cars

Hyundai, Kia flag $2.9 billion earnings hit from quality costs


U.S. safety regulators in 2017 launched an investigation into the recall of nearly 1.7 million vehicles by Hyundai and Kia over an engine defect that increases the risk of a crash. The engines involved were fitted in Hyundai Sonata and Santa Fe vehicles in the U.S., and Kia Optima, Sorento and Sportage models, all of which share the powertrain.

A South Korean whistleblower, who was a former quality official at Hyundai, reported concerns in 2016 to NHTSA, which has started probing whether their recalls covered enough vehicles and were conducted in a timely manner.

Hyundai was being investigated by U.S. prosecutors over whether vehicle recalls were conducted properly, Reuters reported in November 2018.



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