Hyundai, Kia to recall cars in US and South Korea over engine issue
SEOUL: Hyundai Motor Co and Kia Motors Corp plan to recall tens of thousands of vehicles in South Korea and an unidentified number in the United States due to engine issues.
The recall comes as Hyundai reels from record-low market share in South Korea and sluggish sales in the United States and China.
The two car companies said on Friday they will recall 171,348 vehicles in South Korea because of a manufacturing problem, which leads to possible engine stalling.
The South Korean automakers have also submitted plans to U.S. authorities to recall an unidentified number of vehicles in the United States over a "similar" engine issue, a spokesperson at the South Korean duo said.
Yonhap News Agency said the U.S. recall, which is currently under discussions with the U.S. National Highway Traffic Safety Administration (NHTSA), would reach some 1.3 million vehicles, which will be close to the duo's annual U.S. sales.
The recall in South Korea covers Hyundai's Sonata, Grandeur sedans and Kia's K5, K7 and Sportage models equipped with a 2-liter or 2.4-liter Theta 2 gasoline engine produced before August 2013, the South Korean transport ministry said.
The ministry said metal debris in crankshafts could cause engine damage, leading to possible engine stalling.
"The recall is related to a manufacturing process problem, not the structural problem of Theta 2GDi engines and we have completed improvements through appropriate measures," the South Korean duo said in a statement.
Hyundai will replace a defective engine with a new one after inspection. The recall will start on May 22.
In 2015, Hyundai Motor said it would recall 470,000 Sonata sedans in the United States to replace faulty engine parts, sparking questions of safety back home.
But Hyundai and Kia has said that engines produced at domestic factories were not defective. They instead extended the warranty period for five Theta 2-equipped models in South Korea.
The Hyundai spokesperson said the latest recall does not involve the same part involved in the previous recall.
Hyundai Motor shares fell 1.4 percent in morning trade, heading for its sixth consecutive days of declines, compared to a broader market that was down 0.4 percent.
Separately, Hyundai and Kia have sharply cut vehicle production in China, sources previously said, as anti-Korean sentiment and competition from Chinese brands play havoc on March sales and threaten earnings.
The recall comes as Hyundai reels from record-low market share in South Korea and sluggish sales in the United States and China.
The two car companies said on Friday they will recall 171,348 vehicles in South Korea because of a manufacturing problem, which leads to possible engine stalling.
The South Korean automakers have also submitted plans to U.S. authorities to recall an unidentified number of vehicles in the United States over a "similar" engine issue, a spokesperson at the South Korean duo said.
Yonhap News Agency said the U.S. recall, which is currently under discussions with the U.S. National Highway Traffic Safety Administration (NHTSA), would reach some 1.3 million vehicles, which will be close to the duo's annual U.S. sales.
The recall in South Korea covers Hyundai's Sonata, Grandeur sedans and Kia's K5, K7 and Sportage models equipped with a 2-liter or 2.4-liter Theta 2 gasoline engine produced before August 2013, the South Korean transport ministry said.
The ministry said metal debris in crankshafts could cause engine damage, leading to possible engine stalling.
"The recall is related to a manufacturing process problem, not the structural problem of Theta 2GDi engines and we have completed improvements through appropriate measures," the South Korean duo said in a statement.
Hyundai will replace a defective engine with a new one after inspection. The recall will start on May 22.
In 2015, Hyundai Motor said it would recall 470,000 Sonata sedans in the United States to replace faulty engine parts, sparking questions of safety back home.
But Hyundai and Kia has said that engines produced at domestic factories were not defective. They instead extended the warranty period for five Theta 2-equipped models in South Korea.
The Hyundai spokesperson said the latest recall does not involve the same part involved in the previous recall.
Hyundai Motor shares fell 1.4 percent in morning trade, heading for its sixth consecutive days of declines, compared to a broader market that was down 0.4 percent.
Separately, Hyundai and Kia have sharply cut vehicle production in China, sources previously said, as anti-Korean sentiment and competition from Chinese brands play havoc on March sales and threaten earnings.
