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Hyundai Motor posts big profit miss on U.S. recalls; shares tumble

Hyundai Motor shares tumbling as much as 12 percent Thursday.

A huge earnings miss causing investors to swerve.

Profit down by two thirds to just 236 million dollars.

Its lowest in more than seven years.

Big recalls costing it big money in the US.

440 million dollars to be precise.

But the company has other headaches too.

(SOUNDBITE) (English) REUTERS REPORTER, HYUNJOO JIN, SAYING: "Hyundai gained reputation for its value offering during the 2009 global economicdownturn.

But now it has lost its pricing advantage in its key US market." The South Korean firm can't seem to get it right in the U.S. There it depended on sales of big sedans - missing the trend for SUVs.

Now it's finally catching up.

Hyundai banking on its latest Santa Fe model to turn US sales around.

But they rose just one percent over the third quarter.

Then there's the specter of new tariffs as part of a trade war: The firm predicting a rebound in the fourth quarter.

Though it didn't offer much detail on what might drive an upturn.

And its recall troubles don't seem to be going away.

The US senate planning to grill Hyundai and sister company Kia over the issue.

Safety advocates say the carmakers did too little to tackle engine defects they blame for fatal fires.




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