Hyundai Motors and KIA said they will be recalling 1.5million cars in United States and South Korea over engine related issues.
Image credit: Reuters.
According to reports, the two auto auto industries filed a recall of 1.3 million vehicles due to engine defect that will cause them to stall after the companies experienced a sharp drop in China sales and a poor demand in South Korea and United States.
Listed in the cars to be recalled includes Hyundai’s Sonata and Santa Fe and Kia’s Optima, Sorento and Sportage.
Koh Tae-bong, an analyst at Hi Investment and Securities said the recall could hit earnings with the recall costing each company as much as 250 billion won ($220.19 million).
This is not the first time Hyundai and Kia have been forced to recall vehicles due to defects in their Theta engines, which they manufacture themselves.
In 2015, Hyundai Motor recalled 470,000 Sonata sedans in the United States to replace faulty engine parts.
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