Hyundai will fix its engines for several billion dollarsOctober 20, 2020
Hyundai Motor will write off losses of almost $ 3 billion at a time, of which $ 1.8 billion falls on Hyundai, another $ 1.1 billion – on Kia. The losses are associated with the cost of fixing defective motors and paying compensation to consumers.
In 2015 and 2017, Hyundai and Kia recalled nearly 1.7 million vehicles in one of the largest campaigns in the United States. The reason was a possible failure of the internal combustion engine, which increases the risk of accidents.
As previously reported, the Theta II GDI 2.0 and 2.4 liter gasoline engines could fail while the car was moving due to a defect in the crankshaft and bearings. At the same time, the Korean company then stated that the problem was not in the design itself, but in production violations.
So, in the area of the crankshaft, metal debris remained due to poor-quality machining. This led to problems with the oil flow. The shavings interfered with the passage of lubricant through the connecting rod bearings and damaged the connecting rods.
In 2017, U.S. security regulators began to investigate whether enough vehicles were recalled and how timely. This follows an appeal by a former Hyundai quality officer to the US National Highway Traffic Safety Administration (NHTSA).
In 2018, Reuters reported that the US Attorney’s Office is investigating Hyundai for the correct recall of vehicles.
The Theta II GDI has a higher replacement rate than previously estimated, Hyundai said. This means that the manufacturer has to spend more money and time fixing their mistakes.
Against the background of the news of additional spending, Hyundai shares fell 2.3%, Kia – 1%, according to Reuters.
The Theta II GDI engine recall applies mainly to the US and South Korean markets. Initially, the company’s position regarding Russia was that such engines were not supplied to us (at that time, cars were sold only with distributed injection). However, after the start of sales of cars with Theta II GDI, the rhetoric has changed: supposedly in our country not a single such case has been recorded, so there is no need to recall it.
Theta II GDI engines are used in the Hyundai Santa Fe, Kia Sorento and Kia Optima, among others.
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