Published: Wed, May 17, 2017
Economy | By Melissa Porter

South Korea orders Hyundai-Kia to recall 240000 vehicles

South Korea orders Hyundai-Kia to recall 240000 vehicles

South Korea ordered Hyundai Motor Co 005380.KS and affiliate Kia Motors Corp 000270.KS to recall 240,000 vehicles over safety defects flagged by a whistleblower - a sharp slap on the wrist that will exacerbate reputational woes for the automakers.

This is the first time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles.

The state government said that Han-Woo Park, CEO and president, Kia Motors had conveyed that they do not establish overseas plant in the same states where the plants of Hyundai Motor Company are located.

The recall results from information provided to the Ministry in September by a Hyundai whistleblower, Gwang-ho Kim.

Last month they said that would recall 1.5 million vehicles over possible engine stalling in South Korea and the US.

This is published unedited from the IANS feed.

The employee has revealed some models have faulty parts, including vacuum pipes, fuel hoses and light issues.

Hyundai and Kia have already incurred heavy losses from recalling cars equipped with defective Theta 2 engines.

The transport ministry later asked the automakers to recall the vehicles over eight of the 32 problems, while offering free repairs on nine cases.

The automakers need to submit a recall plan to the ministry within 25 days.

Kia Motors has adopted a blind-spot warning system as standard for its K9 models and an "around-the-view" monitoring system as an option, the company said in a statement. After investigating 32 vehicle defects leaked a year ago by a whistleblower at Hyundai Motor, the Ministry recommended last month that Hyundai and Kia initiate a voluntary recall for some of the defects.

Though KIA Motors is a sister company of Hyundai Motors it operates completely independently and it has its own requirements and business needs including geographical diversification, branding differentiation and supply channels.

Hyundai and Kia initially rejected the recall, saying that the defects did not affect safety.

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