'Kia Motors chose Andhra due to Hyundai presence in TN'

by Ben Pena May 17, 2017, 13:02
'Kia Motors chose Andhra due to Hyundai presence in TN'

Hyundai (KRX:005389) and its affiliate Kia (KRX:000270) said on Friday they were ordered to recall 240,000 of their vehicles after a whistleblower raised safety issues with the cars. This came after a tip off from a whistleblower. But Hyundai and Kia earlier rejected calls for a voluntary recall related to five defects, saying the defects did not compromise driving safety.

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.

As previously publicly reported by the Ministry, the defects include faulty brake vacuum lines and possible defects in wheel lugnut assemblies, parking-brake alert signal systems, engine control canisters and fuel lines.

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

The ex-Hyundai employee raised concern about defects which affected 12 different vehicle models.

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"This is negative for Hyundai's brand image after the hit from the recall over engine issue last month".

"Safety is always Hyundai's No.1 priority, and we make decisions on recalls or any other customer-protection steps in compliance with regulators around the world, and follow stringent internal procedures". A former employee of Hyundai Motor had tipped off the ministry and local reporters about 32 defects in vehicles made by both companies. The ministry also asked the prosecutor to investigate whether or not the automakers allegedly covered up the defects, which affect 12 models, including the Elantra, Sonata, Santa Fe and Genesis.

Noting that the company undertook a "feasibility study" to set up plant outside Korea, the release quoting KIA Motors CEO and President, Han-Woo Park said he expressed "regret" for not able to consider Tamil Nadu "due to business needs and requirements of the company".

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


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