South Korea Forces Hyundai/Kia Recall after WhistleBlower
05-12-17, 04:08 AM
#1
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South Korea Forces Hyundai/Kia Recall after WhistleBlower
http://www.autonews.com/article/20170512/COPY01/305129967/hyundai-kia-ordered-by-s-korea-to-recall-vehicles-after
Hyundai, Kia ordered by S. Korea to recall vehicles after whistleblower report
May 12, 2017 @ 3:27 am
SEOUL -- Hyundai Motor Co. and affiliate Kia Motors Corp. said on Friday they will recall 240,000 vehicles in South Korea after the government issued a compulsory recall order over safety defects 1st flagged by a whistleblower.
The recall will affect 12 models, including the Elantra, Sonata, Santa Fe and Genesis.
This is the 1st time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles. It is a blow to Hyundai, which is already reeling from a record-low market share in its home market.
The ministry also asked prosecutors in Seoul to investigate whether the automakers allegedly covered up the 5 flaws found in the vehicles.
The planned recalls will add to the 1.5 million vehicles that Hyundai and Kia last month offered to fix in South Korea and the United States over possible engine stalling - a defect which was also flagged by 26-year-old Hyundai engineer Kim Gwang-ho who last year had reported vehicle defects to the safety regulators in the two countries.
The ministry later asked the automakers to recall the vehicles over eight of the 32 problems reported by Kim. But Hyundai and Kia earlier rejected calls for a voluntary recall related to five defects, saying the defects did not compromise driving safety.
On Friday, Hyundai and Kia said in a joint statement they "accept the administrative order", adding: "There have been no reported injuries or accidents from the cited issues."
Hyunjoo Jin
Reuters0
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Hyundai and Kia's South Korean recall will affect 12 models, including the Hyundai Santa Fe SUV.
Send us a LetterSEOUL -- Hyundai Motor Co. and affiliate Kia Motors Corp. said on Friday they will recall 240,000 vehicles in South Korea after the government issued a compulsory recall order over safety defects 1st flagged by a whistleblower.
The recall will affect 12 models, including the Elantra, Sonata, Santa Fe and Genesis.
This is the 1st time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles. It is a blow to Hyundai, which is already reeling from a record-low market share in its home market.
The ministry also asked prosecutors in Seoul to investigate whether the automakers allegedly covered up the 5 flaws found in the vehicles.
The planned recalls will add to the 1.5 million vehicles that Hyundai and Kia last month offered to fix in South Korea and the United States over possible engine stalling - a defect which was also flagged by 26-year-old Hyundai engineer Kim Gwang-ho who last year had reported vehicle defects to the safety regulators in the two countries.
The ministry later asked the automakers to recall the vehicles over eight of the 32 problems reported by Kim. But Hyundai and Kia earlier rejected calls for a voluntary recall related to five defects, saying the defects did not compromise driving safety.
On Friday, Hyundai and Kia said in a joint statement they "accept the administrative order", adding: "There have been no reported injuries or accidents from the cited issues."
05-12-17, 06:16 AM
#2
Lexus Champion
I was curious what the defects were but they were not listed in the original posting.
Source: Reuters
Source: BBC
They added there had been no reports of injuries or accidents due to the problems which include defects in parking brake warning lights, and denied that there had been any cover-up.
...
"What the whistleblower said turned out to be true," said Samsung Securities auto analyst Eim Eun-young.
"This is negative for Hyundai's brand image after the hit from the recall over engine issue last month. But then, its reputation is already seen at the rock bottom in South Korea, so I am not sure whether there is a room for a further fall."
Hyundai and Kia are the dominant brands in their home country with around two thirds of the market. However, customer ire has grown due to the perception South Korean automakers are not working swiftly to address quality concerns.
Hyundai's recall for the engine problem was made in South Korea only last month - one year after it recalled cars for the similar engine issue in the United States.
...
"What the whistleblower said turned out to be true," said Samsung Securities auto analyst Eim Eun-young.
"This is negative for Hyundai's brand image after the hit from the recall over engine issue last month. But then, its reputation is already seen at the rock bottom in South Korea, so I am not sure whether there is a room for a further fall."
Hyundai and Kia are the dominant brands in their home country with around two thirds of the market. However, customer ire has grown due to the perception South Korean automakers are not working swiftly to address quality concerns.
Hyundai's recall for the engine problem was made in South Korea only last month - one year after it recalled cars for the similar engine issue in the United States.
The South Korean government has ordered carmakers Hyundai and Kia Motors to recall about 240,000 cars, after a tip off from a whistleblower.
The ex-Hyundai employee raised concern about defects which affected 12 different car models.
It is the first time the country's transport ministry has issued a compulsory vehicle recall.
Hyundai and Kia had earlier refused to act voluntarily, saying there was no safety risk.
Kia is an affiliate of Hyundai, and officials are reportedly asking the country's prosecutor to look for any evidence of a cover up at the carmakers.
The models affected include Hyundai's i30 hatchback, its Sonata midsize sedan, the luxury Genesis and Kia's Mohave as well as its Carnival minivan. These models and others were found to have issues with vacuum pipes, fuel hoses, parking brake light issues and several other faulty parts.
The planned recalls will add to the 1.5 million cars which Hyundai and Kia offered to fix last month in South Korea and the US over possible engine stalling.
In a statement Hyundai Motor said it accepted and respected the recall, but that there had been no "reported injuries or accidents from the cited issues".
"Safety is always Hyundai-Kia's number one priority and we make decisions on recalls or any other customer protection steps in compliance with regulators around the world and stringent internal procedures."
The ex-Hyundai employee raised concern about defects which affected 12 different car models.
It is the first time the country's transport ministry has issued a compulsory vehicle recall.
Hyundai and Kia had earlier refused to act voluntarily, saying there was no safety risk.
Kia is an affiliate of Hyundai, and officials are reportedly asking the country's prosecutor to look for any evidence of a cover up at the carmakers.
The models affected include Hyundai's i30 hatchback, its Sonata midsize sedan, the luxury Genesis and Kia's Mohave as well as its Carnival minivan. These models and others were found to have issues with vacuum pipes, fuel hoses, parking brake light issues and several other faulty parts.
The planned recalls will add to the 1.5 million cars which Hyundai and Kia offered to fix last month in South Korea and the US over possible engine stalling.
In a statement Hyundai Motor said it accepted and respected the recall, but that there had been no "reported injuries or accidents from the cited issues".
"Safety is always Hyundai-Kia's number one priority and we make decisions on recalls or any other customer protection steps in compliance with regulators around the world and stringent internal procedures."
05-12-17, 06:28 AM
#3
Lexus Fanatic
I wonder if Hyundai and Kia use two different quality-control standards for American-spec vehicles and those in their own home market. 
Most of their products I see, inspect, and test-drive in the U.S. are built like Swiss Watches, with excellent hardware....in fact, in that area, IMO, they out do much of their competition. My brother has become a dyed-in-the-wool Kia fan, after a Soul and two Sportages. He's had excellent luck, so far, with all three...but the third one is still new.
Most of their products I see, inspect, and test-drive in the U.S. are built like Swiss Watches, with excellent hardware....in fact, in that area, IMO, they out do much of their competition. My brother has become a dyed-in-the-wool Kia fan, after a Soul and two Sportages. He's had excellent luck, so far, with all three...but the third one is still new.
05-12-17, 09:20 AM
#4
dang, so I guess none of the higher ups listened to the 26 y/o engineer-sounds about right in large corporations. I'm curious to know his side of the story and how dire these defects truly are, if Kia/Hyundai are stating no safety risks. I'm sure the gravity of it may have more severe since the engineer had reported it to his countries government.
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