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Hyundai, Kia add to 2.4 million cars recalled in U.S. over fires, engines

DETROIT — Hyundai and Kia have added more than a half-million vehicles to 3 1/2 -year string of U.S. recalls for engine failures and fires. Three recalls released Thursday by the government add new problems and vehicles to the Korean automakers' list of safety woes, which have brought hundreds of complaints about fires from across the nation. The companies have now recalled nearly 2.4 million vehicles for fire and engine failure problems since September 2015, and they are under investigation by the National Highway Traffic Safety Administration for potentially being slow to fix faulty vehicles. In addition, the companies are doing a "product improvement campaign" covering another 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed "limp" mode if problems are detected. The largest of three recalls posted on the National Highway Traffic Safety Administration website Thursday covers nearly 379,000 Kia Soul small SUVs from 2012 through 2016 with 1.6-liter engines. Documents show that high exhaust gas temperatures can damage the catalytic converters, which control pollution. That can cause abnormal combustion and damage pistons and connecting rods. A failed connecting rod can pierce the engine block and cause oil leaks that can cause fires. In addition, Hyundai and Kia are recalling 152,000 Tuscon SUVs from 2011 to 2013 and Sportage SUVs from 2011 and 2012 to fix an engine oil pan leak that also can cause fires. Documents show that Kia had been investigating fires in Souls after the nonprofit Center for Auto Safety petitioned the government to look into the fires last year. In November, the automaker couldn't find any safety problem trends but it kept monitoring repair data and found the problem with the catalytic converters. All Souls with 1.6-liter engines made from July 8, 2011, through August 11, 2016, are being recalled. Dealers will replace a computer that prevents the catalytic converter from overheating. They'll also replace the catalytic converter and the engine if they have been damaged. Letters will be mailed to owners starting April 12. In the Tuscon and Sportage recalls, the fix for the oil pan problem is still being developed. Hyundai owners will be notified starting March 29, while Kia owners will get letters starting April 10.

Hyundai reportedly eyeing a takeover of FCA

The CEO of Hyundai Motor Group plans to launch a takeover bid for Fiat Chrysler ahead of the planned retirement of FCA Chief Executive Sergio Marchionne next spring, Asia Times reports, citing unnamed sources close the situation. CEO Chung Mong-koo will wait for an expected decline in the Italian-American automaker's shares to make his move. Hyundai isn't commenting on the rumors, unsurprisingly, but would presumably stand to benefit by gaining Chrysler's dealer network and the lucrative Jeep brand and probably Ram, too. An FCA spokeswoman in Auburn Hills told Autoblog the company had no comment. But like any story about a possible takeover, this one gets complicated with inside players — and President Trump's posturing on international trade issues. FCA has been the subject of takeover interest before, including by Hyundai, but Marchionne has denied a merger was likely, instead saying his company was in talks with the Korean automaker about a technical partnership. In 2015, Marchionne lobbied General Motors hard, but unsuccessfully, for a tie-up; he was also spurned by Volkswagen. Marchionne had repeatedly stressed the need for car companies to merge to decrease overcapacity and better afford the massive investments needed for things like autonomous and electric vehicles. In the case of Hyundai's reported interest, there is a cast of characters. One is Paul Singer, principal of the hedge fund Elliott Management, an activist shareholder with a $1 billion stake in Hyundai and a major owner of equities in Fiat's home turf of Italy. Then there is FCA Chairman John Elkann, who reportedly disagrees with Marchionne on a successor as CEO of Fiat Chrysler but has little interest in running the company himself and would prefer a merger. Compounding things is what the Trump administration would think of a further blending of Fiat Chrysler's international DNA, though a deal with a Korean automaker is thought to be more palatable to the president and members of Congress than by a Chinese conglomerate like Great Wall Motor, which has confirmed its interest in taking over all or parts of FCA. The full Asia Times piece is here. Related Video: News Source: Asia TimesImage Credit: REUTERS/Rebecca Cook Chrysler Fiat Hyundai Jeep RAM Sergio Marchionne FCA merger takeover

Woman executive of South Korea's Hyundai Motor resigns amid #MeToo wave

SEOUL — A female executive of South Korean automaker Hyundai Motor has resigned after being accused of pressuring female subordinates to pour drinks for, and dance with, senior male members of staff, the Yonhap news agency said on Tuesday. The global #MeToo movement has accelerated in South Korea since January, spawning accusations of sexual misconduct and prosecution investigations of prominent figures. Fear of reprisal has made South Koreans traditionally wary of being whistleblowers over harassment at family-run conglomerates that dominate the economy, with open accusations of this type far outnumbered by anonymous posts on the subject. Yonhap, citing Hyundai Motor, said a female employee had made the accusation while preparing to leave the company, saying the woman executive had pressured her female subordinates to attend a drinking party with senior men and pour drinks. She also accused the executive of pressuring the women to dance with men at a karaoke session, and said the men were in positions that could influence the female executive's position in the corporation, Yonhap reported. In a statement, Hyundai Motor said media reports on the issue did not reflect its views and policies. "We will take appropriate actions on any irregularities or breaches by individuals within the company that do not ensure equality in the workplace," it said, declining further comment. Neither Hyundai Motor nor the news agency identified the executive. Hyundai Motor had three female executives among its total of 298 executives by the end of 2017, regulatory filings show. Reporting by Joyce Lee.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: REUTERS/Kim Hong-Ji Government/Legal Hirings/Firings/Layoffs Hyundai resignation