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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

Hyundai Kona crossover factory grinds to a halt ahead of U.S. launch

SEOUL — Hyundai workers in South Korea have stopped building the Kona sport utility vehicle this week ahead of its U.S. launch at the L.A. Auto Show — a protest against what the automaker's labor union says are plans to trim assembly-line headcount. The union, which is also in annual talks with management over pay, warned that a wider strike was possible. Hyundai has been in discussions with its labor union since October on production plans for the Kona, a key model that it hopes will reverse a U.S. sales slump. The union contends that the automaker wants to introduce more automation and outsource more assembly of key sections to part makers — plans that it is vehemently opposed to. Hyundai management argues that the union is making "irrelevant demands" such as requests for extra windows in the factory as part of the production discussions. The automaker's decision to start production of the Kona on a new assembly line was made without consultation with the union and was unacceptable, union leader Ha Boo-young said in a statement, adding that a wider strike was possible "should there be another provocation by management." The move comes ahead of a planned unveiling of the U.S.-production version of the Kona at the Los Angeles Auto Show on Wednesday, with U.S. sales slated to begin early next year. The Kona is currently sold in South Korea, where it has proven to be a popular model, as well as Europe. The two days loss of production so far this week is equivalent to 1,230 vehicles, Hyundai said. Hyundai Motor President Yoon Kap-han said it was regrettable that the labor union was disrupting production for a high-demand model at a time when most of its plants were "suffering from the worst sales slowdown." Hyundai Motor's global sales fell 6 percent from January to September compared with the same period a year earlier, as a limited number of SUV models hurt sales in the U.S. market and a diplomatic row between Seoul and Beijing hurt sales in China. Reporting by Hyunjoo JinRelated Video: Featured Gallery 2018 Hyundai Kona: LA 2017 View 13 Photos Related Gallery 2018 Hyundai Kona View 20 Photos Image Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com Plants/Manufacturing LA Auto Show Hyundai Crossover SUV 2017 LA Auto Show autoworkers

U.S. Senate panel wants Hyundai, Kia to testify about engine fires

WASHINGTON — The Senate Commerce Committee's Republican chairman and ranking Democrat said on Wednesday they had asked top U.S. executives at Hyundai and Kia to testify at a Nov. 14 hearing on reports of engine fires involving vehicles from the Korean automakers. The call to testify comes after safety advocates raised concerns about fires in vehicles not involved in collisions. The nonprofit consumer advocacy group Center for Auto Safety said last week that 103 fire complaints had been filed with U.S. safety regulators since June 12 and urged an immediate recall of nearly 3 million vehicles. Hyundai said in a statement it had received the request to appear "and is currently reviewing it." The company added it "actively monitors and evaluates potential safety concerns, including non-collision fires, with all of its vehicles and acts swiftly to recall any vehicles with safety-related defects." Kia did not comment. Shares of Hyundai Motor fell as much as 3.8 percent in Seoul trading on Thursday. Kia Motors stock also slid 3.7 percent, while the wider market was down 0.6 percent as of 0232 GMT. In May 2017, the National Highway Traffic Safety Administration (NHTSA), an agency of the U.S. Department of Transportation, opened a formal investigation into the recall of nearly 1.7 million Hyundai and Kia vehicles over engine defects. A South Korean whistleblower in 2016 reported concerns to NHTSA, which has been probing the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Sen. Bill Nelson, the top Democrat on the Commerce Committee, said a non-collision fire death had been reported last year in a 2014 Kia Soul. "We've got to get to the bottom of what's causing these fires," Nelson said in a statement Wednesday. "Car owners need to know if their vehicles are safe." The letter to the automakers, also signed by Sen. John Thune, who chairs the committee, said the hearing will also "examine efforts to mitigate vehicle fires and promptly identify and respond to defects that may pose a fire risk" and invites the chief executives of Hyundai and Kia's U.S. units to testify or their designee. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. In March 2017, Hyundai expanded its original U.S.