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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.

US expands probe into ZF-TRW airbag failure-to-deploy to 12.3 million vehicles

DETROIT — U.S. auto safety regulators have expanded an investigation into malfunctioning airbag controls to include 12.3 million vehicles because the bags may not inflate in a crash. The problem could be responsible for as many as eight deaths. Vehicles made by Toyota, Honda, Kia, Hyundai, Mitsubishi and Fiat Chrysler from the 2010 through 2019 model years are included in the probe, which was revealed Tuesday in documents posted by the National Highway Traffic Safety Administration. It involves airbag control units made by ZF-TRW that were installed in the vehicles. The control units can fail in a crash, possibly because of unwanted electrical signals produced by the crash itself that can disable an air bag control circuit housed in the passenger compartment, according to NHTSA documents. The electrical signals can damage the control circuit, the documents say. ZF, a German auto parts maker which acquired TRW Automotive in 2015, said in a statement that it's committed to safety and is cooperating with NHTSA and automakers in the investigation. The case is another in a long list of problems with auto industry airbags, including faulty and potentially deadly Takata airbag inflators. At least 24 people have been killed worldwide and more than 200 injured by the inflators, which can explode with too much force and hurl dangerous shrapnel into the passenger cabin. The inflators touched off the largest series of automotive recalls in U.S. history involving with as many as 70 million inflators to be recalled by the end of next year. About 100 million inflators are to be recalled worldwide. On April 19, NHTSA upgraded the ZF-TRW probe from a preliminary evaluation to an engineering analysis, which is a step closer toward seeking recalls. So far, only Hyundai and Kia and Fiat Chrysler have issued recalls in the case. Four deaths that may have been caused by the problem were reported in Hyundai-Kia vehicles and three in Fiat Chrysler automobiles. NHTSA opened an investigation in March of 2017 involving the TRW parts in Hyundais and Kias. The upgrade came after investigators found two recent serious crashes involving 2018 and 2019 Toyota Corollas in which the airbags did not inflate. One person was killed. Jason Levine, executive director of the Center for Auto Safety, a nonprofit consumer group, said the ZF-TRW case shows the auto industry thus far has learned very little from Takata.

Hyundai plans to catch up with other automakers, offer EVs

YONGIN, South Korea (Reuters) - South Korea's Hyundai Motor Co is developing its first dedicated architecture for electric vehicles, seeking to catch up with the likes of Tesla in the growing segment with multiple, long-range models. While the platform will not be completed soon, Hyundai Motor and affiliate Kia plan to roll out small electric sport utility vehicles (SUVs) based on an existing underpinning next year, said Lee Ki-sang, who leads Hyundai-Kia's green cars operations. Hyundai will launch an electric SUV, followed by a sibling model by Kia Motors next year, Lee said, citing strong demand for SUVs. The subcompact or compact models would have a range of more than 300 km (186 miles) per charge, and would be "more competitive" than rival offerings, Lee said. And Hyundai said in a statement on Thursday that it plans to launch a new luxury electric vehicle under its Genesis marque in 2021, after introducing a plug-in hybrid version of an unidentified Genesis model in 2019. The separate platform represents a major push into the battery electric-car segment for a firm which has long trumpeted rival fuel-cell vehicles, reflecting strong investor pressure to compete more vigorously in a market that has been stimulated by U.S.-based Tesla's longer-range models. And tough fuel-economy and emissions regulations in the United States, Europe and China are compelling automakers to push fuel-efficient cars even though low oil prices have undercut demand. Hyundai's electric-car platform would allow the automaker to install a battery pack in vehicle floors to accommodate more battery capacity and maximize cabin space, Lee said. "The electric-vehicle platform will require high up-front investments, but we are doing this to prepare for the future," he said at Hyundai-Kia's green car research center in the city of Yongin, outside Seoul. He did not reveal the cost. Lee, a senior vice-president at Hyundai Motor, was speaking during an interview on the eve of an auto show that kicked off in Seoul on Thursday. Analysts said Hyundai had no choice but to build separate electric-vehicle platforms to be relevant in the segment. "The separate platform may incur losses initially, but Hyundai will be left behind the market if they don't offer long-distance models, like 300 km, 500 km and 600 km," said Ko Tae-bong, an analyst at Hi Investment & Securities.