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Hyundai Motor shares slide following U.S. probe of airbag failures

SEOUL — Shares in Hyundai Motor tumbled on Monday on a U.S. probe into why airbags failed to deploy in some of its Sonata sedans, with investors fretting about potential recall costs for the once popular cars. The probe, which follows crashes that reportedly killed four people and left six injured, will review the 2011 Sonata sedan as well as the 2012-2013 Forte made by affiliate Kia Motors, encompassing some 425,000 vehicles. It marks the second investigation by the U.S. National Highway Traffic Safety Administration into the South Korean duo in less than one year, exacerbating headaches for Hyundai which reported in January its worst annual earnings in seven years. Hyundai has issued a recall for more than 150,000 U.S. Sonatas after incidents of non-deployment were linked to electrical overstress in the airbag control unit, but said it did not have a final fix. "What I am concerned about is that the recall will be expanded to other markets," said Ko Tae-bong, an analyst at Hi Investment & Securities. The Sonata and Forte sedans were responsible for driving sales for Hyundai and Kia in key markets in recent years, although they are no longer as popular as they once were. Ko estimated the U.S. recall could cost as much as $575 million if airbags were replaced in 425,000 vehicles under review and the automakers were found responsible for the problem. Hyundai Motor shares tumbled 4.8 percent while Kia Motors lost 3.7 percent. Parts supplier Hyundai Mobis fell 5.4 percent while the broader market was down 0.7 percent. Hyundai declined to comment on whether the recall would be expanded. Kia said it has not confirmed problems with the airbags but added it would "act promptly to conduct a safety recall, if it determines that a recall would be appropriate." The automakers told the South Korean regulator that the Sonata and Forte models sold in the domestic market were not affected, an official at South Korea's transport ministry told Reuters. The U.S. regulator said the airbag control units were built by ZF Friedrichshafen-TRW, a German auto supplier that acquired TRW Automotive in 2015, adding that it would determine if any other manufacturers used similar airbag control units and if they posed a safety risk. The NHTSA also said that electrical overstress appeared to be the root cause in the 2016 recall by Fiat Chrysler America of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.

2021 Kia Stinger facelift caught in the wild in new spy photos [Updated]

(The gallery has been updated to include fresh photos of the 2021 Kia Stinger prototype testing on the Nurburgring.) The 2021 Kia Stinger was caught testing on the roads of Germany this week sporting heavy camouflage to disguise the changes coming in its mid-cycle update.  This prototype is wearing extensive exterior and interior disguise, hinting that both will receive significant updates as part of the 2021 facelift. We can't see much under all of this vinyl and cloth cladding, but the fact that updates are coming at all should be taken as a good sign for Kia's beleaguered rear-wheel drive sedan.  Despite rumors swirling that the large touring fastback is destined to get the axe, stories have leaked suggesting that the 2021 model will get some power upgrades to go with its styling and interior changes. Most have ruled out the possibility of new engines, but the existing turbocharged 2.0-liter and 3.3-liter mills are expected to be tuned for a little more punch.  This will be unwelcome news to those still holding out hope that the 3.5-liter turbocharged V6 from the new Genesis G80 sedan, which delivers 380 horsepower and 391 pound-feet of torque, would make its way under the hood of the Stinger GT. And if you figured the new, 300-horsepower, 2.5-liter turbo-four making its way under the hood of several forthcoming Hyundai and Genesis models would be a shoe-in too, well, the prospects for that seem similarly bleak.  If there's any hope for enthusiasts, it lies in the fact that Hyundai and Kia have shown a stubborn dedication to maintaining production and U.S. distribution of slow-selling halo models such as the Kia K900, which has been a slow seller since its introduction.  Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Stinger Goes West Road Trip | Driving the Kia Stinger GT from Colorado to Oregon

Hyundai and Kia set aside $412 million for false mileage claims

We still don't know how the whole fuel economy ratings debacle is going to play out for Hyundai and Kia, but both automakers are preparing to make good on their promises to reimburse vehicle owners for lower-than-promised mileage figures. According to Automotive News, Hyundai and Kia have set aside a combined total of $412 million ($225 million for Hyundai and $187 million for Kia) as compensation, which will be sent out on a case-by-case basis via debit cards depending on the vehicle and the mileage driven.
Announced back in November, the exaggerated miles per gallon claims affect around 900,000 Kia and Hyundai products produced for the 2011 through 2013 model years sold in the US and Canada. This whole deal has had plenty of action ranging from suspected whistleblowing from a rival US automaker and even insider trading, but it has probably been most frustrating for vehicle owners who, in most cases, saw their vehicles' city and highway ratings drop between one and three digits.