Hyundai Sonata Gls on 2040-cars

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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.

Judge reduces damages in fatal Hyundai crash to $81M

Hyundai no longer has to pay $248 million as part of a court ruling from a fatal accident in Montana that killed two cousins in a 2005 Tiburon. The judge hearing the appeal revised the amount down to a total of about $81 million. She upheld the original $8.1 million in actual damages but reduced the punitive damages to $73 million from the previous $240 million.
According to Bloomberg, the judge refused Hyundai's desire to reduce the amount even further. She said in her court order that the company showed "an indifference to or reckless disregard of the health and safety of the motoring public."
In the original case, the families' attorneys alleged that the cracking of a faulty steering knuckle caused the fatal accident. Hyundai argued that fireworks had been let off inside the vehicle, which caused the driver to swerve and crash. In a statement released after the ruling, the automaker claimed that evidence supporting its defense was barred from the trial. According to Bloomberg, had the original amount of damages been upheld, it would have been the sixth-highest amount awarded by a jury in the US this year.

Hyundai recalls 2015 and 2016 Sonatas for flying sunroof panels

The Basics: Hyundai is recalling 2015-2016 Hyundai Sonatas and Sonata Hybrids for panoramic sunroofs that could detach while driving. The recall covers a total of 62,811 cars including Sonata Hybrids built from December 8, 2014 to August 18, 2015 and normal Sonatas built from May 28, 2014 to March 18, 2016. The recall only affects cars with panoramic sunroofs. The Problem: Sonatas equipped with the panoramic sunroof have a wind deflector at the front. The anchor that holds the deflector in place is bonded and that bonding can fail. This can lead to the deflector partially detaching, which can interfere with the glass of the sunroof when closing. This interference can result in the glass detaching entirely from the car. Warning signs of this issue are increased noise with the roof open or a sunroof that doesn't fully close. Injuries/Deaths: Hyundai received a complaint of a sunroof detaching, which prompted an internal investigation and this voluntary recall, but no injuries or deaths have been reported. The Fix: Owners of affected cars can bring them to a Hyundai dealer where the vehicle will have new bonding applied to the wind deflector anchor. The repair will be made at no cost to the owner. If you own one: Owners will be notified by Hyundai by mail starting on December 2, and they can also contact Hyundai's customer service to ask about the recall at 1-800-633-5151. Owners can also check their vehicles for recalls by entering their VINs at safercar.gov. Needless to say, don't force the sunroof closed if something doesn't seem right whether you've gotten the notice or not. Better safe than sorry. Related Video: