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Kia recalls 507,000 vehicles in U.S. for airbag issues

WASHINGTON — Kia Motors Corp said on Friday it was recalling more than 507,000 vehicles in the United States because an electronic glitch may prevent airbags from deploying in a crash. The recall follows an announcement in March by the National Highway Traffic Safety Administration (NHTSA) that it was investigating why some airbags had failed to deploy in Kia vehicles and its affiliate Hyundai after crashes in which four people were killed and another six were injured. The two Korean automakers have now recalled nearly 1.1 million U.S. vehicles to address the issue. NHTSA said in March that it was aware of six serious crashes in which airbags failed to deploy in frontal crashes, including four in 2011 model Hyundai Sonatas and two in 2012 and 2013 Kia Forte vehicles. The crash of the 2013 Forte occurred in Canada. Kia's recall issued on Friday covers 2010-2013 Kia Fortes, 2011-2013 Kia Optimas and 2011-2012 Kia Optima Hybrid and Sedona vehicles. The company said the airbag control unit may short circuit because they may be susceptible to electrical overstress, preventing the frontal airbags and seat belt pretensioners, which pull the driver and front seat passenger firmly back into their seats, from deploying. The company said it does not yet have a fix, but is working with its supplier on the issue. Kia spokesman James Bell said the company "is attempting to have a remedy by the scheduled owner notification date of July 27. If Kia does not have a remedy by that date or if any customer feels unsafe in his/her vehicle, we will provide a rental car until the repair has been completed." Hyundai in February issued a recall for 154,000 U.S. Sonatas after non-deployment reports were linked to electrical overstress in the air bag control unit. In April, Hyundai recalled an additional 425,000 U.S. vehicles to address the same issue. Hyundai said in March that it was aware of reports of two deaths in its vehicles, which occurred in head-on collisions at extremely high rates of speed. NHTSA said the airbag control module under investigation was built by ZF Friedrichshafen AG, a German auto supplier. ZF said on Friday that it has worked with Kia and "continues to cooperate and support NHTSA and its customers in the investigation." The safety agency also said that electrical overstress appeared to be the root cause in a 2016 recall by Fiat Chrysler Automobiles NV of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.

How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.

Hyundai to recall 27,500 Genesis sedans over brake issue

Following an investigation launched by the National Highway Traffic Safety Administration earlier this week, Hyundai will reportedly recall 27,500 Genesis sedans due to braking problems. Roughly 40,000 Genesis sedans from the 2009 model year were originally under investigation, but this official recall affects vehicles from 2009 to 2012.
A Hyundai spokesperson told The New York Times that brake fluid may cause the brake control unit valves to corrode, which reduces braking power. Affected cars will have their brake fluid replaced, and if necessary, will have the control unit replaced, as well.
The original NHTSA investigation was launched after the government agency received 23 complaints from owners citing reduced braking power and increased pedal travel. One incident reportedly resulted in a crash, while another caused a driver to lose control of the car. NHTSA has not officially announced the recall as of this writing.