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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.

Kia Niro hybrid and PHEV refreshed with Niro EV's looks and tech for Geneva

Two years ago, Kia unveiled the Niro hybrid at the Geneva Motor Show. This year, Kia will bring updated versions of the Niro hybrid and PHEV to Geneva, putting the battery electric crossovers under the influence of the Niro EV. The powertrains don't change, but the looks do. New projector headlights adopt what Kia calls its "ice cube" design above a new bumper. The DRLs turn into double arrows beneath, mimicking the single arrow DRL on the Niro EV. LED fog lights are optional. In back, new LED taillights pair with new light reflectors and rear fog lamps that sit between a silver skid plate. Two new 16-inch wheel designs will be standard fit, a new 18-inch wheel on the options sheet. The interior get a serious spruce in color and technology, especially with the optional color packs. A soft-touch coating covers the instrument panel, gloss black or satin chrome highlight the rest of the cabin. Paddle shifters for the six-speed double-clutch have been grafted onto the steering wheel. The handbrake lever gives way to an electronic parking brake, and there are larger rear brake discs. Depending on market, Kia will offer Red-Orange or Plum color packs. The former merely splashes hues about the cabin, as in the red contrast stitching and red-orange dash trim. Plum turns the interior fruity, adding perforated plum-colored leather to the seats, "warm purple stitching," and a plum armrest on the doors. Standard digital touches include a 4.2-inch TFT screen in the binnacle, and an eight-inch infotainment screen. The optional system installs a seven-inch TFT panel in the binnacle and a 10.25-inch TFT infotainment window. That upgraded spec will run Kia's new Uvo Connect, which uses a SIM card to retrieve and update live data. The lengthy list of driver assistance and safety features Kia's known for welcomes two optional features. The new adaptive cruise control adds a stop and go function, able to restart on its own after stopping in traffic. Lane Following Assist will follow the vehicle in front. Related Video:

Hyundai and Kia to hit record 8M sales for 2014

Hyundai and Kia are on a sales charge in 2014, and parent company Hyundai Motor Group is increasing projections to a record eight million combined units for the automakers by the end of the year – a bump over the original target of 7.86 million vehicles. According to Bloomberg, the key to the growth is beating expectations in Brazil, China and India, and strong crossover sales are also helping the bottom line. In the US, both automakers are doing well this year. In October, Hyundai saw a six percent dip in monthly sales, but through the first 10 months it sold 607,539 vehicles, compared to 601,773 at this point last year. Kia has done even better with 489,711 units sold from January to October, versus 456,137 for the period in 2013. The good news is a welcome antidote to negative headlines like investors' anger over Hyundai's $10 billion land purchase in Seoul, South Korea. The two automakers also had to pay a $300 million penalty to the Environmental Protection Agency for misstating fuel economy on some models. While sales may reach a new record, profits might not grow as much with them. The strong Korean won means that Hyundai and Kia have a tougher time keeping up profit margins compared to Japanese competitors with a weaker yen.