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Hyundai quality issues hammer quarterly profit report

SEOUL — South Korea's Hyundai said on Monday it swung to a net loss for July-September, missing market estimates by a wide margin, as costs related to engine quality issues and recalls smashed what would otherwise have been strong earnings. Hyundai, the world's fifth-biggest automaker when combined with affiliate Kia, reported a net loss of 336 billion won ($297.72 million). The average of 12 analyst estimates complied by Refinitiv was 1.2 trillion won in profit. The automaker said it booked 2.1 trillion won to cover charges related to engine defects that increased the risk of stalling and fire. The years-long quality problems have cost Hyundai and Kia nearly $5 billion and left the pair subject to a probe by U.S. authorities over the manner of their recalls. "Third-quarter results reflect engine-related provision expenses as the company took preemptive measures to ensure customer safety and cover any possible future increase in quality-related expenses," Hyundai said in a statement. "We sincerely apologize to our shareholders and investors for having repeated quality cost issues over three quarters since 2018," an executive told an earnings briefing. Operating loss for the third quarter was 314 billion won. Excluding quality costs, the figure would have been 1.8 trillion won profit. Revenue rose 2.3% on year to 27.6 trillion won. Analysts said the operating loss was not as deep as expected as Hyundai enjoyed firm sales in the quarter backed by increased demand in the United States and emerging markets such as India. Its stock rose as much as 4.2% after the announcement versus a 0.3% fall in the benchmark KOSPI in afternoon trade. Related Video: Earnings/Financials Hyundai Kia

2017 Kia Cadenza First Drive

"Garbanzo? Costanza? Credenza?" I can't tell if the guy at the bakery is trying to be funny or if he's genuinely forgetting the name of the car – I've told him twice; it's the 2017 Kia Cadenza. But you know, maybe the miscommunication is just fine. Like the Cadenza itself. It's fine. You shouldn't read that negatively. Every now and then in this job, you drive a car and simply come away thinking, "it was fine." And if you're building a car in this particular segment, that's practically the response you hope to elicit. A comfortable jack-of-all-trades at a price that isn't going to bankrupt the owner. Consider the Cadenza's competition: Toyota Avalon, Nissan Maxima, Chevrolet Impala, Buick LaCrosse. These aren't groundbreaking luxury vehicles, masters of utility or fuel economy, or Nurburgring-smashing sports sedans; they're... fine. You almost feel bad saying it – from a very reasonable angle it's a great segment, populated with cars offering a lot of the same equipment and a little more bang for the buck than a full-on luxury sedan, and tending to be roomier, too. And yet it's that dilution of dedicated purpose that keeps these models stagnant in showrooms compared to the more luxurious – and certainly to the more economical. It's hard to raise an eyebrow here. So it goes with the Cadenza. Despite looking a heck of a lot like the previous car, the new Cadenza has been reworked significantly – the use of high-strength steel has doubled, to over 50 percent; the use of hot-stamped steel has tripled; the doors are 16 percent more dent-resistant; the chassis has 35 percent greater torsional rigidity; there's a new subframe (similar to that of the Optima); the front windows are now laminated and there's 13 percent more sound insulation in the A-pillars; there's a full underbody cover and wheel air curtains; it has a new eight-speed transmission – developed in-house; there are 40 fewer pounds of unsprung weight thanks to aluminum parts; the brakes are bigger; and there's a bevy of upscale tech features – but we lost you halfway through that paragraph. The styling is a little sharper than the outgoing model's – it's not going to blow your pants off, but it's hardly a bad-looking car. The updated design features Kia's now-trademark quad-LED setup within the lower front grilles, and the main grille is a concave affair – base models get a "Diamond Butterfly" insert you know from other Kia models, and higher-end Cadenzas get "Intaglio" vertical slats.

Kia plies SEMA attendees with beer and ice cream food trucks

Kia's 2014 SEMA Show theme is "A Day At The Races," and in addition to a very powerful K900 luxury sedan, the company has revealed several vehicles that would make any day at the track more comfortable - and tasty.
The Ballast Point Sedona is a complete about-face for Kia's minivan, turning the family hauler into a beer truck for infield parties. As the name implies, the Sedona features beer on tap from the Ballast Point, a San Diego-based craft brewery. The vehicle also has restaurant-grade stainless steel counters, extra space for kegs and audio speakers integrated into the roof.
After seeing this Sedona, we actually now kinda like the idea of a minivan-based truck model. Are we nuts?