Hyundai and Kia warn of $2.9 billion hit to earnings over quality woes


Hyundai Motor and affiliate Kia Motors warned of a fresh $2.9 billion provision expense related to engine issues, after years-long quality problems that have tarnished the credibility of the South Korean automakers.

Hyundai Motor Group said on Monday their third-quarter earnings would reflect quality-related costs of a combined 3.36 trillion won ($2.94 billion), of which Hyundai accounted for 2.1 trillion and Kia for 1.26 trillion.

The latest provisions reflect higher-than-expected replacement rates for Theta II GDI engines of old vehicles subject to recalls, as well as growing consumer complaints over other engines not subject to recalls, Hyundai said.

Hyundai and Kia, together the world’s Number....READ MORE HERE