Hyundai Motor and Kia Motors are going to recall 1.48 million vehicles in the United States, Canada and South Korea because of engine problems, the recent blow for two companies already having a hard time in crucial markets.
The recall might cost the two companies hundreds of millions of dollars each revives quality issues at a time when Hyundai and Kia deal with a sharp drop in China sales and slow demand in the United States and South Korea.
The South Korean companies are recalling about 1.19 million cars and sport utility vehicles in the United States, 114,187 in Canada and 171,348 in South Korea because of the engine problem that increases the danger of accident, according to safety regulators in these nations.
The United States recall includes Hyundai’s Sonata and Santa Fe and Kia’s Optima, Sorento and Sportage.
The recall could strike revenues with the recall costing each company as much as 250 billion won ($220.19 million), stated Koh Tae-bong, an analyst at Hi Investment & Securities.
The companies refused to discuss the expense of the recall.