South Korea orders major Hyundai, Kia recall after whistleblower report
May 17, 2017, 12:53
Hyundai Motor Co and affiliate Kia Motors Corp will recall 240,000 vehicles in South Korea after the government issued a compulsory recall order over safety defects first flagged by a whistleblower.
Responding to media reports alleging that corrupt practises in allocation of land had led KIA Motors to shift to Andhra Pradesh, its said "the whole story is totally baseless and done with an intention only to malign the Government". The transport ministry will also investigate into whether there was any sign of cover-up in the companies.
The move by the ministry came after a former Hyundai employee raised concerns about defects which affected 12 different auto models.
This is published unedited from the IANS feed. These models and others were found to have issues with vacuum pipes, fuel hoses, parking brake light issues and several other faulty parts. It is a blow to Hyundai, which is already reeling from a record-low market share in its home market. "We will continue to work with the ministry in order to assure the authority and all of our customers that Hyundai and Kia vehicles are the safest and best-built products on the road", the statement said. The models affected include the Hyundai's Sonata midsize sedan, the i30 hatchback and, the luxury Genesis.
News reports that the two automakers refused to issue voluntary recalls after claiming that the defects did not compromise safety.
Though KIA Motors is a sister company of Hyundai Motors it operates completely independently and it has its own requirements and business needs including geographical diversification, branding differentiation and supply channels.
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