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Home Cars

Hyundai, Kia flag $2.9 billion earnings hit from ‘Theta” engine quality costs

October 19, 2020
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U.S. safety regulators in 2017 launched an investigation into the recall of nearly 1.7 million vehicles by Hyundai and Kia over an engine defect that increases the risk of a crash. The engines involved were fitted in Hyundai Sonata and Santa Fe vehicles in the U.S., and Kia Optima, Sorento and Sportage models, all of which share the powertrain.

A South Korean whistleblower, who was a former quality official at Hyundai, reported concerns in 2016 to NHTSA, which has started probing whether their recalls covered enough vehicles and were conducted in a timely manner.

Hyundai was being investigated by U.S. prosecutors over whether vehicle recalls were conducted properly, Reuters reported in November 2018.

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