Hyundai Motor to Recall Sonata Sedans in U.S. Over Steering
Hyundai Motor to Recall Sonata Sedans in U.S.
Seokyong Lee/Bloomberg
Hyundai Motor Co.'s Sonata sedan.
Hyundai Motor Co.'s Sonata sedan. Photographer: Seokyong Lee/Bloomberg
Sept. 27 (Bloomberg) -- Bloomberg's Betty Liu reports on the latest breaking news and top stories in today's Business Briefs. (Source: Bloomberg)
Sept. 16 (Bloomberg) -- John Krafcik, chief executive officer of Hyundai Motor Co., talks about his company's strategy and outlook for sales. Hyundai’s U.S. sales increased 17 percent in the first eight months of the year, led by demand for the revamped midsize Sonata sedan. (Source: Bloomberg)
Hyundai Motor Co. will recall about 139,500 cars in the U.S. because of steering issues that could result in a loss of or reduction in maneuvering capability, amid increased attention to quality among automakers.
Model year 2011 Sonata sedans manufactured between Dec. 11, 2009, and Sept. 10, 2010, are subject to the plan, the U.S. National Highway Traffic Safety Administration said in a statement on its website. Hyundai Motor America informed the agency it is voluntarily initiating a safety recall of Sonata sedans to inspect the steering issues, South Korea’s biggest automaker said in an e-mailed statement yesterday.
“It’s a recall of Hyundai’s flagship model in the flagship market, so investors will monitor how it proceeds,” said Kang Sang Min, a Seoul-based analyst at Hanwha Securities Co. “A voluntary recall with no case of accident usually gives an impression that the company cares about safety.”
The move comes as Toyota Motor Corp., the world’s largest carmaker, recalled more than 8 million vehicles worldwide in the past year for defects including gas pedals that stuck or snagged on floor mats. Toyota dropped out of the top 10 global brands ranked annually by consulting company Interbrand after the recalls.
Hyundai Motor closed unchanged at 161,500 won on the Korea Exchange today, while the benchmark Kospi stock index rose 0.8 percent.
Kia Recall
Hyundai Motor said there were fewer than 10 vehicles with steering problems and no accidents or injuries have occurred as a result of the condition. The automaker, based in Seoul, is expected to begin the recall in October, according to the U.S. agency, which opened a preliminary probe into steering problems with the model in August.
Kia Motors Corp., an affiliate of Hyundai Motor, this month said Jeong Sung Eun resigned as vice chairman to take responsibility for the recent recall of four models. Kia began recalling about 104,000 cars worldwide earlier this month because of a wiring problem that can cause fires.
Hyundai’s U.S. sales rose 17 percent in the first eight months of the year, led by demand for the revamped midsize Sonata and new Tucson crossover vehicle. The growth is more than double the 8.4 percent increase in industrywide deliveries through August, according to Woodcliff Lake, New Jersey-based Autodata Corp.
Hyundai’s full-year U.S. sales in 2010 should finally surpass its long-time target of 500,000 units, and the company may set an “all-time record” for U.S. sales in September thanks to demand for its Sonata sedan, John Krafcik, the company’s U.S. chief executive officer, said in a Sept. 16 Bloomberg Television interview.
To contact the reporter on this story: Sookyung Seo in Seoul at sseo10@bloomberg.net
To contact the editor responsible for this story: Paul Tighe at ptighe@bloomberg.net
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