Hyundai’s $900 Million Recall Shows How Costly EVs Can Be
- Issue highlights risk new rollouts pose to finances and brands
- South Korean automaker is recalling nearly 82,000 vehicles
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Hyundai Motor Co.’s recall of nearly 82,000 electric vehicles highlights how costly the shift to the industry’s new frontier can be for automakers, both to their balance sheets and their brands.
The recall mostly affects Hyundai’s best-selling electric Kona crossover and stems from fire risks in battery cells produced in China by LG Energy Solution Co. It is expected to cost about 1 trillion won ($900 million) and will be reflected in fourth-quarter results, though the final figure will be based on negotiations with LG Energy, the South Korean automaker said Wednesday.