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Hyundai, Kia to Book Another $2 Billion Hit on Engine Problems

  • Hyundai to set aside 1.3 trillion won; Kia 1.54 trillion won
  • More people then expected claimed for replacement engines
A Hyundai Theta gasoline direct injection (GDI) engine in 2017.
A Hyundai Theta gasoline direct injection (GDI) engine in 2017.Photographer: SeongJoon Cho/Bloomberg

Hyundai Motor Co. and affiliate Kia Corp. will reflect provisions totaling 2.9 trillion won ($2 billion) in their third-quarter earnings as problems relating to their Theta GDI engine continue to weigh on the South Korean automakers. 

Hyundai will set aside 1.3 trillion won and Kia’s cost provision will be 1.54 trillion won, the companies said. That accounts for 44% and 66% of their estimated operating profits for the third quarter, respectively, according to data compiled by Bloomberg.