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The Korea Herald
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THE INVESTOR
March 29, 2024

Automobiles

Hyundai’s profit dragged by W200b recall cost

  • PUBLISHED :April 26, 2017 - 18:08
  • UPDATED :April 26, 2017 - 18:08
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[THE INVESTOR] Hyundai Motor on April 26 said it incurred some 200 billion won (US$177.21 million) in recall costs to fix problematic engines, which were reflected in the first quarter profits. 

The nation’s largest automaker said its first-quarter operating profit fell 6.8 percent to 1.25 trillion won on-year, hit by one-time recall expense, as well as sales slump in its all-important Chinese market. Net profit slumped 20.5 percent to 1.41 trillion won in the Jan-March period. The revenue, however, increased 4.5 percent on-year to 23.36 trillion won. 




Earlier this month, Hyundia Motor and Kia Motors announced a recall of around 1.48 million vehicles that are fitted with problematic Theta 2 engines, in the US, Canada and Korea. The recall affects some of the automaker’s popular models, including Hyundai Sonata and Santa Fe, as well as Kia’s K5, K7 and Sportage, that are installed with a Theta 2-liter turbo and 2.4-liter gasoline engine made between July 2009 and August 2013.
 
Hyundai hopes to regain sales momentum by introducing new cars this year. The automaker plans to release Kona compact SUV and G70 sedan of its luxury Genesis brand in the domestic market.

By Ahn Sung-mi (sahn@heraldcorp.com)

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