Stocks

Hyundai Motor to replace battery systems in costly electric car recall By Reuters

© Reuters. FILE PHOTO: Bangkok International Motor Show

By Heekyong Yang and Joyce Lee

SEOUL (Reuters) – Hyundai Motor Co will replace battery systems in some 82,000 electric vehicles globally due to fire risks, a problem which combined with an earlier recall is likely to cost the automaker an estimated $900 million.

Most of the latest recall applies to its best-selling electric car, the Kona EV, which was first recalled in October for a software upgrade after a series of fires.

But in January, one of the recalled vehicles caught fire and South Korean authorities launched a probe into whether the first recall had been adequate.

LG Energy Solution, a division of LG Chem Ltd which manufactures the batteries, said in a statement that Hyundai Motor has misapplied LG’s suggestion for fast-charging logic in Hyundai’s battery management system and that the battery cell should not be seen as the direct cause of the fire risks.

The new recall applies to roughly 76,000 Kona EVs as well as some Ioniq EV and Elec City models.

There have been some 15 cases of fires involving the Kona EV – 11 in South Korea, two in Canada and one each in Finland and Austria, according to the transport ministry.

Hyundai said in a statement that of the total 1 trillion won in estimated recall costs, some 38.9 billion won was due to the first recall.

Shares of Hyundai Motor and LG Chem were trading down 3.7% and 1.9% respectively in afternoon trade compared to a 2% fall for the broader market.

($1 = 1,111.7900 won)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

Your Donation
Details

Source link

Back to top button