Hyundai Motors, and its subsidiary Kia, announced that they will reflect allocations worth 2 trillion Won ($ 2 billion) in the profits of the third quarter of 2022 to face problems related to the Theet GDI engine, which has a great impact on the South Korean auto industry.
According to the two businesses, Kia’s costs will be 1.54 trillion Won and Hyundai’s budget will be 1. 3 trillion Won.
According to figures from Bloomberg, this accounts for 44% and 66% of the anticipated operational earnings for the third quarter.
Hyundai and Kia summoned up to 1. 2 million cars in the United States in 2017 due to engine problems, with 3. 36 trillion Won allocated in the allocations in 2020 due to the costs related to the settlement of 2019 for a collective lawsuit filed by American drivers due to allegations of defect that caused fire in certain engines.
Hyundai said in a statement on Tuesday that car owners demanded the replacement of thetta engines at a higher rate than expected since 2020 as part of a lifelong service guarantee for the auto industry for the problematic part. According to the company’s statement, about 2. 4 million Hyundai vehicles and 1. 8 million Kia vehicles were impacted by engine problems and other crises.
The company added that it would work to win back customers’ trust while allocating funds to increase the quality and safety of its vehicles.
The engines situation will be resolved with 2 billion dollars from Hyundai and Kia.
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