Hyundai and Kia Allocates $760 Million Over Engine Fire Matters

On Friday, Hyundai Motor Co and partner Kia Motors Corp have held in reserve a total of 900 billion won ($757.86 million). This move aims to settle the U.S. class action hearing.

Moreover, to address engine-related matters in the United States and South Korea.

According to Hyundai Motor and Kia Motors, they will reproduce about 600 billion won. This decision has something to do with engine problems in July to September.

Meanwhile, affiliate Kia Motors has laid by about 300 billion won.

In a statement, the automakers stated the latest settlement offers the installation of a software update to lift safety.

The clearing is together with the performance, cash compensation options, lifetime warranties, free inspection, and repair of the covered engines.

Hyundai and Kia models have equipped a total of 4.17 million. In the meantime, as the U.S. settlement will be ongoing, the Theta II gasoline direct injection (GDI) engines will be affected.

Automakers Recall Addressing Possibility of Engine Fires

The two giant brands, together with the world’s fifth-biggest automaker by sales, has prompted nearly 1.7 million vehicles in the United States.

The recall is to remind automakers to address the possibility of engine fires.

Now, the U.S. safety regulator is inspecting whether the recalls protected enough vehicles and came into effect promptly.

The examination comes after Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in 2016.

Moreover, the travel was to tell the National Highway Traffic Safety Administration to companies recall more vehicles over the problem, citing an internal report.

In November, a news report indicated that the U.S. federal prosecutors had launched a criminal investigation. The investigation is to see if the recalls had been conducted properly.

Hyundai and Kia stated they anticipated the U.S. District Court for the Central District of California to evaluate the proposed settlement. The reimbursement is for the preliminary approval before the end of October.