Mexican Media Brands
Hyundai Reserves $764 Million for Engine Lawsuit
Hyundai Motor Co. and its Kia Motors affiliate have set aside 900 billion won ($764 million) to settle a U.S. class-action lawsuit over engine stalling, fires and other problems.
#legal #regulations
Share
Hyundai Motor Co. and its Kia Motors affiliate have set aside 900 billion won ($764 million) to settle a U.S. class-action lawsuit over engine stalling, fires and other problems.
The company says it will book the charge against earnings for the July-September quarter.
The planned settlement covers 4.2 million Hyundai and Kia vehicles equipped with the company’s family of “Theta II” gasoline engines. The company has recalled about 1.6 million of the powerplants over fire concerns.
The National Highway Traffic Safety Administration has been conducting a criminal investigation into why Hyundai made the recalls in three steps over two years rather than fixing all affected engines under one campaign. In March several states announced their own probes into the issue.
Hyundai says the planned class-action lawsuit settlement includes engine repairs, extended warranties, cash compensation payments and a software update for the engines’ knock sensor system.
RELATED CONTENT
-
Ghosn Indicted on Two More Charges in Japan
Prosecutors in Japan have prolonged jail time for former Nissan Motor Co. Chairman Carlos Ghosn by filing two new charges against him.
-
Takata Opens $850 Million Fund to Pay Carmakers for Airbag Woes
Takata Corp. has launched an $850 million fund in the U.S. to repay carmakers for a portion of their costs to recall Takata airbag inflators that can explode when triggered by a crash.
-
VW Asks to Delay U.S. Diesel Emission Trials Over Hitler Reference
Volkswagen AG has asked a judge to delay several U.S. lawsuits involving rigged diesel emission controls because a lawyer representing hundreds of VW customers made “inflammatory” comments about the company.