South Korea orders Hyundai, Kia to recall 240000 cars after whistleblower report

South Korea orders Hyundai, Kia to recall 240000 cars after whistleblower report

South Korea orders Hyundai, Kia to recall 240000 cars after whistleblower report

South Korea's transport ministry has ordered automakers Hyundai Motor Co. and Kia Motors Corp.to recall 240,000 cars after a whistle-blower raised concerns about defects in twelve models made by the two automakers. This came after a tip off from a whistleblower.

It is the first time the South Korean government have ordered a compulsory vehicle recall due to the flaws flagged up on 12 different vehicles.

During June/July 2016 when Kia Motors showed interest in investing in India, the Tamil Nadu government established contacts with it and discussions were also held with Hyundai, the major shareholder in KIA Motors, the statement said.

Kia is an affiliate of Hyundai, officials are asking the country's prosecutor to look for any evidence of a potential cover up.

The models under scrutiny include the Hyundai i30 hatchback, Sonata midsize sedan, Genesis and Kia's Mohave and Carnival. Problems with vacuum pipes, fuel hoses and parking brake lights are among the issues uncovered.

Following allegations that the Tamil Nadu government did not give proper assistance to Kia Motors, due to which they shifted their business to Andhra Pradesh, the state government on Thursday clarified that the company was not setting up their plant in Tamil Nadu due to their own internal policy.

Hyundai said it respects the decision "though there have been no reported injuries or accidents from the cited issues".

The move is a blow to Hyundai and Kia, which are reeling from a recall last month of 1.4 million vehicles in the U.S., Canada and South Korea.

The latest recall comes after the two firms offered to fix 1.5m cars in South Korea and the U.S. over possible engine stalling. The transport ministry later asked the automakers to recall the vehicles over eight of the 32 defects.

Shares of Hyundai Motor fell 1.3 per cent and Kia Motors declined almost 1 per cent in the wider market that was down 0.4 per cent as of 0223 GMT.

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