Hyundai, LG Consent to Split Expense of Kona Recall
06 March, 2021
Hyundai and LG Strength Solution on Thursday decided to split the price of replacing the Kona electric power SUV's batteries 30:70 after a good spate of fires.
The full total cost is estimated at around W1.4 trillion (US$1=W1,125). The two companies revised their working profit figures going back fourth quarter to reflect the price in warranty provisions.
Hyundai said its fourth-quarter operating profit of W1.64 trillion therefore declined by W386.6 billion. It ideas to spend W425.5 billion on the recall, incorporating W38.9 billion in warrantee provision costs it set aside last October.
LG Chem, which owns LG Strength Solution, also announced a good revised fourth-quarter operating profit of W118.6 billion, down from W673.5 billion. It already reserve W120 billion for warrantee provisions in the last quarter and today added W555 billion.
Earlier, the automaker announced it is recalling 81,701 electric power vehicles around the world, mainly Konas, Ioniq hatchbacks and electric power buses manufactured around November 2017 and March 2020.
Since 2018, there were 15 situations of Konas catching fire after recharging or if they were parked. The Ministry of Land, Infrastructure and Transfer had explained the fires were due to brief circuits in faulty batteries, though LG claimed that Hyundai employed incorrect computer software, but that was not borne out by the investigation.
Source: