The recall of over 80,000 electric cars is costing the South Korean automaker dearly.
The global return campaign due to highly dangerous batteries spoils Hyundai's current balance sheet. Due to the repair of around 82,000 e-cars, the South Korean manufacturer has to reduce the operating result for the fourth quarter by almost 20 percent. Instead of the quarterly profit of 1.6 trillion won (1.18 billion euros) reported at the end of January, the result is now 1.3 trillion won (the equivalent of almost 960 million euros), as the company announced on Thursday.
Several return campaigns
During the $ 900 million recall, the battery systems of some electric cars had to be replaced. This particularly affects the Kona SUV model, the manufacturer's best-selling electric car. Batteries from LG Energy Solution, a subsidiary of the South Korean chemical company LG Chem, are installed in the car.
LG Chem is one of the major battery cell manufacturers and supplies many car manufacturers around the world, including Volkswagen. At the end of last year, Hyundai had already called the Kona to the workshops for a software update after a series of fires. After one of the recalled vehicles caught fire in January, the South Korean authorities initiated an investigation.
Battery manufacturer LG Chem rejects guilt
Battery manufacturer LG Energy Solutions denied any blame for the incidents, stating that Hyundai had misapplied fast charge logic in battery management. The battery cell is not the cause of the fire. However, the South Korean Ministry of Transportation found deficiencies in some battery cells made at LG Energy's Chinese factory. Hyundai itself did not comment on the causes of the fires.
