Thursday , April 22 2021

Hyundai's shares fall on the US stock market for research

Hyundai Motor and its partner Kia Motors are being investigated in the United States to determine if the processed review calls were made correctly

Automakers Hyundai Motor and its partner Kia Motors are under investigation in the United States to determine whether the review requests have been processed correctly, according to sources and documents that Reuters had access to.

Shares of South Korea fell on Thursday, fearing that the investigation would lead to fines and further requests for review, as industry data indicate a sharp drop in car sales in China in the first half of November . which scared more investors.

Hyundai and Kia, together the world's fifth-largest automotive group, withdrew nearly 1.7 million vehicles in 2015 and 2017 in the United States in one of the largest recall calls in the country due to an engine failure that increased risks of accidents.

The district attorney's office for the Southern District of New York, part of the US Department of Justice, has begun a criminal investigation, a source with direct knowledge of the matter told Reuters.

It is not yet known whether the investigation will lead to formal charges, the source added. If criminal charges are filed, automakers may face heavy fines.

Hyundai and Kia are already struggling because of the weakness of their business in key markets such as China and the United States.

Chinese industry data showed that retail sales of passenger cars in the country plummeted 32% in the first 16 days of this month.

Shares of Hyundai lost 5 percent to the lowest level in nine years, while Kia shares also fell 5 percent.


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