South Korea recalls Hyundai cars, asks probe on cover-up

Posted May 17, 2017

Hyundai and Kia, which had previously argued that the flaws presented no danger to driving safety, said in a joint statement on Friday they would cede to the order. Its sister company Kia Motors who doesn't have new models except for compact hybrid SUV Niro also saw its total SUV sales fall 24.5 percent from 16,908 units to 12,770 units. "The proposed employment is around 1,500 persons", the statement said. The company is also setting up a production facility in Anantapur, Andhra Pradesh.

But after it expanded in Gujarat there had been talk that major investors were investing outside Tamil Nadu.

"Under such business needs and requirements of our company and stakeholders, I hope you kindly understand that we have not established our overseas plants in the same states where the plants of Hyundai Motor Company are located (such as in the United States of America, China, Europe)".

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This is the first whistleblower case to affect South Korea's automotive industry, and Kim Gwang-ho has identified 32 problems, of which this recall addresses five. It also exports to almost 92 countries. ELCOT has allotted 28 acres for the project which will generate 12,000 jobs.

The Korean manufacturer could showcase up to four cars at the 2018 Auto Expo, which will be held in February.

Elaborating on some of the upcoming projects, the release said, "France-based PSA Peugeot Citroen, is now planning to set up three manufacturing facilities in Kancheepuram district and Hosur (respectively) at investments worth Rs 3,000 crore".

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The initial investment envisaged in the three facilities will be about Rs 3,000 crore. Projects like Hyundai, Yamaha Musical Instruments, Xuzhou Construction Machinery, Vedanta, ITC, CEAT Tyres and Freudenberg are planning to invest Rs. 15,000 crore in Tamil Nadu and create employment opportunities for around 6,500 people, the government said.

Some believe an additional recall of 250,000 vehicles could deal a further blow, but a Hyundai Motor spokesperson said it would have a limited impact.

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