Hyundai·Kia Motors "3.4 Trillion KRW Quality Costs Reflected in Q3 Earnings" (Update)

The Hyundai Motor Group headquarters building in Seocho-gu, Seoul./Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kiho Sung] Hyundai Motor Company and Kia Motors announced that they will reflect an additional provision of 3.36 trillion KRW for the Theta2 engine as quality costs in their third-quarter earnings this year.

Hyundai and Kia disclosed this information on the 19th through the Financial Supervisory Service's electronic disclosure system. The amount reflected as quality costs this time is 2.1 trillion KRW for Hyundai and 1.26 trillion KRW for Kia. Hyundai and Kia plan to include these quality costs in their third-quarter earnings.

Through the disclosure, Hyundai and Kia stated, "We plan to reflect quality costs in the third-quarter business results to set additional provisions for some engines such as the Theta2 GDI and to take proactive customer protection measures," adding, "We will focus on preventing the recurrence of quality issues through fundamental improvements and process innovation, and do our best to restore customer trust."

Meanwhile, Hyundai and Kia will hold a briefing session for analysts and overseas investors regarding this matter on the same day. Holding an investor briefing before the official earnings announcement (on the 26th) is unusual, and it appears to be aimed at minimizing market shock as the inclusion of quality costs in the earnings significantly deviates from initial market expectations.

This content was produced with the assistance of AI translation services.