The United States auto safety agency has stepped up its probe into engine fires that have plagued some Hyundai Motors and Kia Motors vehicles for more than six years.

US regulators to step up investigation into Kia, Hyundai engine fire probe

Watch today in 'World Business Watch': A tentative deal between Hyundai Motors & its South Korean union to freeze wages.

A tentative deal between Hyundai Motors & its South Korean union to freeze wages

Hyundai&nbsp;and affiliate Kia&nbsp;said on Friday that they will recall 240,000 vehicles in South Korea after the government issued a compulsory recall order over safety defects, first flagged by a whistleblower.

This is the first time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles. It is a blow to Hyundai, which is already reeling from a record-low market share in its home market.

The ministry also asked prosecutors in Seoul to investigate whether or not the automakers allegedly covered up the five flaws, which affect 12 models, including the Elantra, Sonata, Santa Fe and Genesis.

The planned recalls will add to the 1.5 million vehicles that Hyundai and Kia last month offered to fix in South Korea and the United States over possible engine stalling - a defect which was also flagged by 26-year-old Hyundai engineer Kim Gwang-ho who last year had reported vehicle defects to the safety regulators in the two countries.

The ministry later asked the automakers to recall the vehicles over eight of the 32 problems reported by Kim. But Hyundai and Kia earlier rejected calls for a voluntary recall related to five defects, saying the defects did not compromise driving safety.

On Friday, Hyundai and Kia said in a joint statement they &quot;accept the administrative order&quot;, adding: &quot;There have been no reported injuries or accidents from the cited issues.&quot;

Shares of Hyundai Motor were down 2.2 per cent in a wider market that was down 0.5 per cent as of 0430 GMT. Kia Motors declined 1 per cent.

(Reuters)

First time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles.

Hyundai and affiliate Kia said on Friday that they will recall 240,000 vehicles in South Korea after the government issued a compulsory recall order over safety defects, first flagged by a whistleblower. This is the first time ever that the transport ministry has ordered a compulsory recall of Hyundai and Kia vehicles. It is a blow to Hyundai, which is already reeling from a record-low market share in its home market. The ministry also asked prosecutors in Seoul to investigate whether or not the automakers allegedly covered up the five flaws, which affect 12 models, including the Elantra, Sonata, Santa Fe and Genesis. The planned recalls will add to the 1.5 million vehicles that Hyundai and Kia last month offered to fix in South Korea and the United States over possible engine stalling - a defect which was also flagged by 26-year-old Hyundai engineer Kim Gwang-ho who last year had reported vehicle defects to the safety regulators in the two countries. The ministry later asked the automakers to recall the vehicles over eight of the 32 problems reported by Kim. But Hyundai and Kia earlier rejected calls for a voluntary recall related to five defects, saying the defects did not compromise driving safety. On Friday, Hyundai and Kia said in a joint statement they "accept the administrative order", adding: "There have been no reported injuries or accidents from the cited issues." Shares of Hyundai Motor were down 2.2 per cent in a wider market that was down 0.5 per cent as of 0430 GMT. Kia Motors declined 1 per cent. (Reuters)

Hyundai, Kia ordered to recall vehicles after whistleblower report

South Korean carmaker Kia Motors signed a deal on Thursday to invest about $1.1 billion to build its first factory in India, aiming to tap a fast growing market at a time when its China sales are sagging.

The Hyundai Motor affiliate posted a 19 per cent slump in first-quarter net profit as anti-Korean sentiment and a conflict with dealers hit its China sales, sending its shares down 2.2 per cent in a flat market.

Production at the factory in Anantapur district, Andhra Pradesh state, would begin in the second half of 2019, the company said.

Kia is expected to leverage Hyundai&#39;s supply chain network built around its factories in the neighbouring state of Tamil Nadu to gain a foothold in the Indian market, tipped to become the world&#39;s third-largest by 2020. Hyundai is India&#39;s second-largest automaker by sales. 
&nbsp; 
The plant, which will have production capacity of 300,000 vehicles a year, will produce a compact sedan and a sport utility vehicle tailored for the Indian market, Kia said in a statement. 
&nbsp; 
It will break ground in the fourth quarter of this year. 
&nbsp; 
&quot;Our new India plant will enable us to sell cars in the world&#39;s fifth-largest market, while providing greater flexibility for our global business,&quot; Kia Motors President Park Han-woo said in a statement. 
&nbsp; 
Reuters reported in February that Kia was close to finalising Andhra Pradesh as the site for its first Indian factory. 
&nbsp; 
The announcement came after Kia and Hyundai Motor suffered a March sales slump in China, their biggest market, and sharply cut production in the wake of Seoul`s decision to deploy a US anti-missile system, which angered China. 
&nbsp; 
&quot;The fall in consumer sentiment in China is stemming from a political issue, a situation which is beyond the control of an individual firm and is difficult to be resolved within the short term,&quot; Han Chun-soo, Kia&#39;s chief financial officer, said during an earnings conference call.

Kia would adjust its China production to reduce inventories, cut costs and launch new models including a small crossover to minimise the impact of the political row, he said.&nbsp;

Kia also said its first-quarter profit was hurt by a cost of 160 billion won ($141.53 million) to recall vehicles over an engine issue in North America and South Korea.

(Reuters)

The Hyundai Motor affiliate posted a 19 per cent slump in first-quarter net profit as anti-Korean sentiment and a conflict with dealers hit its China sales, sending its shares down 2.2 per cent in a flat market

South Korean carmaker Kia Motors signed a deal on Thursday to invest about $1.1 billion to build its first factory in India, aiming to tap a fast growing market at a time when its China sales are sagging. The Hyundai Motor affiliate posted a 19 per cent slump in first-quarter net profit as anti-Korean sentiment and a conflict with dealers hit its China sales, sending its shares down 2.2 per cent in a flat market. Production at the factory in Anantapur district, Andhra Pradesh state, would begin in the second half of 2019, the company said. Kia is expected to leverage Hyundai's supply chain network built around its factories in the neighbouring state of Tamil Nadu to gain a foothold in the Indian market, tipped to become the world's third-largest by 2020. Hyundai is India's second-largest automaker by sales. The plant, which will have production capacity of 300,000 vehicles a year, will produce a compact sedan and a sport utility vehicle tailored for the Indian market, Kia said in a statement. It will break ground in the fourth quarter of this year. "Our new India plant will enable us to sell cars in the world's fifth-largest market, while providing greater flexibility for our global business," Kia Motors President Park Han-woo said in a statement. Reuters reported in February that Kia was close to finalising Andhra Pradesh as the site for its first Indian factory. The announcement came after Kia and Hyundai Motor suffered a March sales slump in China, their biggest market, and sharply cut production in the wake of Seoul`s decision to deploy a US anti-missile system, which angered China. "The fall in consumer sentiment in China is stemming from a political issue, a situation which is beyond the control of an individual firm and is difficult to be resolved within the short term," Han Chun-soo, Kia's chief financial officer, said during an earnings conference call. Kia would adjust its China production to reduce inventories, cut costs and launch new models including a small crossover to minimise the impact of the political row, he said. Kia also said its first-quarter profit was hurt by a cost of 160 billion won ($141.53 million) to recall vehicles over an engine issue in North America and South Korea. (Reuters)

South Korean carmaker Kia to invest more than billion dollars in India

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US regulators to step up investigation into Kia, Hyundai engine fire probe

A tentative deal between Hyundai Motors & its South Korean union to freeze wages

Hyundai, Kia ordered to recall vehicles after whistleblower report

South Korean carmaker Kia to invest more than billion dollars in India