Garmer & Prather, PLLC Attorneys At Law

Kia and Hyundai expected to recall up to 1.3 million vehicles

Hyundai and Kia owners in Kentucky and across the country could soon be receiving recall notices. The manufacturers are recalling 171,348 vehicles in South Korea to replace potentially defective engine parts, and they are expected to take similar action in the United States. Reports suggest that the two companies have told American regulators that they plan to recall a yet-to-be-determined number of vehicles. Media outlets in Asia have reported that 1.3 million cars could be involved.

The South Korean recall was ordered after 2.0-liter and 2.4-liter gasoline engines began stalling. The problem was soon linked to metal debris that had been allowed to accumulate during the manufacturing process. This debris can cause overheating and stalling by restricting the flow of oil to crucial engine components. Hyundai and Kia say that the problem has now been rectified. The vehicles involved will be inspected by dealers, and mechanics will fit new engine blocks if necessary.

Financial experts say that the recalls could cost the two South Korean companies hundreds of millions of dollars even though no accidents or deaths have been linked to the engine problems. News of the South Korean recall prompted a 2.7 percent fall in the Hyundai share price, and a large recall in the United States could further shake investor confidence. Some analysts say that the reported U.S. recall will cost Hyundai as much as $220 million.

These reports show how financially damaging defective product issues can be to corporations. The defendants in these cases may be eager to resolve disputes quickly and discreetly, and personal injury attorneys with experience in this area could urge them to make generous settlement offers to avoid the risks and publicity of a jury trial.

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