Hyundai Motor recalls 81,000 EVs for battery defect, may prove to be the costliest recall

Hyundai Motor’s Q4 2020 results are going to suffer due to the costs of the recall.



Battery defects in Hyundai electric cars have forced Hyundai Motors to recall 81,701 vehicles globally. The recalled vehicles include Kona EV, Ioniq EV, and Elec City bus built between November 2017 and March 2020.

Hyundai Motor says the vehicle recalls are expected to cost the company about 1 trillion won or an estimated $900 million.

In South Korea, 26,699 electric vehicles have been recalled due to potential fire risks, according to the South Korean transport ministry.

The South Korean authorities are planning a thorough probe as Hyundai’s Kona EV is facing a second recall.

Hyundai’s recall is one of the most expensive in history 

In October, Hyundai recalled 25,564 Kona electric vehicles (EV) in South Korea over the risk of a short circuit possibly caused by faulty manufacturing of its high-voltage battery cells. In January this year, one of the recalled vehicles caught fire. According to the transport ministry, there have been some 15 cases of fires involving the Kona EV – 11 in South Korea, two in Canada, and one each in Finland and Austria.

Hyundai Kona Electric Recall

According to the transport ministry, there have been some 15 cases of fires involving the Kona EV – 11 in South Korea, two in Canada, and one each in Finland and Austria. (Image: Kona Electric; Hyundai Motor)

Hyundai Motor’s Q4 2020 results are going to suffer due to the costs of the recall. Hyundai said in a statement that of the total estimated recall costs, some 38.9 billion won was due to the first recall. “Our priority is to dispel potential risks against customer safety despite the low possibility of fires and high financial burden,” Hyundai said in a statement on Wednesday.

The defects are in some of the battery cells produced at LG energy solution’s China facility. LG Energy Solution, a division of LG Chem Ltd that manufactures the batteries, said in a statement that Hyundai Motor misapplied LG’s suggestion for fast-charging logic in Hyundai’s battery management system and that the battery cell should not be seen as the direct cause of the fire risks.

“It will be the most expensive recall in the EV industry so far because other EV makers have just upgraded their software for battery management systems, which is a relatively small cost,” said Lee Hang-koo, an adviser at Korea Automotive Technology Institute.

Last week an electric bus manufactured by Hyundai Motor Co caught fire while in use in South Korea. Local media reports said the Elec City bus was powered by LG Chem’s wholly-owned battery division LG Energy Solution’s batteries. LG said it would co-operate with the recall and investigation.

Hyundai has suffered another setback with the news of Tiger Wood’s car crash. It is reported that he was driving a Genesis GV80, a luxury brand of Hyundai Motor. It seems he received the brand new GV80 at a promotional golf event hosted by Genesis last weekend. The Genesis brand is a luxury offshoot from the parent company.

Hyundai, together with affiliate Kia, is the world’s fourth-largest electric vehicle maker. According to industry tracker SNE Research, the electric vehicle arm of the company has cornered a combined 7.2 percent market share as of September last year. The company’s goal is to sell 1 million electric vehicles annually by 2025.

Subscribe to the nation’s fastest-growing business magazine to get the latest auto news and insights.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Strong iPhone 12 sales could boost Apple’s Q3 2021 earnings

Will Apple manage to post solid earnings in Q3 2021? Here’s what Wall Street’s top analysts have to say ahead of Apple’s Q3 2021 earnings report today.
8 hours ago
Tesla earnings top $1 billion for the first time

Tesla earnings top $1 billion for the first time

Tesla earnings not only blew past analyst expectations but also marked the first time the automaker’s quarterly profit joined the three-comma club.
10 hours ago
Elon Musk tweet pushes Dogecoin prices up again

Elon Musk tweet pushes Dogecoin prices up again

Dogecoin was launched as a joke in 2013. The cryptocurrency is up a staggering 6,000% compared to last year’s prices due to wild speculations.
10 hours ago
Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

Amazon to hire a crypto lead, may soon accept payments in cryptocurrency

The product lead will develop the full marketing strategy from customer experience to technical development to launching it.
1 day ago
Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

Billionaire CEO Elon Musk Shares the Brutal Truth about Life as an Entrepreneur

“I would say I’ve had some pretty tough life experiences and Tesla’s probably responsible for two-thirds of all personal and professional pain combined, to give you a sense o
3 days ago
AT&T, Airbnb & UPS among firms to face Akamai’s global outage

AT&T, Airbnb & UPS among firms to face Akamai’s global outage

Global outage causes Akamai Technologies to re-think cyber securities.
4 days ago