Hyundai Motor, Kia reflect 2.9 trillion won provisions in Q3 earnings

Home > Business > Industry

Hyundai Motor, Kia reflect 2.9 trillion won provisions in Q3 earnings

Published: 18 Oct. 2022, 18:14

Headquarters of Hyundai Motor and Kia in Yangjae-dong, southern Seoul, are seen on Feb. 4. [YONHAP]

Hyundai Motor and its affiliate Kia said Tuesday they reflected 2.9 trillion won ($2 billion) worth of provisions in their third-quarter earnings results, a move that could weigh on their September quarter bottom lines.

Hyundai and Kia put aside the provisions to resolve additional complaints involving the Theta II gasoline direct injection (GDi) engine and offer other customer services, the companies said in separate regulatory filings.

Hyundai and Kia plan to release their quarterly figures on Oct. 24 and 25, respectively.

In 2019, Hyundai Motor Group reached a settlement with car owners over the Theta II GDi engine for problems, such as engine stalling and non-collision fires, in the United States.

In the third quarter of 2020, Hyundai and Kia reflected a combined 3.39 trillion won worth of provisions in their financial results.

Yonhap