- Hyundai Motor Co (OTC: HYMLF) (OTC: HYMLY) (OTC: HYMOF) (OTC: HYMPF) (OTC: HYMPY) will replace battery systems in close to 82,000 electric vehicles globally due to fire risks leading to a product recall, Reuters reports. The product recalls (including one earlier) recall could cost around $900 million to the company.
- The majority of the latest recall applied to its popular electric car, the Kona EV, since October over a software upgrade after a series of fires. The recent recall includes around 76,000 Kona EVs and some Ioniq EV and Elec City models.
- South Korean authorities initiated an investigation to judge the first recall’s adequacy as one of the recalled vehicles caught fire.
- LG Chem Ltd (OTC: LGCLF) division LG Energy Solution responsible for the battery manufacture blamed Hyundai for the mishandling of LG’s suggestion regarding fast-charging logic in Hyundai’s battery management system. They also added that the battery cell should not be considered as the primary reason behind the fire.
- Reuters notes that the recall is one of the first mass battery pack replacements conducted by a major automaker. How Hyundai and LG handle the recall could set a precedent not only in South Korea but globally.
- There have been reported around 15 instances of fires involving the Kona EV - 11 in South Korea, two in Canada, and one each in Finland and Austria.
- The first recall accounted for 38.9 billion won out of the total 1 trillion won in estimated recall costs ($1 is equivalent to 1,111.7900 won).
- Price action: HYMLF shares closed at $89 on Tuesday.
- Image Courtesy: Wikimedia
- Click here to check out Benzinga's EV Hub for the latest electric vehicles news.
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