Hyundai Motor shares dive after engine woes prompt third-quarter profit warning

[zzyzzx]

https://finance.yahoo.com/news/hyundai-motor-shares-dive-engine-021049696.html

Hyundai and Kia said quality-related costs of a combined 3.36 trillion won ($2.95 billion) related to the years-long quality problem that has tarnished their credibility, taking the total costs to nearly $5 billion.

Article fails to mention exactly which engine(s) are the cause. So I have no idea if it's related to this thread:

Hyundai / Kia Theta engine class action suit. . . .settled!

I received two notifications yesterday by mail (I have two Hyundai's in the family) advising that as part of the settlement, my two Hyundai Theta engines are covered for bearing-related engine failures for the life of the car. That warranty will follow the car to the junkyard, regardless of...

bobistheoilguy.com

 

[wemay]

From Bloomberg...

Hyundai Motor, Kia to Take $2.9 Billion Hit on Engine Problems

South Korea’s two biggest automakers are taking a 3.36 trillion won ($2.9 billion) earnings hit because of costs related to a 2019 settlement of a U.S. class-action lawsuit linked to alleged engine defects.

www.bloomberg.com

"More than 350 consumer complaints were reported to the U.S. National Highway Traffic Safety Administration over non-collision fires in Hyundai and Kia vehicles as result of the automakers’ “concealment of the defect,” according to the class-action lawsuit filed in December 2018 in the U.S. District Court for the Central District of California by law firm Hagens Berman."

I'm happy with the response of a lifetime warranty for the engines - new and subsequent owners.

 

[Blinker]

As a current Hyundai owner I’m not surprised. In the last several years Hyundai has gotten too confident, cocky almost, with their products. They let known issues go on for far too long. The Theta II issue is one, the Nu family 4 cylinder piston slap, the white paint peeling problem, the pano roof noise issues, shark fin antennas falling off, trunk latch failures, etc. there are so many issues they allow to continue on for far too long. Hyundai is really bad about not redesigning and improving in part defects.

 

[demarpaint]

I was selling Kias and remember when the Sedona first came out, several had bad engines. The shop was instructed by Kia to run the engine for 30 minutes at 5,000 rpms, if the engine blew it had to be replaced. If it didn't we delivered the vehicle. Did they take a step backwards??

 

[4WD]

If this was another brand the howler monkeys would blow the leaves from the trees …

 

[zzyzzx]

As a current Hyundai owner I’m not surprised. In the last several years Hyundai has gotten too confident, cocky almost, with their products. They let known issues go on for far too long. The Theta II issue is one, the Nu family 4 cylinder piston slap, the white paint peeling problem, the pano roof noise issues, shark fin antennas falling off, trunk latch failures, etc. there are so many issues they allow to continue on for far too long. Hyundai is really bad about not redesigning and improving in part defects.

Plus their dual clutch transmission issues. Of course now they are putting a CVT in some of their cars because their dual clutch transmission didn't work out. At least they stopped using direct injection on at least one of their cars.

As a reference on the Theta 11 issue:
https://thelemonfirm.com/2019/11/26...and-spontaneous-fires-are-just-the-beginning/

As a reference on the Nu engine:

Hyundai Should Get Out With the Nu, Their Ticking Time-Bomb of an Engine

The 1.8L Nu engine has been ticking owners off with its constant ticks, connecting rod knocks, predispostion to engine bearing failure and problems with oil sludge. These problems all happen within Hyundai's 10-year / 100,000 mile warranty, but the automaker is allegedly placing blame on owner...

hyundaiproblems.com

This whole website is interesting:
http://hyundaiproblems.com/
I can not find and mention of Kia or the 1.6L engine anywhere on that webpage, but apparently it has issues as well:

Hyundai finds new engine problem, prompting another recall

Hyundai has found a new problem that can cause its car engines to fail or catch fire, issuing yet another recall to fix problems that have affected more than 6 million vehicles during the past 3 ½ years

www.boston.com

 

[rob1715]

As a 2019 Sorento owner, I wonder if this is on top of, or includes, the $768 million settlement?

 

[Blinker]

Plus their dual clutch transmission issues. Of course now they are putting a CVT in some of their cars because their dual clutch transmission didn't work out. At least they stopped using direct injection on at least one of their cars.

As a reference on the Theta 11 issue:
https://thelemonfirm.com/2019/11/26...and-spontaneous-fires-are-just-the-beginning/

As a reference on the Nu engine:

Hyundai Should Get Out With the Nu, Their Ticking Time-Bomb of an Engine

The 1.8L Nu engine has been ticking owners off with its constant ticks, connecting rod knocks, predispostion to engine bearing failure and problems with oil sludge. These problems all happen within Hyundai's 10-year / 100,000 mile warranty, but the automaker is allegedly placing blame on owner...

hyundaiproblems.com

This whole website is interesting:
http://hyundaiproblems.com/
I can not find and mention of Kia or the 1.6L engine anywhere on that webpage, but apparently it has issues as well:

Hyundai finds new engine problem, prompting another recall

Hyundai has found a new problem that can cause its car engines to fail or catch fire, issuing yet another recall to fix problems that have affected more than 6 million vehicles during the past 3 ½ years

www.boston.com

Oh yeah I forgot about the DCT problem that they recently agreed on a settlement

The 1.6 Gamma engine found in the Hyundai Accent was actually Hyundai’s most reliable engine for quite a number of years, based off warranty claim information. The Gamma 1.6 Turbo has some failures. I wonder how the new Smartstream 1.6T will fare.

 

[ryster]

Article also says:

"For the first time, Hyundai said other engines that have not been mentioned previously are now included in provisions, possibly suggesting that more cost issues will continue after all,"

Sounds like it isn't just the Theta engines that have issues. Wonder what other engine problems are starting to crop up?

When I owned my Hyundai Sonata, I always felt like it was only 95% fully engineered. There was always something that was oddly designed, poorly placed, or just seemed incomplete. Hyundai/Kia are rated highly for initial quality, and they do show/test drive very well, but it seems that little nagging issues start to show up after a year or so. I would be hesitant to ever buy another Hyundai product based on my 5 year ownership of my Sonata, but I have friends that swear by Hyundai/Kia products and are repeat customers.

 

[Whammo]

Article also says:

"For the first time, Hyundai said other engines that have not been mentioned previously are now included in provisions, possibly suggesting that more cost issues will continue after all,"

Sounds like it isn't just the Theta engines that have issues. Wonder what other engine problems are starting to crop up?

When I owned my Hyundai Sonata, I always felt like it was only 95% fully engineered. There was always something that was oddly designed, poorly placed, or just seemed incomplete. Hyundai/Kia are rated highly for initial quality, and they do show/test drive very well, but it seems that little nagging issues start to show up after a year or so. I would be hesitant to ever buy another Hyundai product based on my 5 year ownership of my Sonata, but I have friends that swear by Hyundai/Kia products and are repeat customers.

I have a 2012 Optima with nearly 120,000 miles. The only major failure I've had is replacement of the radiator fan. All other work was typical wear and tear repairs.

 

[BLND1]

As a current Hyundai owner I’m not surprised. In the last several years Hyundai has gotten too confident, cocky almost, with their products. They let known issues go on for far too long. The Theta II issue is one, the Nu family 4 cylinder piston slap, the white paint peeling problem, the pano roof noise issues, shark fin antennas falling off, trunk latch failures, etc. there are so many issues they allow to continue on for far too long. Hyundai is really bad about not redesigning and improving in part defects.

Hyundai would be in much better shape if they only had 20+ years of their flagship truck frames rotting out.

 

[Blinker]

Agreed, Hyundai doesn’t have the legacy of quality that Toyota and Honda have to weather quality issues.

 

[ryster]

I have a 2012 Optima with nearly 120,000 miles. The only major failure I've had is replacement of the radiator fan. All other work was typical wear and tear repairs.

I had several issues with my 2011 2.4L GDi Sonata during the 5yrs/72,000 miles I owned it

- Failure of the thermostat and thermostat housing
- Screeching belt when driving in the rain accompanied by the battery light in the cluster. Dealer checked it during the 30,000 mile service, said it was fine/"normal". Continued to do it the whole time I owned the car
- Recall for rear suspension requiring total replacement of the lower control arms due to "incompatible" metals. Dealer had to literally cut the old pieces out. After the new pieces were installed the car handled like garbage.
- Recall for potential leak of the stainless steel brake lines. Dealer said it was a 4-6 hour job because the airbox and other bits had to come out and the lines couldn't be replaced from underneath. They weren't leaking so I never had the work done.
- Door latches wouldn't readily latch in subzero temperatures unless you slammed the door 7-10 times. Could never get the issue resolved, and keeping the latches greased up with white lithium grease or silicone spray did not resolve the issue.
- Brake switch replaced twice. Once due to check engine light/traction light staying on, then again due to recall of the part after the first replacement.
- Recall for shift lever issue
- Numerous interior squeaks and rattles (from doors, dash, rear parcel shelf, center console, etc.)
- Headlights were starting to delaminate (not oxidize, literally delaminate/peel)
- Car was consuming 1qt of oil every 800 miles by the time I traded it. Car had been serviced exclusively by the dealer every 5,000 miles.

A few months after I traded it, the engine recall was announced and I was really glad to be done with the Sonata at that point.

 

[Gixxer8989]

We have owned several Hyundai. Coil springs snapping were common. The V6 engines have timing chain issues ( mine and others I've seen at friends shop), Hyundai told my wife the engine was toast and would send a salesman to show her new vehicles, this was at 160,000 km or 100,000 miles. They ate brakes. The four cylinder lost oil even though I changed at 5000 km religiously.

 

[Silver]

"tarnished their credibility".

I just don't get folks. How did they ever receive this "credibility"? A whole year of
Gee whiz.

 

[Blinker]

"tarnished their credibility".

I just don't get folks. How did they ever receive this "credibility"? A whole year of
Gee whiz.

This is solely just my opinion, but when Hyundai started building stylish cars circa 2010 is when people started absolutely raving about Hyundai.

 

[CKN]

"tarnished their credibility".

I just don't get folks. How did they ever receive this "credibility"? A whole year of
Gee whiz.

It's like this. They replaced my Son's motor that was well out of warranty. Placed him in a nice Chevy Malibu for two weeks until the new motor came in. This was well before the court settlement. I'm actually an owner (2017 Hyundai Santa Fe XL-Limited w/AWD)-they have a 100,000 mile warranty on the power train. Saved over $5,000 dollars when I bought new over Toyo/Honda equivalent.

So-yea there are reasons to buy Hyundai.

 

[Imp4]

If this was another brand the howler monkeys would blow the leaves from the trees …

What other OEM has problems of this scale/magnitude?!?

 

[Pew]

What other OEM has problems of this scale/magnitude?!?

Ford powershift.

 

[Imp4]

Ford powershift.

Context man, context.
C'mon...