by Burke Speaker | November 12, 2013 9:13 am
Facing a slew of recalls over the past year, Hyundai Motor Company’s chief technology officer has resigned and other personnel changes have been put into effect.
Kwon Moon Sik, president of the research and development division, quit Monday and with him left two additional executives.
The move from the South Korean automaker is being seen as a stopgap measure to stem the emerging distrust in the manufacturer after numerous vehicle issues.
The Hyundai recalls (and from those of affiliate Kia Motors Corp.) including more than 1.7 million vehicles in the U.S. The issue was blamed on malfunctioning stop-lamp switches.
From the Detroit News:
The company expanded the recall to Genesis sedans, made between December 2007 and March 2012, on a faulty brake system, according to an emailed statement from South Korea’s transport ministry last month.
Hyundai set aside 90 billion won ($84 million) in the first quarter this year to manage the recalls in the U.S. on the electronic defects, Lee Won Hee, chief financial officer, said in April.
“Hyundai is probably trying to refresh the atmosphere before the launch of its new models to show it cares about its quality,” Lee Sang Hyun, an analyst at NH Investment & Securities Co., told the paper. “Hyundai has seen how poor quality control has hurt business at Toyota and other automakers and will try to avoid being the center of such attention at all costs.”
The company rose 0.6% to 249,000 won at the close in Seoul trading; the Kospi index gained 0.9%.
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