SEOUL -- Hyundai Motor and affiliate Kia Motors said on Monday that their third-quarter earnings would reflect quality-related costs amounting to a combined 3.36 trillion won ($2.94 billion).
The costs would include additional provision expenses related to the South Korean automakers' Theta II GDI engines, the companies said in separate regulatory filings. The latest provisions reflect higher-than-expected replacement rates for the engines of old vehicles subject to recalls, as well as growing consumer complaints over the same engine and other engines not subject to recalls, Hyundai said.
Hyundai Motor said a cost of 2.1 trillion won will be reflected in its earnings, while Kia Motors flagged an earnings hit of 1.26 trillion won. They did not provide further details.