Hyundai Motor’s Q3 profit dented by large warranty costs

Published : Oct 24, 2019 - 14:34 Updated : Oct 24, 2019 - 15:32

Hyundai Motor Group said Thursday its operating profit in the third quarter fell 69.4 percent on-quarter, after having injected some 600 billion won ($511 million) to settle US lawsuits regarding faulty engines.

According to Hyundai, its third-quarter operating profit is estimated at 378.5 billion won, while sales came in at 26.9 trillion won.

(Yonhap)

Earlier this month, Hyundai announced a lifetime warranty for its 4.69 million faulty Theta 2 GDi engines in its vehicles, following massive recalls and an agreement in a US class-action lawsuit.

In terms of overseas sales, Hyundai has sold a combined 940,040 vehicles, down 1 percent on-year, due to weak demand in China and India.

In the domestic market, 163,322 units were sold, a decline of 4.7 percent on-year.

But the company’s sales in the period increased 10.4 percent, buoyed by the popularity of its SUV Palisade and reduced incentives in the US market.

“We expect the fourth-quarter results will show recovery as the market awaits the launch of the face-lifted New Grandeur and Genesis GV80, as well as expanded production of Palisade,” a Hyundai official said.

By Kim Da-sol (ddd@heraldcorp.com)