Hyundai Motor Group on Wednesday said it plans to overhaul its product quality control process following a series of product recalls globally that have had a significant impact on its financial performance.

Earlier this week the South Korean vehicle manufacturer said it would make provision for KRW3.4trn (US$3bn) in the third quarter of 2020 to cover costs relating to quality control and product recalls, following a series of battery fires on its Kona Electric models in the last year and in response to its malfunctioning Theta II petrol engines.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

The group expected to book a net loss for the third quarter when it releases its third quarter results on 26 October, as a result of the provision, compared with net profit of KRW460.5bn in Q3 2019. 

A company spokesman said the plan was to simplify the overall quality control processes at Hyundai Motor and sister company Kia Motors, allowing both to focus better on resolving problems.

The decision making process would also be streamlined to help the automakers respond more quickly to customer requirements.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Auto Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Auto Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving automotive industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now