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.
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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.
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By GlobalData
