Hyundai Motor Co. has announced it will recall close to 82,000 electric vehicles to replace battery packs globally due to fire risks.
The move from the South Korean carmaker will cost the company close to $900 million dollars after the South Korean government found defects in the vehicles’ battery packs.
Hyundai’s voluntary recall involves three electric vehicle models Kona, Ioniq and Elec City.
South Korea’s Transport Ministry earlier said a series of fires involving Kona vehicles had most likely been caused by short circuits in defective high-voltage battery cells.
The automaker will be recalling a total of 81,701 units of the three cars — 26,699 units in Korea and 55,002 units in other countries.
The affected electric vehicles were equipped with battery cells produced by LG Energy Solution at its battery plant in Nanjing, China from September 2017 to July 2019.
The battery cells appear to have a flaw in their cathode tabs, making them prone to short circuits, it said. It added, however, that the investigation was not yet complete.
The replacement of the battery systems is expected to cost about 1 trillion won ($899 million), a charge that will be reflected in the South Korean automaker’s fourth-quarter earnings to be released soon.
The voluntary recall also comes in the middle of the automaker’s big marketing campaign for its Ioniq 5 line. Ioniq is the first battery-electric model from its dedicated EV brand.
See Related Story: Hyundai to Release Dedicated Electric Vehicle Line under Ioniq Brand
Hyundai Motor Company on Monday launched the Ioniq 5 midsize EV during a virtual world premiere event. As the first model in Hyundai’s new Ioniq brand dedicated to battery electric vehicles (BEV), Ioniq 5 sets the benchmark to redefine the electric mobility lifestyle with sustainable and innovative features.
“IONIQ 5 will accommodate lifestyles without limits, proactively caring for customers’ needs throughout their journey,” said Thomas Schemera, Executive Vice President and Global Chief Marketing Officer said in a statement.
“It is truly the first electric vehicle to provide a new experience with its innovative use of interior space and advanced technologies,” Schemera said.
Hyundai plans to sell 70,000 of the vehicles built on its EV-dedicated platform this year and 100,000 units in 2022.
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