Hyundai is currently in big trouble. The Korean company had to recall tens of thousands of its e-cars and expects damage that is already almost 100 million euros. What happened? It is the batteries that Hyundai installs in its e-cars that apparently do not work properly and cause fires.
What are the possible consequences?
The massive recall due to the fire hazard posed by the batteries has serious consequences for Hyundai. Due to the repairs of 82.000 e-cars alone, the company has to reduce its operating result for the fourth quarter by a fifth. Hyundai had actually expected a quarterly profit of the equivalent of 960 million euros for the end of January. Now the expected profit is set against 900 million euros in repair costs.
Which car is most affected?
It is the first mass exchange of its kind and it throws a bad light not only on the manufacturers of the batteries, but also on the car manufacturers and how they deal with this problem. Electric mobility is still in its infancy, but the industry will keep a very close eye on how things go at Hyundai. The most affected is the Hyundai Kona, an SUV, the best-selling model of the South Korean company. Batteries from LG Energy Solution, a subsidiary of the South Korean chemical company LG Chem, are installed in this car. This company is a supplier to many car manufacturers around the world, including VW.
A very sensitive subject
The subject of batteries in e-cars is a very sensitive one. A few years ago, accidents involving Tesla models caused quite a stir because the batteries burned and people died. At that time, however, there was no comparable recall as now with Hyundai. Already at the end of last year, Hyundai's Kona was called into workshops to update the software after a series of fires. Incidentally, it was the South Korean authorities who initiated an investigation, and the battery manufacturer rejected all guilt at the time.