Hyundai swings to loss over engine troubles

Hyundai Motor swung to a big loss in the latest quarter.

Costs related to engine problems and recalls smashed what would otherwise have been a strong three months.

For July-September, Hyundai reported a net loss of almost 300 million dollars - when analysts had predicted a big profit.

The South Korean automaker is the world’s fifth largest, when combined with affiliate Kia.

But the pair have faced years-long problems with engine defects that increase the risk of stalling and fire.

In all that’s cost them nearly 5 billion dollars.

They also face a probe by U.S. authorities over whether they handled related recalls in a proper manner.

In a statement Monday (October 26) Hyundai apologised to investors for the persistent problems.

But analysts said it could all have been much worse.

Hyundai actually enjoyed strong sales over the period in the U.S. and emerging markets including India.

Shares in the company closed around 2.7% higher following Monday’s news.