The shares of Hyundai and Kia Motors have taken a hit following controversy over the misquoting of their fuel efficiency figures to the consumers. Both the companies have however said that they are going to compensate their consumers for the losses that they may have incurred over misquote.
Going by the estimates of payouts that these auto manufacturers may have to undertake it may cost them several million dollars for the 900,000 cars that these companies have sold out in the market.
The biggest number of buyers for both the companies comes from US and it’s where the highest amount of payouts will be directed.
Shares prices of both Hyundai and Kia have taken a dip of around 7 percent in the South Korean Stock Market. Where Hyundai was trading at 200000 won and Kia Motors at 56300 won. Analyst James Yoon of BNP Paribas told Reuters, “We believe this could be a game-changing event in Hyundai’s success story,” and “We now find improvements in brand perception at risk due to faulty mileage claims, which are at the core of the brand’s success during difficult times.
“We think the potential financial loss is immaterial compared to the potential reputational loss of brand equity.”
Source: BBC Business
Photos: The Torque Report, Torque News