Here we go again…
Authorities in Germany have raided the offices of both Hyundai and Kia, alleging the Korean automakers installed defeat devices in certain vehicles. The models in question include over 210,000 diesel engines. As one would imagine, this news sent the two companies’ stocks into a downward spiral since the investigation could expand along with the coming punishment.
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It seems almost no automaker is free from the sin of engaging in emissions defeat device schemes, or at least being accused of it. At least here in the United States, the EPA is given incredible latitude to interpret what an emissions defeat device is, so what might have been okay within the regulatory scope in 2019 might today earn you a visit from EPA agents with guns. Too many automotive shops and parts manufacturers have learned this truth the hard way recently. It’s unclear if that’s the case in Germany or exactly what the violation Kia and Hyundai have been accused of covering up.
A spokesperson from Hyundai Motor Group stated the company is working with authorities during the investigation. Both Kia and Hyundai are subsidiaries.
Germany has been going hard on automakers it deems to have tried cheating emissions standards. Not only has Volkswagen been caught up in scandal, so has Porsche, Audi, Mercedes-Benz, Honda, Mazda, and Mitsubishi, to name a few. At this point the question should be which automakers haven’t been accused of cheating on emissions data.
In this case, it’s believed the engine software used by Hyundai and Kia in the vehicles being scrutinized originates from Bosch and Delphi. During the famous Volkswagen Dieselgate scandal, Bosch was very much under the microscope.
Back in the middle of the last decade, Kia and Hyundai along with several other automakers were investigated for potential emissions cheat schemes. No issues were found by German authorities. It looks like the automakers might not be so lucky this time.
Source: Reuters
Images via Hyundai, Kia
