Hyundai And Kia Initiate Massive US Recalls Amid Engine Fire Concerns

Hyundai Motor Co., Ltd.HYMTF and Kia Corp have issued "park outside" recalls for more than 3.3 million vehicles due to the fire risk.

Hyundai Motor America recalled approximately 1.64 million select Hyundai and Genesis vehicles, and Kia America recalled 1.73 million select Kia vehicles.

Until these recalled vehicles have been repaired, the manufacturers say the safest place to park them is outside and away from homes and other structures, according to a statement from the auto regulator National Highway Traffic Safety Administration. Fires can occur whether the vehicle is parked and turned off or while driving.

The latest development closely follows the companies' plans to decrease the prices of several electric vehicles (EVs), in light of the South Korean government's decision to expand subsidies as it aims to revive the dwindling interest and demand for clean vehicles in the country.

Related: EV Price Wars: Hyundai And Kia Slash EV Prices Amidst South Korean Subsidy Surge: Report

The vehicle's anti-lock brake system module could leak brake fluid internally and cause an electrical short. 

An electrical short could result in a significant overcurrent in the ABS module, increasing the risk of an engine compartment fire while driving or parked.  

Hyundai plans to notify owners to bring their vehicles to the nearest dealership to replace the ABS module fuse. Kia is still working on a remedy.

Read More: EV Competition: Kia Motors Launches Its Cheapest EV In South Korea

Price Action: HYMTF shares traded flat at $39.18 on the last check Wednesday.