Hyundai Motor has delayed turning its recall plan for Kona EV to authorities in light of recent fires.
Hyundai didn’t mention the reasoning behind its decision to delay turning in the plan to South Korea’s Ministry of Land, Infrastructure and Transport
People familiar with the matter said the delay is caused by Hyundai and LG Energy Solution being unable to reach an agreement on how to bear the cost of the recall.
A recall will affect over 77,000 Kona EVs and the cost will likely exceed 1 trillion won.
LG Energy Solution had previously denied that faulty batteries were the cause of the fires.
The company’s position is likely that it can’t shoulder half of the cost.
Hyundai needs a quick recall to protect its brand image.
Multiple companies are involved in the calculation of how to divide the cost __ there is HL Green Power, a battery pack making joint venture between Hyundai and LG Chem, Hyundai Mobis, which assembles battery packs and Hyundai Kefico, which manufactures the battery management system.