US prosecutors probing Hyundai, Kia vehicle recalls: Source, Latest Business News - The New Paper

US prosecutors probing Hyundai, Kia vehicle recalls: Source

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SEOUL/WASHINGTON: US prosecutors are investigating if Hyundai Motor and affiliate Kia Motors' vehicle recalls over engine defects were conducted properly, according to a source and documents seen by Reuters.

The South Korean companies recalled nearly 1.7 million vehicles in 2015 and last year in the US in one of their biggest recalls in the country, citing engine failure that raises the risk of a crash.

The Attorney's Office for the Southern District of New York (SDNY), part of the US Department of Justice (DoJ), launched the probe, the source said.

The DoJ is coordinating with the US transport regulator, the National Highway Traffic Safety Administration (NHTSA), the source added.

The SDNY probe is in addition to an ongoing investigation by NHTSA into whether the Hyundai and Kia recalls covered enough vehicles and were conducted in a timely manner. - REUTERS