Hyundai Motor and affiliate Kia have warned of a new 2.9 billion dollar hit to earnings.
That’s related to existing provisions over engine issues.
It takes the total costs to almost 5 billion dollars.
Hyundai and Kia are together the world’s number five automaker.
In 2015 and 2017 they had to recall nearly 1.7 million vehicles in the U.S. over engine failures that raised the risk of crashes.
U.S. safety regulators have been conducting an investigation following concerns raised by a South Korean whistleblower.
Back in 2018 Reuters reported that Hyundai was being investigated by prosecutors over whether it handled the recalls properly.
Some analysts now expect the two firms to swing to a loss in the latest quarter as a result of the provisions.
Shares in both firms closed lower in Monday (October 19) trade.