German Agents Raid Hyundai, Kia For Use Of Defeat Devices To Cheat On Emissions

The Frankfurt state prosecutor's office announced on Tuesday, June 28, 2022, that investigators raided Hyundai and Kia over allegations that they put over 210,000 diesel vehicles on the road with suspected illegal defeat devices, Rachel More reported for Reuters.

Photo Insert: The announcement pushed shares of the two South Korean automakers down more than 6% on Wednesday.

The announcement pushed shares of the two South Korean automakers down more than 6% on Wednesday, as investors fear the inquiry would be expanded and punitive damages imposed.

Defeat devices are mechanisms or software that can alter car emissions levels, sparking debate on whether manufacturers employ them to conceal the true pollution levels of their vehicles. Volkswagen admitted in 2015 to cheating US emissions tests on certain diesel engines with software.

According to the prosecutor's office, the engine software used by Hyundai and Kia is suspected to have come from parts suppliers Bosch and Delphi, which is now owned by the Borgwarner group.

In an operation coordinated by the European Union (EU) agency Eurojust, authorities searched the commercial premises at eight addresses in Germany and Luxembourg. A representative for Hyundai Motor Group in Seoul confirmed the raids and stated that the company was cooperating with authorities.

According to Kim Joon-sung, an analyst at Meritz Securities in Seoul, the inquiry may be widened or result in punitive penalties. However, he claimed that no problems were discovered when all Hyundai and Kia diesel models sold in Europe were inspected for potential emissions manipulation in the mid-2010s.

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