Years after Volkswagen was found guilty of manipulating carbon emissions on its cars, Hyundai and Kia are in the limelight for a similar matter in an ongoing investigation. German authorities are conducting raids on the South Korean company’s facilities in the European country. The allegations are that over 2,10,000 diesel vehicles on the road are suspected to be fitted with illegal defeat devices. Also Read - Jeep Compass rival Hyundai Tucson 2022 unveiled in India: Check all features, engine details, more
A Reuters report claims that the South Korean companies witnessed a steep fall in share prices after the allegations were made. The shares were down more than 6% on Wednesday, as investors suspect that the investigations could lead to heavy fines. Also Read - Hyundai Motor to build its first South Korean EV factory
What are defeat devices?
A defeat device is something that can alter the emission levels of the car. It is suspected that car makers can use them to hide the true amount of pollution caused by their vehicles. The defeat devices can also be in the form of software, as was the case with Volkswagen in 2015 for some of its diesel engines. Also Read - Best-selling cars in India: Maruti Suzuki to Hyundai, here are the cars Indians loved
According to the report, the engine software that Hyundai and Kia used is thought to have come from parts companies Bosch, and Delphi, which today is owned by the Borgwarner group.
The raid was conducted by the European Union agency Eurojust and it happened at business premises at eight properties in Germany and Luxembourg.
A spokesperson for Hyundai Motor Group in Seoul, representing Kia and Hyundai, confirmed the raids to Reuters and said the company was working with the authorities.
In the 2010s Hyundai and Kia diesel models were investigated for similar allegations of manipulation of emissions. However, the companies were not found guilty of any wrongdoings.