Following a series of recalls for millions of vehicles, Hyundai's chief technology officer Kwon Moon Sik has handed in his notice.
Yesterday, the president of the research and development division along with two other executives quit due to quality control issues. This year, the South Korean firm issued a recall notice for over a million cars along with its affiliate Kia Motors, bringing the total to 1.8 million cars worldwide.
Faulty brakes, stop-lamp switches and cruise control problems are all examples of vehicle issues which may eventually cause customers to crash. Hyundai set aside over $80 million this year to manage the recall list, which includes the Genesis sedan.
Although Nissan and Toyota have also been made to recall millions of vehicles due to safety worries, the blow to the firm's reputation is too much for these executives, and the loss of management figures is unlikely to improve consumer confidence or keep investors happy.
Following the recalls, Hyundai plans to launch a new version of the sedan this year. NH Investment & Securities Co analyst Lee Sang Hyun said:
"Hyundai is probably trying to refresh the atmosphere before the launch of its new models to show it cares about its quality. Hyundai has seen how poor quality control has hurt business at Toyota and other automakers and will try to avoid being the center of such attention at all costs."
The loss of key executives and the cost of vehicle recalls are not the only problems that Hyundai faces. Last year, the automaker's staff went on strike -- and a potential walkout will also take place this year over wages and employee benefits.
Image credit: Hyundai