Another 3.4 Million Hyundais and Kias Recalled For Fire Risk
Good morning! It’s Wednesday, September 27, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
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1st Gear: Millions of Hyundais, Kias Recalled For Fire Risk
Hyundai and Kia are recalling a combined 3.37 million vehicles in the U.S. because of an engine fire risk. The twin automakers are reportedly telling owners to park outside and away from structures until repairs can be completed.
Brake fluid can reportedly leak, which can cause an electrical short that could lead to a fire. From Reuters:
Hyundai said it has reports of 21 fires and 21 other thermal incidents since 2017 related to the recall, while Kia has reports of at least 10 confirmed fires and melting incidents.
Kia America’s recall covers 1.73 million Borrego, Cadenza, Forte, Sportage, K900, Optima, Soul Rio, Sorento, and Rondo vehicles. The recall covers various model years for each vehicle from 2010 through 2017, according to a filing with the National Highway Traffic Safety Administration.
The Hydraulic Electronic Control Unit (HECU) in the vehicles may experience an electrical short as a result of brake fluid leaks, which can result in an engine compartment fire while parked or driving, the automaker said.
Hyundai is recalling 1.64 million Elantra, Genesis Coupe, Sonata Hybrid, Accent, Azera, Veloster, Santa Fe, Equus, Veracruz, Tucson, Tucson Fuel Cell, and Santa Fe Sport vehicles from model years covering 2011 through 2015.
The outlet reports that the ABS module may leak brake fluid internally which could cause an electrical short. The result of that could lead to an engine compartment fire while parked or driving.
Reuters says dealers will replace the HECU and ABS fuses if necessary, and owners can expected to be notified of the recall in November.
This isn’t the first Hyundai/Kia fire recall. We’ve covered them extensively in the past.
2nd Gear: Suppliers Want Financial Help From Biden
U.S. automotive parts suppliers are reportedly asking President Biden to provide them with federal assistance to help with the impact of the United Auto Workers strike against the Big Three automakers. From Reuters:
MEMA, the Vehicle Suppliers Association, in a letter seen by Reuters urged Biden to “effectuate federal assistance to ensure the viability of this critical industry sector. Without federal assistance, the ability of the automotive industry to resume full manufacturing capacity is at risk.”
The group wants the Biden administration to provide low-interest loans and consider loan forgiveness for struggling small suppliers. Biden is headed to Detroit on Tuesday to show support for striking UAW workers.
The White House did not immediately comment and has previously declined to comment on whether it is considering programs to support auto suppliers.
According to Reuters, the strike, now in its second week, has forced some auto suppliers to cut production and furlough some of their workers. The letter reportedly cites “immediate concern” for smaller suppliers that have revenue under $200 million. It is asking the Biden administration to establish a Small Business Administration program or some other sort of agency “to maintain workforce and operational capacity.”
3rd Gear: GOP Lawmakers Still Think The Ford-CATL Partnership Stinks
The chairs of three House of Representatives committees have reportedly demanded that Ford turn over documents related to its partnership with Chinese battery company CATL. They’ve even threatened to call CEO Jim Farley to testify before Congress. From Reuters:
Republicans Jason Smith, Cathy McMorris Rodgers and Mike Gallagher – who chair the Ways and Means, Energy and Commerce and China select committees – jointly wrote to Farley with a new deadline seeking documents about the CATL partnership and the automaker’s plan to build a $3.5 billion battery manufacturing plant in Michigan using Chinese technology.
“Ford’s ongoing refusal to provide substantive responses … raises serious concerns regarding its licensing agreement with CATL,” the lawmakers wrote on Tuesday in a previously unreported letter seen by Reuters.
Republicans have been probing Ford’s battery plant plan for months over concerns it could facilitate the flow of U.S. tax subsidies to China and leave Ford dependent on Chinese technology.
Earlier this week, Ford said it was pausing work on the Michigan battery plant. It cited concerns about its ability to operate it competitively amid contract talks with the UAW. As you may have imagined, folks with the UAW union were not fans of this decision.
The lawmakers want documents including the Ford/CATL licensing agreement, communications between Ford and the Biden Administration referring to the licensing agreement and achievable tax credits, and records of Ford’s knowledge of CATL’s “apparent attempt to shield its connection to Xinjiang-based companies.”
Human rights groups accuse Beijing of abuses against Xinjiang’s Uyghur inhabitants, including the mass use of forced labor in internment camps. China denies the allegations.
[…]
The lawmakers said if Ford does not disclose records sought previously by Oct. 6 “we will consider other means to obtain the documents, including compulsory process or insisting that you appear before Congress to publicly explain your failure to comply.”
A spokesperson for the automaker reportedly said that Ford had already answered multiple congressional letters and “thoroughly responded to questions and shared detailed information about Ford’s work to strengthen domestic battery manufacturing.” However, they did not say if the automaker would comply with this latest document request.
Last year, Congress reportedly passed legislation that wouldn’t give consumers the $7,500 EV tax credit if any battery components are manufactured or assembled by a “foreign entity of concern” like China in this case.
4th Gear: $41M Expansion Coming To Samsung Battery Plants In Michigan
Samsung’s automotive battery division is planning to expand two of its factories in suburban Detroit by 218,000 square feet. It’s part of a $41 million move that would create 368 jobs. From Automotive News:
Samsung SDI America Inc., which has its North American headquarters in Auburn Hills, Mich., would add to its 628 employees in Michigan with the new positions, expected to pay $37.50 per hour plus benefits, according to a briefing memo from the Michigan Economic Development Corp.
The expansion will support the company’s fast-growing lithium-ion battery business for electric vehicles, leading to a doubling of manufacturing capacity with the addition of a second production line, the memo said.
A $5 million performance-based grant, approved Tuesday by the Michigan Strategic Fund board, was needed to keep the investment from going to Kokomo, Ind., where the company is teaming with automaker Stellantis on a 34-gigawatt hour battery factory expected to launch in 2025.
“Additionally, the Company is considering further expansions in the Midwest United States to broaden their footprint,” the memo said. The grant “will help address the cost disadvantage of locating the project in Michigan when compared to the competing sites.”
Auto News reports that Samsung SDI moved into its Auburn Hills location back in 2019, investing about $63 million and creating 461 jobs. The project has since received a $10 million MEDC grant and a property tax abatement from Auburn Hills.
For the expansion, the company will also benefit from free advertising from the city on electronic billboards along I-75, and Oakland County Michigan Works! pledged to help in the way of workforce training.
Samsung SDI America reportedly has its North American headquarters situated in Auburn Hills. It also has an office in San Jose, California, and its global headquarters is located in Yongin, South Korea.
Reverse: My Parents Got Married 31 Years Ago Today!
Photo: Andy Kalmowitz / Jalopnik
They sure are swell.
Neutral: You Know What Day It Is
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On The Radio: Jason Segel, Walter – “Man Or Muppet”
Jason Segel, Walter – Man Or Muppet (from “The Muppets”) – Jason Segel
I watched this movie for the first time ever yesterday, and this has been stuck in my head ever since.
