Hyundai's shares nosedive on German raid over defeat car devices
Shares in Hyundai Motor and its affiliate Kia plunged on Wednesday, as German authorities raided the carmakers' local offices over suspicions they had installed defeat devices on some of their combustion cars.
On Wednesday, Hyundai plunged 5.7 per cent to 175,500 won ($135.17), and Kia plummeted 6.1 per cent to 76,900 won.
Among other affiliates, auto parts maker Hyundai Mobis Co. fell 3.6 per cent to 199,000 won, and logistics firm Hyundai Glovis Co. shed 1.1 percent to 183,000 won, reports Yonhap news agency.
Hyundai confirmed the raid by German prosecutors, and it is working with the German authorities about the matter. It didn't elaborate on the investigation.
Defeat devices are mechanisms or software that can change vehicle emissions levels. Carmakers may use the devices to cheat on emissions tests.
Hyundai and Kia allegedly placed more than 200,000 diesel vehicles with suspected illegal defeat devices in the German market, according to foreign news media reports.