Hyundai loses operating profit to warranty extensions

On 24 October 2024, Hyundai published its Q3 2024 report, which conveyed decidedly mixed results for the quarter. While revenue was up 4.7% year-on-year to KRW 42.9tr (US$31.1bn), operating profit and net profit stood at KRW 3.6tr and KRW 3.2tr—down 6.5% and 3%, respectively. The automaker claimed the financial downturn was attributable to a “one-off” occurrence of “pre-emptive warranty extension provisions” for its Sante Fe models in the US, incurring KRW 320bn.