[Colin]

Hyundai announced a recall recently of over a half million vehicles. Those are Sonatas and Accents, but each for different reasons. Good timing since right now everyone is talking to VW, so this doesn't seem like a big deal at all.

Hyundai is recalling a total of 569,500 Sonatas and Accents for two separate issues. According to recall filings with NHTSA, certain 2011 and 2012 Sonatas were manufactured with too much metal flashing on certain engine components, which can break off and wreak havoc on the motors’ internals. As for the affected Accents, those cars (model years 2009–2011) could suffer from a faulty brake switch. As a result, 470,000 Sonatas and 99,500 Accents are being recalled.

Hyundai Recalling 569,500 Sonatas, Accents Over Separate Defects ? News ?*Car and Driver | Car and Driver Blog

 

[Santana]

At least it's nothing that seems to be what we should be concerned about. If it was Tuscon related i'd start to worry.

 

[Cruizin]

1/2 million recalls is nothing compared to the 11 million vehicles that VW had to recall and fix. At least the issue for the 2011 and 2012 Sonatas isn't too alarming but that faulty brake switch may have already caused a few accidents if it's being recalled.

 

[Colin]

1/2 million recalls is nothing compared to the 11 million vehicles that VW had to recall and fix. At least the issue for the 2011 and 2012 Sonatas isn't too alarming but that faulty brake switch may have already caused a few accidents if it's being recalled.

Exactly. If you have something bad that you need to announce, now would be the time to do it. Its not like it will be heard much since all coverage is focusing on VW right now.

 

[Cruizin]

Seems like BMW failed to recall cars that failed the side crash test too. LOL. Everything is coming apart in the auto industry these days.

 

[Colin]

Seems like BMW failed to recall cars that failed the side crash test too. LOL. Everything is coming apart in the auto industry these days.

I think all the regulators are going to do some more intense investigating. They will find some bad stuff. Punish them a bit. And then things will go back to normal with maybe a few better testing techniques. Obviously there is a culture of this in the auto industry.

 

[Santana]

It's getting ugly, getting to a point that you just have to go with what seems good enough from what you can make of it, things that could situations like this not so bad. But at least in some of these bad cases you can get out rather easily... I think that's what's happening to some people with a VW product.

 

[Cruizin]

I think all the regulators are going to do some more intense investigating. They will find some bad stuff. Punish them a bit. And then things will go back to normal with maybe a few better testing techniques. Obviously there is a culture of this in the auto industry.

Most likely what's going to happen. VW is large enough to rebound from the cost of the recall and any additional fines.

 

[Santana]

Yeah that's one thing we can't forget and that is how big of a company they are, with the kind of money they already have and what they have coming in... they'll still be in the green once all of this is said and done.

 

[Cruizin]

VW Canada seems to be giving out steep incentive for their non diesel models in order to offset their low sale numbers due to the scandal. That's more money they can put towards the scandal costs.
They will recover so now may be the best time to buy a few VW stocks.

 

[Colin]

It might be a good time to buy stock, but I'm no expert and it just doesn't feel right investing in a company after they pull some shady stuff like this.

I would rather pay more for a car that is from a brand that I trust instead of taking a deal on a brand that is currently embroiled in the mess that VW is in.

 

[Santana]

They'll recover especially with the portfolio they have and looking at past trends, investing now isn't that bad of an idea, you just can't be looking for a 'quick fix' hoping to get a big return fast, it's a long term approach, their recovery back to levels they were at before this issue will take time.