Hyundai Recalls Nearly 140,000 2011 Sonatas, No Mention On Website

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By Douglas A. McIntyre Updated Published
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Hyundai has been the fastest growing car company in the US over the last two years. It has matched high quality with low prices, much as Japanese manufacturers did for three decades.

The company’s website trumpets that news that its 2011 Sonata received the Insurance Institute for Highway Safety’s selection as a “Top Safety Pick” The homepage of the car company neglects to point out that the U.S. National Highway Traffic Safety Administration recalled some 140,000 Sonata sedans in the U.S. because of a safety defect that could result in a loss of, or reduced, steering.

The recall document says:

“Hyundai will initiate a recall of model year 2011 Hyundai Sonata vehicles produced beginning December II, 2009 through September 10, 2010.””

And, The recall will include approximately 139,500 model year 2011 Hyundai Sonata vehicles produced beginning December 11, 2009 through September 10, 2010.”

“The steering column is connected to the steering gear assembly through an intennediate shaft. Universal joints connect the upper end of the intennediate shaft to the steering column and the lower end of the intennediate shaft to the steering gear pinion shaft. Hyundai has found eight instances from the initial production period for this new vehicle of improperly assembled or loose steering column intermediate shaft universal joint connections. Corrective actions have been implemented to ensure proper assembly oft he steering column intennediate shaft.”

The news could hardly come at a worse time. The South Korean company is about to launch its ultra-luxury Equus to compete with the top end of the Mercedes, Lexus, and BMW brands. The vehicle will sell for $50,000 to $60,000 and is meant to extend the Hyundai’s reputation for affordable luxury created by its much-awarded Genesis sedan.  The introduction of the new car was also to be supported by the company’s nearly 20% improvement in American sales this year, fueled mostly by the Sonata.

Hyundai’s spotless reputation for quality just got soiled, and with it the chances for the perfect launch of the Equus.

Douglas A. McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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