Hyundai shares skid as US prosecutors investigate Hyundai car recalls

US prosecutors are investigating Hyundai Motor and its subsidiary Kia Motors to find out if the vehicle recalls were done properly, said one person and the documents reviewed by Reuters.

Shares of South Korean companies fell on Thursday because the survey was likely to lead to fines and reminders, while industry data showing a sharp decline in retail sales of passenger cars in China during the first half of November frightened investors more.

Hyundai and Kia, the world's No. 5 manufacturer, have recalled nearly 1.7 million vehicles in 2015 and 2017 in the United States at one of their biggest recalls in the country, citing an engine failure that is increasing the risk of an accident.

The US District Attorney's Office for the Southern District of New York (SDNY), part of the United States Department of Justice (DoJ), has opened a criminal investigation, told Reuters this person directly informed of the case. ;case.

It remains to be seen if the probe will lead to charges, added the person. If criminal charges are filed, it could result in heavy fines for car manufacturers.

Department of Justice coordinates investigation with US Transportation Regulatory Authority, NHTSA, on inquiry issue, said person, asking not to be identified because case is confidential .

Nicole Navas Oxman, a spokeswoman for the DoJ, declined to comment.

"As a rule, the Justice Department does not confirm, deny and comment on the existence or not of an investigation," she said in a statement sent to Reuters by mail electronic.