>> Hyundai Motor shares tumbling as much as 12% Thursday, a huge earnings miss causing investors to swerve. Profit down by two-thirds to just $236 million, it's lowest in more than 7 years. Big recalls are costing Hyundai big money in the US, $440 million to be precise. The company has other headaches too, word is Hyunjoo Jin is in Seoul.
>> Hyundai gained reputation for its value offerings during the 2009 global economy down turn. But now it has lost its pricing advantage in its key US market. The price of a Sonata sedan, for example, it used to be 10% cheaper than Toyota's Camry, but now it has risen to the level of Toyota's Camry.
So similarly priced.>> The South Korean firm can't seem to get it right in the US, there it depended on sales of big sedans, missing the trend for SUVs. Now it's finally catching up, Hyundai banking on its latest Santa Fe model to turn US sales around. But they rose just 1% over the third quarter.
Then there's the specter of new tariffs as part of a trade war.>> Hyundai will be hit hard by the tariffs because half of its vehicles sold in the US are imported from South Korea.
>> The firm predicting a rebound in the fourth quarter, though it didn't offer much detail on what might drive an upturn. And its recall troubles don't seem to be going away. The US Senate planning to grill Hyundai and sister company Kia over the issue. Safety advocates say the car makers did too little to tackle engine defects they blame for fatal fires