SEOUL, April 4 (Yonhap) -- Moody's Investors Service said Thursday that Hyundai Motor Co. and Kia Motors Corp. are among the carmakers that may face fines for high-emission models in coming years.
Automakers may face substantial fines or suffer a credit negative if they don't quickly achieve lower emission targets as the United States, Europe and China all strengthen their emissions and fuel-economy rules for the spread of electrified cars, Moody's said in a report.
"The potential for large fines is acting as a big incentive to launch unprecedented numbers of new electric or plug-in hybrid models over the next year. Some manufacturers may fall short and have to pay fines or lose market share as they forego sales of high-emission models," James Leaton, senior credit analyst at Moody's, said in the report.
Volkswagen, Fiat Chrysler, Ford, Hyundai and Kia are the most exposed, based on their current gap from 2020/21 targets, he said.
Any fines would be credit negative for Hyundai and Kia, which both have a Baa1 negative rating, the report said.
Foreign capital inflows indicate room for S. Korean monetary policy
Gas stations in S. Korea becoming logistics hubs for couriers
BOK's rate cut on the table amid increased downside risks
Tech startups bring changes to conservative construction sector
S. Korea accelerating move to expand FTA territory amid protectionism