Assessment of the Impact of Large-Scale Automobile Recalls on Hyundai and Porsche's Stock Prices and Brand Values

I will now prepare a complete analysis report for you.

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Pursuant to the recall plan announced by the

on , four automakers will voluntarily recall in the Korean market, covering [1]. The key manufacturers involved in this recall include:

Manufacturer	Main Affected Models	Main Defect Type
Hyundai Motor	Avante (Elantra) compact sedan	CVT continuously variable transmission system malfunction
Kia Motors	Multiple models	Various component defects
Porsche Korea	Cayenne sporty SUV	Surround view camera system defect
Mercedes-Benz Korea	E200 sedan	Infotainment control system software issue

Notably, the recall coincides with the key earnings reporting period for the two companies. Hyundai Motor will release its

on [2], while Porsche recently reported disappointing Q3 results with a [3].

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Indicator	Hyundai Motor (005380.KS)	Porsche (P911.DE)
Current Price	KRW 409,500	EUR 43.60
Daily Change	-0.49%	+0.51%
5-Day Performance	+17.48%	-6.24%
1-Month Performance	+35.99%	-8.06%
Year-to-Date Change	+84.68%	-26.92%
52-Week High	KRW 413,500	EUR 63.32
52-Week Low	KRW 175,800	EUR 39.58
Market Capitalization	KRW 855.3 trillion	USD 39.72 billion

From a technical analysis perspective, Hyundai Motor is currently in an

[4]:

• RSI (14)
  : In the overbought risk zone
• KDJ Indicator
  : K value 92.2, D value 85.7, indicating an overbought warning
• MACD
  : Shows a bullish crossover but with weakening momentum
• Beta Coefficient
  : 0.94, high correlation with the broader market
• Trend Judgment
  : Sideways consolidation / no clear trend
• Price Range
  : Support level at KRW 322,325, resistance level at KRW 418,775

Porsche’s stock price has performed weakly over the past month[3]:

• Down approximately 31% from its 52-week high
• In a clear downtrend
• Bearish market sentiment
• Average daily volume maintains at 534,000 shares

Based on empirical analysis from academic research, the negative impact of automobile recalls on stock prices has the following characteristics:

According to the 1985 study by Jarrell and Peltzman on 63 major automobile recalls between 1967-1981, the

[5]. A 2015 study by Gao et al. found that U.S. automobile recalls see on the announcement date, with a negative average cumulative abnormal return (CAR)[5].

• Functional issues
  (such as transmission, software systems) have a more negative impact than cosmetic issues
• Safety-related components
  (such as airbags, brake systems) lead to sharper stock price declines
• Larger recall scales
  result in more negative market reactions

• Involves approximately 170,000 units (estimated 50% of total recalls), a
  medium-to-large scale recall
• CVT transmission issues are
  functional defects
  , not cosmetic or comfort-related
• Given Hyundai Motor’s recent 57% stock price increase over the past month, it may face
  profit-taking pressure in the short term

• Approximately
  17,000 units
  (estimated) of Porsche Cayenne are affected by surround view camera system defects
• While the recall scale is relatively small, as a
  luxury brand
  , Porsche is more sensitive to brand image
• Given Porsche’s stock price has fallen approximately 31% from its high, negative sentiment may
  extend the decline

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Dimension	Hyundai Motor	Porsche
Brand Positioning	Mass market	Luxury/ultra-luxury market
Customer Price Sensitivity	High	Low
Brand Premium Ability	Limited	Extremely high
Recall Tolerance	Relatively high	Extremely low
Reputational Vulnerability	Medium	Extremely high

According to academic research, the impact of automobile recalls on brand value is mainly transmitted through the following channels:

1. Decline in consumer trust
   — Research shows that a single recall can reduce consumer trust by 15-25%
2. Delayed sales
   — Some potential buyers may postpone purchase decisions
3. Negative media coverage
   — Damages brand image

1. Brand value devaluation
   — Rating agencies such as Interbrand may downgrade brand valuations
2. Decline in used car residual value
   — Resale prices of recalled models may drop by 5-10%
3. Weakened customer loyalty
   — Repeat purchase rates may decline

As a luxury brand, Porsche faces higher brand risks:

• Luxury car customers have
  extremely low tolerance for quality defects
• Brand image is its
  core competitive advantage
• Competitors (such as BMW, Mercedes-Benz) may exploit the recall for marketing attacks
• Historically, the 2015 Volkswagen emissions scandal wiped out approximately one-third of the brand’s value[5]

As a mass-market brand, Hyundai Motor has certain

:

• Large-scale recalls are relatively common in the industry, and consumers have formed certain psychological expectations
• Hyundai Motor has established a good market reputation in recent years through quality improvements and design innovations
• If the recall is handled
  quickly and transparently
  , it may instead demonstrate the company’s sense of responsibility

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Cost Item	Hyundai Motor Estimate	Porsche Estimate
Parts Replacement	KRW 15-20 billion	EUR 5-8 million
Labor/Repair Costs	KRW 5-8 billion	EUR 2-3 million
Logistics/Administrative Costs	KRW 3-5 billion	EUR 1-1.5 million
Owner Communication/Compensation	KRW 2-3 billion	EUR 0.5-1 million
Total	KRW 25-36 billion	EUR 8.5-13.5 million

According to academic research, indirect costs are often

[5]:

1. Stock market capitalization loss
   — Cumulative abnormal returns (CAR) in the 3-10 trading days after the recall announcement
2. Short-term sales decline
   — Expected to affect terminal sales for 1-2 months
3. Increased marketing costs
   — Additional marketing activities may be required to restore brand image
4. Rising future insurance/compliance costs

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From Q4 2025 to early 2026, the global automotive industry is facing a

:

• Global automobile recall volume reached
  8.5 million units
  in Q3 2025[6]
• In the U.S. market alone, Porsche has announced a recall of
  173,000 vehicles
  including Cayenne (reverse camera issue)[7]
• Hyundai Motor has recalled approximately
  51,000 Tucson vehicles
  in the U.S. (fire risk)[8]
• Volkswagen Group (including Audi) has recalled
  356,000 vehicles
  in the U.S.[7]

Academic research shows that the negative impact of recall events may

[5]. For this Korean market recall:

• Kia Motors
  — Affiliated with the Hyundai Group, may be affected by association
• Mercedes-Benz, BMW, Audi
  — Fierce competition in the luxury brand segment, may gain customers from Porsche’s recall
• Toyota, Honda and other Japanese brands
  — May attract consumers who have lost confidence in Korean brands

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• P/E ratio of only 9.72x, lower than the industry average[2]
• 2025 sales reached 4.14 million units, close to the target
• 2026 sales target of 4.16 million units, representing a 3.2% year-over-year increase
• Strong performance in emerging markets such as India

• Direct and indirect costs of the recall event
• Profit-taking pressure before the earnings report release on January 29
• Impact of KRW exchange rate fluctuations on exports
• Capital expenditure pressure from the global electric vehicle transition

• Short-term overbought, requires consolidation
• Uptrend remains intact but adjustments are needed
• Support level: KRW 322,325; Resistance level: KRW 418,775

• Q3 EPS of USD -0.66, far below the expected USD 0.25[3]
• Q3 revenue of USD 8.71 billion, lower than the expected USD 10.02 billion
• P/E ratio as high as 41.92x, valuation under pressure
• 26.92% year-over-year stock price decline, weak performance

• Overall slowdown in luxury car market demand
• Sales pressure in the Chinese market
• Negative impact of the recall event on brand image
• Strategic uncertainty of the Volkswagen Group

• In a downtrend
• Near its 52-week low
• May test the support range of EUR 39.58-43.13 in the short term

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The impact of this 340,000-vehicle recall in the Korean market on Hyundai Motor and Porsche varies significantly:

Assessment Dimension	Hyundai Motor	Porsche
Direct Impact	Medium	Small
Brand Sensitivity	Medium	High
Valuation Pressure	Low	High
Market Sentiment	Bullish-leaning	Bearish-leaning
Overall Risk	Medium	High

Investors should pay attention to the following subsequent developments:

1. Recall execution progress
   — Repair completion rate and owner response
2. Q4 earnings reports
   — Hyundai Motor on January 29, Porsche will release its quarterly results subsequently
3. Sales data
   — Changes in Korean and global sales in February-March
4. Analyst rating adjustments
   — Whether major investment banks adjust target prices or ratings
5. Subsequent recall expansion
   — Risk of the issue escalating

From a long-term perspective, a properly handled recall event typically has a

on mature automakers. The key lies in how the company responds:

• Rapid response
  — Timely notification to owners and provision of free repairs
• Transparent communication
  — Clear explanation of the problem cause and solution
• Continuous improvement
  — Establishment of a stricter quality control system

Hyundai Motor, with its strong fundamentals and low valuation, has good

; although Porsche faces greater brand risks, its luxury positioning and loyal customer base should also support long-term development.

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[1] Korea JoongAng Daily. (2026-01-15). Four carmakers to recall over 340,000 vehicles due to faulty parts. https://koreajoongangdaily.joins.com/news/2026-01-15/business/industry/Four-carmakers-to-recall-over-340000-vehicles-due-to-faulty-parts/2500850

[2] Jinling API Financial Data — Hyundai Motor Company Profile and Real-Time Quotes

[3] Jinling API Financial Data — Porsche Company Profile and Real-Time Quotes

[4] Jinling API Technical Analysis — Hyundai Motor Technical Indicators

[5] Guo, X. (202X). Impact of Product Recalls on Stock Price and the Role of Brand. University of Victoria Economics Department.

[6] Consumer Protection Law Group. (2025). Historic Automotive Recall Crisis Affecting 8.5+ Million Vehicles.

[7] Reuters. (2026-01-06). Volkswagen and Porsche recall over 500,000 US vehicles for rearview camera glitch.

[8] Yahoo Autos. (2025-12). Hyundai recalls over 50,000 vehicles; fire risk warning issued.

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: January 15, 2026
: Jinling API Financial Data, Reuters, Korea JoongAng Daily, SEC Filings, Academic Research Papers