Headquartered in Näfels, Switzerland, NETSTAL provides injection moulding machines in the beverage (PET preforms and caps), medical, and thin-wall packaging markets.

The automaker initially became aware of this issue in September, but the nature of the concern made it challenging to investigate. Due to the loss of most trim pieces, conducting a thorough inspection for problems proved to be difficult.

Although NETSTAL's current revenue sits below Krones' group level at just over €200m in the 2023 fiscal year, the company projects to close this gap in the coming years. Notably, NETSTAL contributed nearly 20% to the KraussMaffei Group's 2023 total sales.

Krones sees significant potential in integrating NETSTAL's technology and market reach, allowing them to offer more specific solutions to customers across the entire beverage and liquid food value chain.

Mechanical engineering specialist Krones AG has finalised the acquisition of NETSTAL Maschinen AG, Swiss-based provider of injection moulding solutions, from KraussMaffei for €170 million.

“This transaction is a milestone in the long history of Netstal. Krones opens up strategic perspectives that were previously not possible. The potential for more customer benefits and growth in the beverage sector is obvious. The opportunities in the medical and thin-wall packaging applications are equally exciting. It is a pleasure for me to continue the strategic direction we have taken together with Krones to an even greater extent," added Renzo Davatz, CEO Netstal.

Kia is recalling 40,426 Sportages and 60,623 Carnivals in the U.S. over a manufacturing error that could lead to the parts coming loose. While the molding isn’t necessary for the safe operation of the vehicle, if it peels off while it’s on the highway, the lost pieces could become a hazard to other road users.

Kia will start reaching out to owners on March 15, 2024, and they will be asked to return their vehicle to a dealer, where they can be inspected. Where necessary, the roof molding will be replaced by parts with retaining clips that do not interfere with excessive sealer. In addition, it has improved its assembly processes and developed additional training to ensure that the moldings stay on the vehicles. Owners who paid for repairs out of pocket will be reimbursed by Kia.

KraussMaffei CEO Chi Zhang said: "The sale of NETSTAL is part of our long-term plan to realign KraussMaffei strategically, organisationally and on the global market. In future, we want to concentrate fully on our core business and new growth markets, strengthen the KraussMaffei core brand and focus the Group accordingly. At the same time, the sale of NETSTAL gives us the leeway to make further investments, for example in digitisation and the development of new machines."

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Eventually, Kia determined that interference with the roof molding retaining clips due to excessive roof panel sealer, or improper installation of the pieces could lead them to come off the vehicle, and it has decided to launch a recall campaign.

The purchase deal was first announced on 29 January 2024 and signed on February 6, strengthening Krones' position in the beverage, medical, and thin-wall packaging markets.

Krones AG has been a long-standing NETSTAL customer that manufactures machines for filling and packaging beverages and liquid foods. Additionally, Krones is also acquiring Netstal Deutschland GmbH, a sales and service subsidiary based in Stuttgart, along with eleven other sales and service units across US, South America, Europe and Asia.

As part of the agreement, around 530 NETSTAL employees will join Krones from KraussMaffei, ensuring both continuity and valuable expertise. All existing NETSTAL jobs will be retained. NETSTAL will operate as a separate, independent entity within the Krones Group, led by CEO Renzo Davatz.

However, Kia received enough complaints from owners to know it had to investigate. To find out what happened, it intentionally installed roof molding incorrectly on a test vehicle, and found that it could come off at speeds of around 90 mph (145 km/h).

Owners of the 2022-2024 Kia Carnival and the 2023-2024 Sportage may want to listen for a rattle next time they’re driving, because it may be the first warning sign that the molding on their roof could come flying off at speed.