Hyundai to invest in greener cars

Reuters
Published: March 1, 2009

SEOUL: Hyundai Motor Group said Sunday that it planned to invest nearly $6 billion this year, similar to 2008, and would focus on developing environmentally friendly automobiles as it eyes longer-term growth beyond the current crisis.
The global auto industry is reeling under an unprecedented demand slump that has resulted in production cuts, layoffs and government bailouts. General Motors posted a loss of nearly $31 billion for 2008 on Thursday.
Hyundai Motor Group, which comprises Hyundai Motor and Kia Motors, said it would invest about 9 trillion won, or $5.9 billion, this year, similar to its spending last year.
Of the planned investment in 2009, 6 trillion won would be spent on facilities, with the remaining 3 trillion won earmarked for research and development, Hyundai said.
Hyundai is considered better positioned than its Japanese and U.S. rivals to weather the global recession thanks to the weaker won, which makes Hyundai's cars less expensive in overseas markets, and a lineup of lower-priced cars.

Hyundai's total global vehicle sales fell 27 percent in January year-on-year, but its U.S. sales rose nearly 10 percent.
The group, which has taken steps to cut costs and trim executives' salaries, said its research efforts would focus on greener vehicles as demand for cars that are less polluting and more fuel efficient was expected to surge once the global economy improved.
Hyundai said it would spend 2.4 trillion won over the coming years on environmentally friendly cars. It aims to release a gasoline-electric hybrid car model in July in South Korea, its home base. The group also plans to develop a commercial fuel-cell car model by 2012.