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April 8, 2008 |
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HYUNDAI MOTOR: Business Conditions for U.S. Market "Difficult" Kim Jong-eun, chief executive of Hyundai Motor America, said the business conditions for its key American market are "difficult" amid high-flying oil prices and ongoing financial turbulence, Antara News reports. Mr. Kim told Antara that they plan to overcome the difficult conditions by strengthening ties with dealers. According to the report, analysts say an economic slowdown in the world's largest automobile market will drag down demand for new cars this year, following the subprime mortgage crisis. Hyundai Motor, the report notes, already missed its 2007 sales target in the U.S. About Hyundai Motor Headquartered in Seoul, South Korea, Hyundai Motor Company -- http://www.hyundai-motor.com/ -- has been selling cars in the United States since 1986, but it only started selling its heavy trucks stateside in 1998. Hyundai produces 14 models of cars and minivans, as well as trucks, buses, and other commercial vehicles. The Company re-established itself as Korea's leading carmaker in 1998 by acquiring a 51% stake in Kia Motors -- since reduced to about 45%. The Company also manufactures machine tools for factory automation and material- handling equipment. The Troubled Company Reporter - Asia Pacific reported that the Hyundai Automotive Group is facing its deepest crisis since chairman Chung Mong-koo took over in 1999, with problems like the falling United States dollar, high oil prices and union demands aggravated by a sweeping criminal investigation regarding the carmaker's alleged creation of slush funds that were used by at least two lobbyists to bribe government officials for business favors, including having KRW55 billion of Hyundai's bad debts written off. Chairman Chung was indicted early in May 2006 for fraud charges. Some of the group's official business has been on hold since the probe on the slush fund started and several top executives were summoned for questioning. On Feb. 5, 2007, a South Korean court handed down the sentence to Mr. Chung for illegally raising US$110 million in slush funds and bribing government officials. Mr. Chung was released on bond and continues to run the auto conglomerate. |
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Today's Top Stories have been selected from the Troubled Company Reporter - Asia Pacific. To receive the Full TCR-AP please CLICK HERE.
