Chairman Chung Mong-koo of Hyundai Motor. (Photo:HMC)

Hyundai Motor Group has decided to take on its falling shares price head first.

 According to the group, checkups on the management of key affiliates such as Hyundai Motor, Kia Motors, Hyundai Mobis, Hyundai Glovis, Hyundai Steel and others will be made while conducting IR sessions for institutional investors at the same time.

 The two car makers also announced that their fuel consumption rate per liter will be boosted to 15.4 km by 2020 from the current 12.3 km, an improvement of 25 percent, in line with the strategies put together under Chairman Chung Mong-koo’s leadership at a meeting of top executives of the group’s affiliates. The key meeting came after sessions with analysts of major securities firms on Nov. 5.

 Chairman Chung and key leaders of the group ordered the affiliates leaders to do whatever it takes to calm down jittery investors by publicizing the sales records of the auto companies in the global market and the strategies for investments in R&D activities.

 The group’s key managers feel that the share prices of their major affiliates fell due to investors getting the wrong signals, despite strong fundamentals, including robust sales figures and funding situations.

 Both Hyundai and Kia invited key institutional investors to their IR sessions Nov. 6-7 at Shilla Hotel. Hyundai Mobis plans to hold its own IR sessions in Hong Kong and Singapore for overseas institutional investors from early this week to Nov. 7.

 On Nov. 6, share prices of Hyundai Motor jumped 7,500 won per share or 4.97 percent to 158,500 won per share, which analysts chalked up bargain hunting and the effect of the IR sessions.

 The top managers of the group have come to a point where they can no longer stand still, as the group’s affiliates falling have been hurting the image of the group.

 High-ranking officials of the group inspected the auto maker affiliates, funding flows, and the impacts from the low yen, but they found nothing seriously wrong in their fundamentals. There was, however, concern about the outlook of the auto makers by investors. They felt the performances of major affiliates -- such as Hyundai Motor and Kia Motors -- in the second and third quarters have not satisfied the market. The market had been worried the group paid such a high price for land, the former head office of Korea Electric Power Corp., at around 10 trillion won, and it could hurt the financial position of the group. The group also needs money to develop the site, which would be a huge project. Facilities include offices, shopping malls and apartment buildings.  

 Officials of the group brushed off concerns on its finance, saying that both of its automaker affiliates have been doing well at home and overseas. Hyundai Motor’s overseas sales have been expanding annually since 2010, from 5.7 million cars sold, to 6.6 million cars in 2011, 7.13 million cars in 2012 and to 7.33 million cars in 2013. The car maker has also increased its cash holdings to around 25.6 trillion won at the end of the third quarter this year, compared to 21.7 trillion won during the same period last year.

 With regard to the motor company’s overseas sales, executives would not express concern, saying public recognition of the excellent quality of their cars overseas has been rising, in particular in the U.S., and the carmaker will avoid getting into a price war. The goal is to sell cars with no discounts.