"We have to make the Genesis models a success in the United States and spearhead eco-friendly cars,” Hyundai Motor Group Chung Mong-koo said.
Chairman Chung made the remarks at a first-half meeting of heads of the group’s overseas operations at the group’s headquarters in Yangjae-dong, Seoul, on July 18. Such a meeting is to be convened twice every year in July and December. Participants are put on the highest alert since the evaluation of half-year business performances is conducted.
About 60 of the business group’s executives, including CEOs of major divisions and heads of overseas operations, participated in the latest meeting. The gathering was overshadowed by the group’s disappointing sales in the first half of this year. Hyundai Motor and Kia Motors sold 3.85 million units, a 2.4 percent decline from the same period last year. In particular, the group saw overseas car sales drop a whopping 4.2 percent.
Chairman Chung gave words of encouragement instead of reprimands, and focused on an evaluation which concluded that they had struggled to cope with downturns in emerging economies, the group’s mainstay markets.
Chairman Chung stressed the importance of endless innovation to survive an era of uncertainty, saying that hard external conditions are inevitable factors, not variables. Chung told the participants not to be swayed by market changes by ramping the analysis and prediction of market changes. He called for more active global after-sales services, more creative marketing for newly launched cars and the successful operation of Kia Motors’ recently opened plant in Mexico; as well as Hyundai Motor’s fourth plant in Changzhou, Hubei Province, China, which is to be inaugurated in October.
Last but not least, Chairman Chung stressed quality and customers. He called for the optimization of production and marketing systems to supply the right cars that customers want.
The G80 and G90 models badly need to make a splash in the U.S. luxury car market to strengthen the Genesis brand’s standing.
Chairman Chung urged the participants to get a jumpstart on eco-friendly cars by expanding lineups and redoubling production and marketing capabilities. In his speech at a ceremony to launch the 2016 business year, he stressed the need for a shift from quantitative growth to qualitative growth.
Chung’s latest stressing of the importance of the Genesis and eco-friendly cars is in line with his previous statements.
Hyundai Motor Announces 2016 1H Business Results
Hyundai Motor Company, South Korea’s largest automaker, announced its business results for the first half of 2016. Sales volume and operating profit declined from the same period last year due to a decrease in exports, as well as weak currencies and an economic recession in emerging markets.
For the first six months of 2016, sales revenue increased 7.5 percent to 47.03 trillion won (autos: 36.66 trillion won / finance and others: 10.37 trillion won) from a year earlier owing to sales increase of SUVs and GENESIS models. Operating profit fell 7 percent to 3.10 trillion won and net profit showed a 6.4 percent decrease to 3.53 trillion won. Hyundai Motor Company’s cumulative global sales for the first six months totaled 2,393,241 units (Korea: 350,006 / overseas: 2,043,235), a year-on-year decrease of 0.9 percent. Slowing growth in emerging markets and impact from currency fluctuations have been the main culprit for the global sales drop. In the second quarter alone, sales revenue posted 24.68 trillion won with global sales of 1,285,860 units and operating profit increased 0.6 percent to 1.76 trillion won, from a year earlier.
Hyundai Motor forecasts that an unfavorable business environment is likely to continue in the second half. In particular, the company anticipates further uncertainties in business conditions after the Brexit referendum, which took place last month.
Nevertheless, Hyundai Motor will continue its effort to focus on strengthening competitiveness and product quality in the global automotive market. To do so, Hyundai Motor is planning to boost sales with SUVs and strategic models.
In addition, Hyundai Motor will strengthen growth momentum with the luxury brand GENESIS models, G90 and G80, and further develop state-of-the-art technologies within new models such as the IONIQ, which is offered in three eco-friendly powertrain (Hybrid, Electric, Plug-in Hybrid).
Hyundai Motor will continue its cooperation with suppliers and actively carry out more values to customers and stakeholders alike. Hyundai Motor also strives to build a more shareholder-friendly environment by increasing transparency and shareholders’ value.
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