A view of the new SUV vehicle Palisade, released by Hyundai Motor. (Photo: Hyundai Motor)

Hyundai Motor is benefiting from the release of the new SUV vehicle Palisade, capturing an opportunity to turn around its sagging business performance. Even though the automaker failed to reenter the “1 trillion won club” in quarterly operating profit, Hyundai Motor managed to cruise to a charming performance by logging more than 800 billion won in operating profit in the first quarter of this year, according to a consolidated financial statement.

The figure was a departure from previous operating profits that had once plunged to 200 billion won. In the statement, released on April 24, Hyundai Motor said the company chalked up 824.9 billion won in the first quarter of 2019 in operating profit, a 21.1 percent jump from the same period of last year, which saw 681.3 billion won. The automaker posted 23.987 trillion won in sales, up 6.9 percent over the same period last year, and 953.8 billion won in net profit, a 30.4 percent jump.

The Q1 operating profit surpassed market consensus of 770 billion won.
Despite sagging sales in major markets such as China and the United States, the release of new cars such as Palisade in Korea led the rebound. Unlike market expectations of a slight rise in overall global sales, Hyundai Motor saw global sales decline 2.7 percent to 1,021,377 units in the first quarter of the year.

On the other hand, Hyundai Motor saw domestic sales surge 8.7 percent to 183,957 units over the same period of last year on the back of new cars such as Palisade and the brand Genesis G90.

General Manager Huh Byung-gil, in charge of sales at Hyundai Motor, told a conference call that the rising sales of newly released cars led to a mixed product portfolio and improved profitability, and rising sales of SUVs, coupled with the popularity of the new SUV Palisade and the conventional Santa Fe, contributed to improving 1st quarterly profitability.

Adding to the positive impact of the Palisade, the newly released all-new Sonata is on a roll with pre-sales standing at some 12,000 units. Based on 1st quarter booking records, Hyundai Motor set the 2019 sale target for the Sonata at some 94,000 units.

On top of the release of the Palisade and the new Sonata, Hyundai Motor plans to maintain growth momentum with new cars under the brand Genesis on the market in the second half. The automaker has a strategy of releasing GV80, Genesis’ first SUV model, and the new sedan model of G80, not only to improve profitability, but also to take up the gauntlet against imported luxury brands.

The Palisade is predicted to be on a roll in the North American market starting the 3rd quarter of the year. The automaker is deliberating with its trade union ways of additionally expanding production of the Palisade targeting North Americas.

Hyundai Motor Opens Genesis Studio at Hudson Yards, an Emerging Hub for Manhattan

Hyundai Motor is creating a studio to pitch its luxury brand Genesis at Manhattan, New York. It is the first time that an experience facility has been installed in the United States to showcase the car brand’s philosophy.

Hyundai Motor unveiled a plan to create a Genesis studio at Hudson Yards, a neighborhood on the West Side of Midtown Manhattan. Hudson Yards has emerged as a new landmark of New York under a project to redevelop the neighborhood in Manhattan, which was once an obsolete railway site. The complex, encompassing deluxe apartments, a plaza, hotels, shopping centers and offices, made its debut last March and is quickly becoming a hub in that area of New York.

The Genesis studio will be situated at the deluxe shopping mall Shop & Hundson Yards. Global brands such as Louis Vuitton and Cartier as well as fast fashion brands Zara and H&M have moved into the eight-story shopping mall. Hyundai Motor has secured a space to create the Genesis Studio. The Korean automaker plans to flesh out details, including how to operate the space and the timing of the opening this year.

The upcoming Genesis Studio is expected to play a role similar to the one in Hanam, Gyeonggi-do. The studio in Hanam, which made its debut in 2016, is situated at the multi-purpose shopping mall Starfield. Genesis’s flagship car G90 and other new and concept cars embracing the brand’s philosophy and direction are on display.

Doors of all cars and colors are displayed together, a step to help customers find better matches.