Hyundai Motor to invest 73 billion USD by 2018

2013_02_Hyundai FCEVHyundai Motor Group, the world’s fifth-largest automaker, said Tuesday it would invest about 81 trillion won ($73 billion) over the next four years to improve facilities, expand production lines, develop core technologies for smart and green cars, and construct its headquarters building. Under the investment road map, the automaker is expected to spend an annual average of 20.2 trillion won through 2018, which would surpass its previous high of 14.9 trillion won in 2014.Hyundai Motor’s new investment plan came one day after President Park Geun-hye called on conglomerates to expand investments in order to bring about an economic turnaround.

It will spend 31.6 trillion won on research and development projects. The large-scale R&D investments are aimed at obtaining key technologies needed to produce eco-friendly and smart vehicles, which are expected to see intensified competition, according to the group. Regarding investments in future car development projects, the company will invest 11.3 trillion won by 2018 to develop eco-friendly vehicles such as hybrid electric cars and fuel cell vehicles. Talent acquisition is also a crucial part of Hyundai Motor’s new investment plan. The company will hire 7,345 R&D specialists over the next four years.

For full article, see Korea Herald.

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Hyundai and Kia go it alone to strengthen eco-friendly, luxury car operation

Hyundai Motor Co. and Kia Motors Corp., South Korea’s two largest carmakers, are stepping up their eco-friendly and luxury vehicle operations as rivals from India and China try to catch up in the global market through mergers with established players, industry watchers said Friday. The South Korean companies, flagships of Hyundai Motor Group, have become the world’s fifth-largest manufacturers with combined sales expected to reach 8 million units this year. They, however, remain on the fringes in the eco-friendly vehicles and high value-added luxury car markets that have grown the most in recent years.

Both car makers have released hybrid cars in the past, but they have not been able to wrestle buyers away from Japanese rivals like the Toyota Leaf hybrid. Hyundai released the world’s first mass-produced fuel cell electric vehicle this year, with Kia taking similar steps with the Soul electric vehicle (EV). Yet, it will take time to determine if they are a success.

For full article, see Korea Times.