April 25, 2024

• 

[THE INVESTOR]  Hyundai Motor  Group has convened all the heads of its overseas units for a biannual meeting to discuss strategies for next year’s business, amid declining profits of South Korea’s largest automaker, industry sources said on Dec. 19. 

The 60 heads of both Hyundai Motor and Kia Motors’ overseas units gathered from Dec. 15 to 20 at the auto conglomerate’s headquarters in Yangjae-dong, southern Seoul. 

During the meeting, the officials reviewed this year’s sales performances in domestics and overseas market and set business goals for next year. The five-day meeting is longer from the usual two-day meetings held in the past, indicating the urgency of the automaker’s ongoing adversities. 

Hyundai Motor Group Chairman Chung Mong-koo speaks during this year’s kick-off meeting in January.

The decisions from the meeting will be reported to Hyundai Motor Group Chairman Chung Mong-koo. The approved plans will be announced on Jan. 2 at the group’s New Year kick-off meeting. 

Industry watchers project the management will bring up strategis focusing on its luxury Genesis brand and eco-friendly car line Ioniq to gain back market share. Hyundai Motor Group is expected to set the annual sales target around 8.2 million units next year, slightly up from this year’s 8.13 million vehicles. 

The meeting comes as the auto giant may fall short of its production target this year at both home and abroad, weighted down by the labor strike and protracted economic slump. 

At home, Hyundai Motor and Kia Motors’ combined market share has plummeted below 60 percent in Oct., for the first time since the auto conglomerate was founded in 2002, due to heated competition from both local and foreign rivals. 

Donald Trump’s election as the next US president has raised uncertainty for the auto conglomerate that is highly dependent on the all-important US market. 

If Trump, a strong advocate of trade protectionism, pushes for a revision of the free trade pact between Korea and the US or raises non-tariff barriers and imposes high tariffs on car imports from Mexico like he had promised, Hyundai and Kia may suffer massive revenue losses. 

Korea’s latest decision to deploy the US-made missile defense system THAAD in the region is also sparking concern for the automaker in China, the world’s largest automotive market. China has been vocal about its opposition to the deployment, implementing strict countermeasures against South Korean businesses. 

Hyundai Motor opened its fourth Chinese plant in Cangzhou in October, and is slated to open its fifth plant in Chongqing next year.

By Ahn Sung-mi (sahn@heraldcorp.com)