S. Korea's auto output to fall 4.8 pct in 2008

(ATTN: RECASTS lead; UPDATES throughout with 2008 forecast, quotes, details)
SEOUL, Dec. 4 (Yonhap) -- South Korea's vehicle output is expected to fall 4.8
percent on-year this year on a global economic downturn and weaker domestic
demand, in what would be the first annual decline since 2001, a trade association
said Thursday.
The combined production of cars, trucks and buses by Hyundai Motor Co., Kia
Motors Corp. and other local automakers is expected to total 3.89 million
vehicles this year, compared with 4.08 million units last year, said an official
at the Korea Automobile Manufacturers Association.
"The U.S.-sparked global economic slump is rapidly spilling over into the local
auto industry," said Koo Hee-cheol, the KAMA official.
"Also, weak consumption and tight credit at home continue to weigh on the auto
market," Koo said.
Previously, the KAMA had predicted the nation's vehicle output to grow to 4.2
million units this year.
It would be the first time the South Korean auto industry has faced a contraction
since 2001, when vehicle output stood at 2.94 million units, Koo said.
Domestic sales are forecast to fall 2.4 percent to 1.19 million units, and
exports are likely to fall 5.2 percent to 2.7 million vehicles, according to Koo.

In the first 11 months of this year, South Korea's auto output fell 4.5 percent
from a year earlier to 3.57 million units, the industry group said in a statement
earlier in the day.
Last month, the nation's auto production dropped 18.2 percent from the same month
to 328,178 units, it said.
To reduce rising inventories and cut costs, South Korean automakers, led by
Hyundai Motor Co. and its affiliate Kia Motors Corp., are taking various steps by
slashing daily work hours or idling their plants at home and overseas.
(END)