Hyundai Motor chief sees opportunity in global auto crisis

SEOUL, March 6 (Yonhap) -- Hyundai Motor Co. Chairman Chung Mong-koo said Friday
he will embrace the worst crisis the global automobile industry has seen in
decades as an opportunity to boost sales and raise the company's profile
worldwide.

"The global auto industry is now in the midst of a fierce battle for survival,"
Chung told an annual shareholder meeting of Kia Motors Corp., an affiliate of
Hyundai.
"We will overcome the global auto crisis by putting our priority on increasing
sales," the 71-year-old chairman said. "The crisis, in other words, is an
opportunity for innovation."
Undeterred by the deepening global economic slump, Chung said Hyundai and Kia,
which together form the world's fifth-largest automaker, will "aggressively
develop new growth engines" by spending more on research and improving quality.
Analysts say Hyundai is better positioned to weather the global economic crisis
because of its line-up of cheaper cars and the South Korean currency's weakness
against the U.S. dollar.
Last month, Hyundai saw its total sales fall 3.2 percent to 203,236 vehicles. But
the carmaker has been relatively content as it is faring considerably better than
its Japanese and American counterparts in the U.S. market, where vehicle sales
plunged to their lowest level in 27 years as the economic recession deepened.
Hyundai posted a 1.5 percent drop in U.S. auto sales last month, compared with a
39.8 percent plunge at Toyota Motor Corp. of Japan and a 38-percent drop at Honda
Motor Co.
Hyundai is taking a bigger slice of the slumping U.S. market, helped by its
generous incentive program that allows American customers experiencing financial
difficulties to return their vehicles free of charge.
Under the program, those who purchased a Hyundai vehicle but can not make their
payments due to layoffs, personal bankruptcy or accidental health issues can
return the vehicle within a year of purchase.
Meanwhile, Chung officially resigned as director of Kia's board on the same day.
(END)