Hyundai, Kia gain as U.S. automakers pressed to restructure

SEOUL, March 31 (Yonhap) -- Hyundai Motor Co. and its affiliate Kia Motors Corp. rose sharply Tuesday morning on speculation that their market shares in the U.S. may increase as U.S. President Barack Obama put more pressure on General Motors Corp. and Chrysler LLC to conduct massive restructuring.

Hyundai jumped 5.09 percent to 55,700 won (US$39.7) on the Seoul bourse as of
10:54 a.m., and Kia advanced 4.22 percent to 8,390 won.
Obama on Monday gave GM and Chrysler deadlines for the restructuring, sparking
speculation that the Korean automakers may expand their market share in the U.S.
The worst financial crisis since the Great Depression has sapped car demand, with
sales falling 39 percent so far this year in the U.S. By contrast, Hyundai's U.S.
sales have gained 4.9 percent.
"More pressure will be put on the U.S. automakers to conduct thorough
restructuring," said Seo Sung-moon, an analyst at Korea Investment & Securities
Co. "U.S. consumers are likely to be wary of buying cars made by GM and Chrysler,
given that they may face bankruptcy."