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

(ATTN: UPDATES share prices in 2nd para; ADDS more details in last para)
SEOUL, March 31 (Yonhap) -- Hyundai Motor Co. and its affiliate Kia Motors Corp.
rose sharply Tuesday 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 close at 55,500 won (US$40.12) on the Seoul
bourse, and Kia advanced 5.96 percent to 8,530 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."
The U.S. president gave GM, the U.S.'s largest carmaker, 60 days to develop a new
strategy and said Chrysler has 30 days to complete a partnership with Italy's
Fiat SpA after rejecting initial plans submitted by the carmakers.
sam@yna.co.kr
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