Kia and Hyundai forecast slowest global sales growth in 9 years

Posted on 1/4/2015 4:43:45 PM

Hyundai Motor Company and Kia Motors Corporation expects weak sales growth in nine years, and who do not have the ability to increase production to major markets and increased competition.

The combined company will deliver increased by 2.5 percent to 8.2 million by 2015, Chung Mong-koo, both carmakers, his New Year speech in Seoul, said the chairman of the staff.

This will be the slowest growth since 2006 forecast of 8.2 million units, an estimated average of five analysts surveyed by Bloomberg. Hyundai and Kia's "positive response" Global economic uncertainty and a weaker yen makes Japanese rivals advantages, and can "easily" in order to achieve the 2015 target, Chung said, 76 years.

Carmaker plans to increase production by 38% the total in China in 2018 to meet the demand, and introduced Sportage SUV Tucson and later, in order to maintain its market share version.

"Car manufacturers have a slow 2015, neither the space to increase production, but not planned for this year a new plant or expansion," Bong too high an analyst at HI Investment & Securities in Seoul, said before Chung views. "What is crucial, next year is to maintain market share and measure and the largest market reaction, their new SUV models."

Hyundai plans to sell 5.05 million in 2015, while Kia's goal is to achieve 3.15 million units, the two companies said in separate statements.

Chinese output

Hyundai Motor and its Chinese partner BAIC Motor Company in China produced 57% will expand by adding two floors each annual production capacity of 300,000 Chongqing and Cangzhou City, Hebei Province, said Dec. 30.

Kia will be in Jiangsu Province from the current 300,000 capacity increase in China's third plant 450,000 units by 2016.

Modern production of more than 1 million cars in China before 11 months of 2014, 7.6 percentage points from a year earlier, standing on track to meet the target annual production of 1.08 million units. KIA Built-in 610,711, compared to January-November, its production target of 63 million a year.

In the Hyundai and Kia shares have fallen 22% and 11% respectively, by September 17, Korea Electric Power Corporation said yesterday, Hyundai Motor Group has won the auction in central South Korea in the region's premier property ownership southern state-owned companies.

Bid for the 10.6 trillion won (US $ 9.6 billion), triple assessment of the price.

Enhance the image

Earn land auction shows the Group's image has improved the number of sales worldwide will help Hyundai and Kia, Chung said in Seoul on Friday.

Hyundai will pay the total price of the land, followed by 55 percent of Hyundai Mobis companies, 25%, while Kia rest. Hyundai Motor Group said its planned sites, including hotels, conference centers and theme parks cars.

The group also intends to spend the site 30 subsidiaries, which will house the new headquarters of Hyundai and Kia. Both carmakers and partners Mobis 16 billion total market capitalization loss in September 17 for December 30, 2014 the last trading day.

To help ease investor discontent Yuanxi Li incumbent CEO, Hyundai Motor Company's chief financial officer and Park Han Yu, Kia, and former chief financial officer, and in October, said the two companies are considering the payment of dividends.

Automotive November have said they plan to spend ₩ 670000000000 repurchase shares on February 11 this year.

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