Hyundai is cutting the costs after facing the decreasing of profit fourth year in a row, Reuters reported. The trimming hit the family home trip for employees, and benefits for the executives. On the long term The South Korean producer is shifting the line up from sport vehicles to the sedans, since the global market is shifting and turning to the every year more popular SUV-s.
The cost cutting is planned in order to provide the Hyundai more time prepare new models and a design revamp. One of the Reuters insiders told that they are “trying to address a mismatch between the market trend and our product line-up. That’s a longer term plan. For now we’re trying to save every penny.”
Another unnamed insider told that they are “in emergency management mode.” As the response to the article, Hyundai Motor shortly commented they are “making various cost-saving efforts”, with shrinking global demand and growing business uncertainty, without deeper elaboration.
Getting back on track over the next couple of years with new SUV-s
After the economic crisis, Hyundai was the only big automaker with increased sales in the US in 2009, the producer didn’t had much luck with the competition SUV’s boom and weakened economies of emerging markets
At the same time while is cutting the stuff budget, Hyundai is intensifying the offer of SUV’s, refreshing its Sonata sedan, and reorganizing exports. Now they are taking side form Middle East to the United States.
In order to enlarge the SUV offer In the United States, at its plant in Montgomery, Alabama, Hyundai has replaced some Sonata production with its popular Santa Fe SUV.
Next year, Hyundai will look to plug a gap in its SUV offerings for developed markets by making a sub-compact model – under the project name “OS” – in South Korea for sale at home, in the United States and Europe, people inside the company said. Hyundai makes sub-compact SUV-s locally in China, India and Russia.
“We need that small SUV in the U.S, much sooner than later,” Scott Fink, one of Hyundai’s biggest U.S. dealers, told Reuters.
Hyundai is working on a next generation of cars with “a different flair” to hit the market from 2019, Luc Donckerwolke, senior vice president for design, told Reuters on the sidelines of a recent event.
The biggest holder of Hyundai Motor preferred shares, the Norway-based Skagen Kon-Tiki fund, expects the automaker to get back on track over the next couple of years, with new SUVs, recovering emerging market currencies and better plant utilization.