Hyundai Motor Spurts Ahead

Kia’s Forte Koup

New Models, Improved Reputation Boost Carmaker

By Jane Han
Staff Reporter

What a year for Hyundai Motor.

Launching upgraded models and opening new plants in emerging markets amid the global recession were no easy achievements, but the South Korean auto giant marched right through and rolled out record results.

Hyundai built up its momentum from the start of the year to eventually hit record quarterly profits.

In the third quarter, the world's No. 4 automaker, combined with its affiliate, Kia, posted a record quarterly net profit of 979.1 billion won, up 270 percent from a year earlier.

In the April-to-June period, it earned 811.9 billion won, which was also a strong gain from the previous year.

The better-than-expected results were racked up at a time when the world's top car makers were sinking in the industry's worst-ever downturn. So what was behind the earnings surprise?

Stimulus measures put out by governments around the world boosted demand and the weak currency helped lift sales. But besides these factors, analysts say Hyundai's cheap and fuel-efficient vehicles and lineup of new models largely helped win over consumers who were skittish to spend.

``Hyundai got a nice lift from its new models this year,'' said Sohn Myoung-woo, an analyst at Woori Investment & Securities, adding that the company's strong performance is likely to continue through the fourth quarter.

There are concerns that the Korean firm will see weaker results at the end of this year as the local currency strengthens and governments around the world phase out measures to boost auto demand, says Ko Tae-bong, analyst at IBK Securities.

But he said Hyundai will post higher quarterly results in the October-to-December period with a more diversified sales mix.