Indpendent Future Positive For Hyundai Motor Co.

Indpendent Future Positive For Hyundai Motor Company

As Hyundai Motor Company enters its first full year of independence focused on its core automotive operations its Chairman, Mong-Koo Chung, is optimistic that it can be a leading light for Korean industry in the future.

Speaking to Hyundai and Kia workers he stressed the need for transparent, profitable operations as the company heads towards the first anniversary of its spin-off from the Hyundai Business Group.

The re-structured and re-financed auto-maker recently recorded record profits following its best ever year of sales and with export sales continuing to grow – against world industry trends – the projections for 2001 are strong.

Clear path

Chairman Chung said” Since the acquisition and normalization of Kia and the spin-off of Hyundai Motor from the Hyundai Business Group into a completely separate business the board of directors has been following a very clear path.

“Share-holder value has been enhanced through the retirement of 10 million ordinary stock. Investor confidence has been strengthened thanks to record sales in 2000 and record profits for Hyundai Motor. Additionally our strategic merger discussions with DaimlerChrysler, which has almost completed the acquisition of a ten per cent stake in Hyundai Motor clearly indicates the positive future for the company,” he added.

But he also urged employees of Hyundai and Kia to continue to strive to improve the company’s profitability and its service to customers.

“Any company which fails to make profits for its share-holders and investors will suffer management instability. We must all strive to continue the process of building the international renown of our brands by creating added value for our customers and ensuring world class service,: he commented.

Successful year

He told employees that 2000 had been one of the most successful years in the company’s history, thanks to profits at Hyundai Motor of more than US$ 14 billion and vehicle sales in excess of 1.5 million. However, he added that the momentum would have to be maintained for international confidence in the company to be enhanced.

Already in 2001 Hyundai Motor has announced an increase in sales of 6.4 per cent thanks largely to further increased demand in export markets.

Also the Korean Government’s regulatory body is due to give its final approval to the Hyundai Motor spin-off following the six-month probationary period since the separation was completed by the removal of cross share-holdings by Hyundai Business group companies..

Chairman Chung added: “We now face the task of ensuring that 2001 out-performs last year in every respect and continues our growth and movement towards becoming on of the world’s leading auto-makers.”

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