Hyundai, Kia to cut costs as sales, profit decline - Automotive News
SEOUL (Bloomberg) -- Hyundai Motor Co. and its affiliate Kia Motors Corp. Hyundai and Kia are “making efforts to cut costs” after first-quarter operating profit declined, the carmakers said in a joint email today. Operating profit at both Hyundai and Kia declined for a fourth consecutive quarter in the three months ended March 31. The automakers have posted declining vehicle sales as unfavorable currency-exchange rates undermine their ability to compete... “The first thing they can cut would probably be costs related to sales, marketing and advertisement,” said Shin Chung Kwan, an analyst at KB Investment & Securities Co. “The current situation, and their efforts to cut costs, will also give them... The JoongAng Ilbo newspaper reported earlier that Hyundai Motor Group is seeking to cut costs by 30 percent, citing an unidentified senior executive. Last week, the Korean carmaker said domestic and overseas sales declined for a second consecutive month in May. Hyundai has also missed out on a worldwide SUV boom, sparked in part by a decline in gasoline prices. Source: www.autonews.com
