Hyundai may post lower profit in first quarter of 2013

Article by Anita Panait, on April 26, 2013

Hyundai’s profit in the first quarter of 2013 may likely shrink, no thanks to production stoppages in South Korea and the won strength against the yen. A lower-than-expected result would place more pressure on Hyundai to produce more cars outside its home base of South Korea.

Hyundai is expected to release on April 25, 2013, its first quarter results, which may reflect an 18-percent dive in net profits to KRW2 trillion ($1.79 billion), according to Thomson Reuters I/B/E/S.

Such drop would mark the second straight quarterly profit decline by Hyundai, which may have suffered from possible costs related to recalls of over 1 million vehicles globally. While Hyundai has managed to outsell competitors like Toyota Motor Corp and General Motors Co during the global economic downturn with its low-cost cars, the carmaker is now badly hit by the rising South Korean won combined with the weakening Japanese yen, as well as labor issues in South Korea.

Hyundai's South Korean labor union staged a series of production stoppages during weekends in March and April, resulting in lost production worth $850 million. South Korea accounts for around 40 percent of Hyundai’s total production. Production issues at home may prompt Hyundai to expand its capacity in the United States and China, according to analysts.

Suh Sung-moon, an auto analyst at Korea Investment & Securities, remarked that labor problems in South Korea “make it inevitable for Hyundai/Kia” to increase overseas production. He noted that even without labor issues, Hyundai's portion of overseas production is lower than its Japanese rivals. Hyundai, when combined with affiliate Kia Motors Corp., is the fifth-largest carmaker in the world.

Last month at the 2013 Geneva Motor Show, Hyundai displayed the next generation of the i30 three-door model to demonstrate how smartphones can be used to make the motoring experience more personalized, pleasant as well as practical. The display allowed Hyundai to show how drivers can take advantage of the more intensive integration of personal devices and Hyundai models. This innovative connectivity concept is coursed through a partnership between Hyundai and fellow South Korean company LG.

With this project, the smartphone can be used unlock the doors and even personalize its settings such as changing the electric seat and mirror positions. The smartphone can also be used to personalize radio station presets, navigation settings as well as menu appearance.

This system exclusively employs the MirrorLink wireless system that allows the driver to access to and use the smartphone’s content through using the 7-inch high-resolution touch screen of the Hyundai i30. The device’s navigation functions as well as internet-based apps can be displayed on the touch screen.

If you liked the article, share on:

Topics: hyundai, profit

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019