HYMLF - Hyundai Motor Company

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  • Reuters

    German auto stimulus to boost VW's electric push

    Germany unveiled sweeping incentives for cheap electric cars and for hybrid vehicles, providing a boost to Volkswagen's electric push while staggered taxes for polluting combustion-engined cars will penalise sports utility vehicles. Buyer incentives for passenger cars, including a lowering of value added tax to 16% from 19% were included as part of a 130 billion euro ($145.74 billion) stimulus package to speed up Germany's recovery from the coronavirus. In addition to a staggered tax on vehicles emitting large amounts of carbon dioxide (CO2), hitting sports utility vehicles, Germany included a 6,000 euro incentive for battery electric cars costing below 40,000 euros.

  • Bloomberg

    Samsung Billionaire’s Fate at Risk Despite Role in Virus Fight

    (Bloomberg) -- While technology billionaires have been among the most visible champions of the fight against Covid-19, perhaps none has as much at stake as Jay Y. Lee., Samsung’s anointed heir.South Korea’s largest corporation and its de facto leader have been key players in one of Asia’s most successful coronavirus containment campaigns. Since March, Samsung has dispatched its own doctors to hard-hit zones, flown Korean engineers overseas via its private jet, doled out roughly $39 million worth of aid globally and played a central role in ramping up production of testing kits -- hailed by healthcare experts as a turning point in Korea’s battle against the disease.Samsung -- the world’s largest maker of memory chips, mobile devices and electronic displays -- and its fellow conglomerates helped flatten the virus curve. But for Lee, success comes at a time of particular scrutiny. The well-publicized effort burnished his image months before the denouement of a years-long scandal and trial into alleged influence-peddling and Lee’s succession plans. In the legal clash, which inflamed resentment against Korea’s most influential conglomerates, Lee stands accused of using thoroughbred horses and other gifts to buy government support for plans to cement his family’s control over the Samsung empire -- something both Samsung and he have denied.In a sign of how popular opinion will play into the case, Lee this week requested a public assessment of the validity of the indictment, invoking a measure allowing the formation of a civil panel to review cases. Then on Thursday, prosecutors, at risk of losing some authority, decided to seek an arrest warrant for the billionaire for alleged violations of capital market and audit laws, Yonhap News reported.“Samsung got on the prosecutors’ nerves. The move to request an outside review is something that’s undercutting prosecutors and could enrage them,” said Chung Sun-sup, CEO at corporate research firm Chaebul.com. “Lee might have thought that he could get support from people who distrust prosecutors.”Read more: Samsung Heir Vows an End to Family Rule After Succession ScandalLee could face a prison sentence of several years in the current trial. Regardless of Covid-19, the outcome could prove a watershed moment in the sensitive relationship between the country’s corporate chieftains and government. The hearings, which will likely wrap late this year, are regarded by many observers as a litmus test for whether Korea’s courts are truly independent of the powerful business interests that hold sway over the economy.The 51-year-old Samsung heir convened a rare press conference in May to apologize for his company’s mis-steps over succession. Swearing his children would never run the company, he pledged to give back to society and praised his fellow citizens’ dedication throughout the outbreak. “It gave me a chance to look back on our past and as a member of the business community, I feel a greater sense of responsibility,” Lee said. “I pledge to create a new Samsung that is level with the national dignity of South Korea.”The surprise announcement drew public support from both ruling and opposition parties as well as the chairperson of the Fair Trade Commission. But critics and academics pounced on Lee’s comments as bereft of substance. That’s because it came just before a deadline set by an internal Samsung oversight body for just such an apology. The independent compliance committee, established this year after a judge in the graft trial questioned Samsung’s measures to prevent legal violations such as bribery, assessed Lee’s apology as a “meaningful” step but wanted more details.“Samsung has never done as much in the past” to assuage critics of the conglomerates, said Kyungmook Lee, a business professor at Seoul National University. “As the largest chaebol in South Korea, the way they contributed to the nation during the Covid-19 crisis and apologized over past wrongdoings is helping soften public sentiment and improve the image of both the company and its heir.”That’s important because suspicion of the judiciary in Korea runs deep. Over the past decade, at least half a dozen high-profile industrial magnates have been sentenced to prison for corruption, only to have those jail terms mitigated or suspended by the courts -- including Lee’s father. Even President Moon Jae-in, who swept into power on promises to clean up endemic corporate malfeasance, grappled with public outrage after a judge in Lee’s first trial unexpectedly freed him after just a year in prison. In suspending Lee’s sentence, the judge concluded the billionaire couldn’t resist requests from a sitting president and that the greater responsibility lay with public officials. Park Geun-hye, who was impeached in 2017, has denied taking any money for herself.Paranoia about chaebols’ influence continues to dog the second phase of Lee’s hearings, which commenced late last year after the Supreme Court overturned the lower court’s decision to suspend the mogul’s sentence and ordered a retrial. Lee’s hearing has been delayed for months as prosecutors argue that one of the appeals court judges overseeing the current case is biased and inclined to go lightly on Lee. The justice in question has shown a flair for the dramatic by, among other things, lecturing the executive at length in October on how he can better run Samsung, advising him to take inspiration from Israeli businesses. The appeals court judge has so far kept out of the fray.“In South Korea, the public opinion often influences trials and sways verdicts,” said Heo Pil-seok, chief executive officer at Midas International Asset Management. “While Samsung’s facing several critical situations, it’s trying to make a plea for clemency to the public,” he said, referring to not just its Covid-19 efforts but also Lee’s apology.Read more: Samsung Warns of Profit Slide After Virus Slams Tech SphereSamsung and Lee’s approach to the sudden flare-up of the novel coronavirus was in many ways no different than his peers’. Noted philanthropists Bill Gates and Alibaba Group Holding Ltd. co-founder Jack Ma donated millions or offered technical assistance. Others like Amazon.com Inc.’s Jeff Bezos, faced with public criticism that their companies are placing workers in jeopardy, focused their efforts on protecting the workforce. And tech corporations joined manufacturers around the globe in trying to plug a shortfall in ventilators and masks.Samsung representatives emphasized that the company’s main goal was to combat the disease, save lives and protect employees, and dismissed any suggestion they were connected to the hearing. In addition to dispatching personnel, the company also converted a training facility near Daegu into a treatment center, helped expedite business entries into China, even handed out free smartphones to quarantined patients.“Samsung Electronics is joining the global fight against COVID-19 to safeguard the health and safety of our employees, customers, partners and local communities,” it said in a statement. “The smart factory program and other global relief initiatives by Samsung Electronics have nothing to do with the ongoing legal proceedings over the case of Vice Chairman Jay Y. Lee. Our efforts to curb the spread of the coronavirus have always been to help our employees and their families that have been impacted by this pandemic as we are all in this together.”Samsung plays an unusually crucial role in Korea’s economy and national ethos. Its transformation from economic minnow to technology export powerhouse owes much to its family-run conglomerates. Known as chaebol -- which means “wealth clique” -- these pillars of the nation’s “miracle economy” encompass household names like LG, Hyundai and SK. They’ve supported government initiatives for decades, spearheading a modernization effort that’s created world leaders in shipping, steel, and now technology and electronics.Largest of them all is Samsung. The 82-year-old conglomerate is both a symbol of the Asian country’s technological and diplomatic rise as well as a touchstone for what many think is wrong with the economy today -- the overwhelming dominance of a handful of dynasties who call the shots in everything from cars to phones.“Samsung’s striving to overhaul its image to win a positive trial ruling,” said Chae Yibai, a former opposition lawmaker and a long-time corporate governance activist, referring to the months-long virus campaign. “The entire process is like a play, with a judge taking on the role of director and the compliance committee acting as a sub-director. The leading man is Lee.”South Korea’s Chaebol, Engines of Growth and Scandal: QuickTakeIn the current drama, Lee’s star is on the rise. His approval ratings in independent surveys have climbed since the conglomerate, heeding the government’s call, swung into action in March. The top keywords in domestic internet searches covering Lee from January to April were “virus” or “management,” according to surveyor Global Bigdata Research, pushing out trial-related terms among the top 30.He’s even won over some of the smaller businesses that’ve traditionally played second fiddle to the chaebols. Local mask manufacturer E&W said its output increased about 50% after it adopted Samsung’s solutions in its facility setup and distribution. Samsung also dispatched about 10 experts to each of four test-kit makers to instruct their engineers on how to ramp up volumes while resolving bottlenecks through automation. “Keeping a sound ecosystem of SMEs is essential to Samsung as well as for the long-term benefits of all economic players,” said Junha Park, head of Samsung’s smart factory operation team.Lee’s approval rating in surveys conducted by the Global Bigdata have risen in 2020 since the outbreak. They fell to 9.77% in the two days after his public apology, down from an average of 16.37% over the 30 days prior. But negative views also plummeted to 20.6% from 44.2%, while those on the fence shot up to 72.8% from 39.4%. That latter point is key.“Credibility is very important,” said Daniel Yoo, head of global investment at Yuanta Securities Korea. “Clearly the corporate image, about Samsung and South Korea, has been improving.”Chaebol Backlash Loses Bite as Jailed Execs Walk Free: QuickTakeThe most immediate challenge for Samsung is empowering and keeping its de facto leader free during an era of heightened uncertainty. Regardless of the personal outcome of that trial, the longer-term perceptions of chaebols may hinge on Lee’s promise to corporatize Samsung. Some view his vision as the first step in finally reining in the chaebols, by breaking decades-old succession lines. Others suspect Samsung will find some other way to safeguard the Lee family’s control. That’s because it’s not up to Lee, but to the company’s shareholders and board, said Shin Se-don, an emeritus professor of economics at Sookmyung Women’s University.“The apology was unlike Samsung,” said Shin, who worked at Samsung’s research institute in the late 1980s. “After Lee’s announcement, ruling and opposition parties both suggested Lee could be legally excused. That’s different from what most people think.”(Updates with prosecutors seeking an arrest warrant in the third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    U.S. auto sales in May encourage Detroit plan to rebuild inventories

    Several automakers on Tuesday reported stronger-than-expected May sales in the United States, and the Detroit automakers said they will work through their annual summer shutdowns to rebuild inventories as demand recovers from coronavirus shutdowns. The U.S. auto sector has reopened assembly plants following the shutdown and automakers that reported May sales said they saw signs of recovery in consumer demand. Toyota Motor Corp, said overall U.S. sales fell about 26% in May, but retail demand rebounded to 86% of levels in May 2019, exceeding the company's forecasts.

  • Reuters

    Rental fleet collapse drags down U.S. vehicle sales

    The collapse in demand for new vehicles from U.S. rental car fleets hit automakers hard in May, even as consumer sales were stronger than expected as coronavirus stay-at-home orders began to ease. The collapse of air travel has pushed big car rental companies to cancel orders for new vehicles, punching a hole in sales for nearly a dozen U.S. automakers' including the Big Three in Detroit. Hyundai Motor Co's U.S. sales arm said Tuesday that its sales to fleets, including rental companies, fell by 79% in May, while retail sales grew by 5%.

  • Bloomberg

    Russia’s Yandex Aims to Double Self-Driving Fleet With Hyundai

    (Bloomberg) -- Yandex NV will test a driverless car it developed with Hyundai Motor Co. in Detroit as the Russian technology giant makes plans to approximately double its fleet of self-driving vehicles.Yandex plans to buy 100 of the cars, which are souped-up versions of Hyundai’s Sonata, the company said in a statement on Tuesday. The test-drives, which had been planned around the now-canceled Detroit Auto Show, will commence on public roads in the city once lockdown restrictions are lifted, it said.Yandex and the South Korean company announced their partnership last year, seeking to create both a prototype of a driverless car and an autonomous control system that could be marketed to rival car manufacturers and car-sharing startups. The new, fourth-generation Hyundai model has been tweaked to help the system better detect what’s around the vehicles.The new Sonata has nine sensors, up from six, and has moved the radar system from underneath the bumpers to the roof, improving the system’s ability to distinguish objects around the car. Lidars, laser-based systems for measuring distance from a target, have also been moved to improve visibility. A human driver will be present in the car, but the vehicle should operate autonomously.Yandex operates a taxi service with its autonomous vehicles in the Russian city of Innopolis, though most of its fleet is currently occupied with test runs, which will gradually teach its driving software the skills it needs to react to incidents on the road. The company’s autonomous fleet, which recently exceeded 100 cars, have run 3 million autonomous miles, in cities including Moscow and Tel-Aviv.The road to mass-market robo-taxis has been fraught, with developers burning cash to create cars that can safely operate without a driver and win regulators’ approval. And the Covid-19 pandemic and accompanying lockdowns have hit the industry hard.Read more: The State of the Self-Driving Car Race 2020Competitors including General Motors Co.’s Cruise and Uber Technologies Inc. have cut staff recently, while Ford Motor Co. shifted plans to start self-driving services by a year to 2022. Self-driving trucks startup Starsky Robotics shut down in March with its founder saying that “supervised machine learning doesn’t live up to the hype.”Still, the promise of driverless vehicles and the revolution they could bring to everything from personal transportation to logistics, means the technology is still attracting investors. Amazon.com Inc. is in talks to acquire autonomous vehicle startup Zoox Inc., the Wall Street Journal reported last week. Analysts from Morgan Stanley estimate that Amazon could save $20 billion a year with the technology, which would also allow the e-commerce giant to compete in ride-sharing and food delivery.Read more: Amazon Buying Zoox May Save $20 Billion, Put Tesla on Its HeelsYandex, Russia’s largest internet-search engine and ride-hailing operator, has spent $35 million over the past three years to develop its self-driving cars, using technologies such as machine learning and image recognition from its other businesses.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Bloomberg

    Why Is Beijing Bailing Out Car Inc.?

    (Bloomberg Opinion) -- Famed investor Carl Icahn couldn’t save an American emblem, Hertz Global Holdings Inc. So why does a Beijing-backed enterprise think it can rescue China’s largest car rental company?   With its prospects for fresh capital dimming, Car Inc., which shares a chairman with scandal-hit Luckin Coffee Inc., says it’s selling a stake to Beijing Automotive Group Co., the Chinese joint venture partner for Daimler AG-owned Mercedes-Benz and Hyundai Motor Co. BAIC plans to buy up to 21.26%, or a maximum 450.8 million shares, the entire ownership of parent UCAR Inc. That would make the state-owned entity the second-largest shareholder behind Legend Holdings, parent of computer maker Lenovo Group Ltd. Another agreement that was in the works between UCAR and a vehicle linked to private equity giant Warburg Pincus LLC will be terminated. Investors cheered Monday’s news, with the stocks and bonds rising from near rock-bottom. The sale would help sever ties between Car Inc. and Luckin and, in theory, reduce further fallout from the scandal engulfing the coffee chain and Chairman Charles Lu Zhengyao that has riled regulators. But the rescue doesn’t make much strategic or financial sense for either Car Inc. or BAIC.The last thing BAIC needs in the current auto market, which was sagging even before the pandemic, is the stress of a troubled rental company and all the strings attached. The auto giant’s first-quarter results showed that net profit declined 95% on year. The local Beijing brand posted a loss of 1.4 billion yuan ($196 million). Mercedes-Benz was better off because premium-segment demand has held up. Sales volume halved on the Hyundai side. BAIC is already playing rescuer elsewhere, bolstering dealerships with financial support like payable extensions, interest waivers and higher subsidies.What BAIC will —  or can — do for Car Inc. through such an arrangement is unclear. The company may end up being a sink for BAIC. The rental business relies heavily on financing and needs capital with high costs on vehicle acquisitions and other such operations. UCAR, the parent, has also been a source of revenue for Car Inc. through fleets; what happens to those relationships once ties are cut will be in doubt. Car Inc. has to deal with the residual value of its cars because in China, manufacturers don't offer guaranteed depreciation or repurchase programs. The company also has guaranteed subsidiary borrower loans onshore along with other shadow financing arrangements. It will be on the hook if there are any defaults. The rental company’s future, with or without a savior, was already up in the air. Moody’s Investors Services expects its leverage ratio to rise over the next 12 months as revenues and demand fall. The cancelled sale of the second tranche of shares to Warburg would have made the firm Car Inc.’s largest shareholder, and could have eased worries about governance and capital shortages, according to S&P Global Intelligence. UCAR sold the first portion — a 4.65% stake — in April to the U.S. firm.This raises several questions for Car Inc. bondholders should BAIC eventually buy the entire stake. UCAR had pledged the shares as collateral for some loans last June. Now, there’s the risk of a change of control event and accelerated debt repayments. Any modifications to the ownership, that is, if the cumulative stakes of major shareholders fall below a 35% threshold, would trigger the clause.There are other considerations. Does Daimler want a part of this? The German company owns 30% of BAIC’s Hong Kong-listed shares. The stake sale, if completed, could open it up to the risk of helping Car Inc. That may weigh on its Chinese partners’ financial standing domestically if Daimler is pushed to support the rental firm’s business.It’s one thing to bail out a good company with a bad balance sheet. But Beijing’s modus operandi of rescuing all companies and banks lands it just where it doesn’t want to be: holding the bag for many bad actors. Consider this: In March last year, UCAR took a 67% stake in an entity related to BAIC through a complicated transaction. It still hasn’t fully paid back the equity portion, according to local media reports. It also owes principal and interest payments. Perhaps this is the way in to get some money back? Either way, this bailout looks wrong. The imminent arrival of a white knight does little in the way of reorganizing or fixing this business; it just shifts around liabilities and a web of ties. Investors shouldn’t rejoice too soon.  This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Hyundai Motor's May sales fall sharply y/y on COVID-19 impact
    Reuters

    Hyundai Motor's May sales fall sharply y/y on COVID-19 impact

    South Korea's Hyundai Motor Co <005380.KS> said on Monday its provisional May sales fell 39% year-on-year to 217,510 vehicles globally, as the coronavirus outbreak continued to hit demand in key markets. Its domestic sales rose 5% year-on-year, led by popular models such as the Grandeur sedan and new models such as all-new Elantra and premium brand Genesis' G80 sedan. Hyundai Motor's sister company Kia Motors <000270.KS> announced provisional May sales of 160,913 vehicles, down 33% from a year ago, while its domestic sales rose 19% on year, overseas sales fell 44%.

  • Hyundai Motor's May sales fall sharply year-on-year on COVID-19 impact
    Reuters

    Hyundai Motor's May sales fall sharply year-on-year on COVID-19 impact

    South Korea's Hyundai Motor Co <005380.KS> said on Monday its provisional May sales fell 39% year-on-year to 217,510 vehicles globally, as the coronavirus outbreak continued to hit demand in key markets. Its domestic sales rose 5% year-on-year, led by popular models such as the Grandeur sedan and new models such as all-new Elantra and premium brand Genesis' G80 sedan. Hyundai Motor's sister company Kia Motors <000270.KS> announced provisional May sales of 160,913 vehicles, down 33% from a year ago, while its domestic sales rose 19% on year, overseas sales fell 44%.

  • Hyundai Motor Group to get electric vehicle batteries from LG Chem
    Reuters

    Hyundai Motor Group to get electric vehicle batteries from LG Chem

    Hyundai Motor Group, which includes Hyundai Motor and its sister company Kia Motors has picked LG Chem as one of the battery suppliers for its upcoming new electric vehicles, a group spokesman said on Wednesday. Details of the supply contract including the electric vehicle (EV) model and the full amount of the deal, which are yet to be decided, will be confidential, the spokesman said. LG Chem declined to comment.

  • Hyundai India, Maruti workers get coronavirus, showing restart risks
    Reuters

    Hyundai India, Maruti workers get coronavirus, showing restart risks

    Workers at two of India's biggest carmakers have tested positive for the novel coronavirus days after restarting operations, exposing the risks companies and the government face in kickstarting the economy. Three employees at Hyundai Motor Co's Indian plant have tested positive for the virus, the South Korean automaker said on Sunday. Maruti Suzuki India Ltd, which sells one in every two cars in the country, said late on Saturday one employee at its plant in the northern city of Manesar had tested positive and there was the possibility of a second case.

  • Reuters

    Three Hyundai India workers get coronavirus, showing restart risks

    Three employees at Hyundai Motor Co's <005380.KS> Indian plant have tested positive for the coronavirus, the company said on Sunday, days after the South Korean automaker resumed operations after a near two-month lockdown. Test results of sixteen more workers who possibly came into contact with the infected employees are expected over the next two days, a senior government official told Reuters. "The state's policy is to not let the industry stall," said P Ponniah, the top bureaucrat in the Kancheepuram district of southern India where Hyundai's plant is located.

  • SoCal Hyundai dealer towed cars customers had dropped off for service
    Autoblog

    SoCal Hyundai dealer towed cars customers had dropped off for service

    Tales of unscrupulous car dealers don’t get much more smarmy than this. Los Angeles Times business columnist David Lazarus is out with a piece about a Hyundai dealer in Culver City, Calif., who had several vehicles that customers had dropped off for service towed off his dealer lot when the business shut down because of the coronavirus outbreak. Hyundai Motor America disagrees, saying the dealer never informed the company or the owners themselves about towing the vehicles, and it says it's aware of at least 11 cars that were towed.

  • Bloomberg

    Virus Won’t Deter Hyundai Capital’s Overseas Expansion, CEO Says

    (Bloomberg) -- Ted Chung, chief executive officer of Hyundai Capital Services Inc., expects the shock wave from the coronavirus pandemic to hit the company later this year as government relief funds dry up and late payments and defaults rise.But despite the troubling outlook, Chung, 60, says he has no plans to alter his ambitions to turn the company into a global financial powerhouse by expanding overseas and growing the business beyond auto financing and consumer lending.“Hyundai Capital has so many places to go and coronavirus wouldn’t change that at all,” said Chung, who has been working for South Korea’s second-largest chaebol since 1987 and is the son-in-law of billionaire Hyundai Motor Group Chairman Chung Mong Koo. “We’re just taking coronavirus as part of our life. We’ll keep marching.”What started as the financing arm of Hyundai Motor Group is making significant strides in the global market, with its combined overseas financial assets increasing to a record $41 billion in 2019, nearly double its domestic assets. Hyundai Capital is already the largest consumer finance company in South Korea.Hyundai Capital’s plan in Europe includes expanding into Spain and Italy, leveraging its recent purchase of Sixt’s auto leasing unit in Germany. Hyundai Capital Bank Europe, a joint venture between Hyundai and Santander Consumer Bank AG, is acquiring Sixt Leasing SE for at least 156 million euros (about $170 million).Challenging EnvironmentIt is also considering further boosting its operations in India and Australia, Chung said in an interview in Seoul. Chung said he may eye other potential acquisitions after focusing on the expansion of the German leasing company.Hyundai Card Co., the credit card unit and South Korea’s fourth-largest, will also jump on the globalization move as it will complete preparations in the first half of this year for its planned initial public offering, which could happen sometime this year or next year, depending on shareholders’ sentiment, Chung said.Still, Chung’s ambitions for global expansion will be challenging. Hyundai Motor Co.’s overseas sales are falling as auto companies face high exposure to the demand shock and supply chain disruptions due to the pandemic. S&P Global Ratings and Moody’s Investors Service have placed the credit ratings of Hyundai Motor Group including its financial units on review for downgrade.Overseas expansions may help raise the company’s profitability and growth potential, but they could hurt its financial stability if aggressive, which will need to be monitored, said Yeil Kim, an analyst at Korea Investors Service Inc. in Seoul.While the impact of the virus on Hyundai Capital has been small so far, the company is bracing for “real damages,” such as higher delinquencies or write-offs, with many people losing their jobs or suffering from their businesses, Chung said. That could happen as early as August, about six months into the virus outbreak.He said, however, that the impact could be “delayed or partially neutralized” as governments in many countries hand out cash to those hit by the virus outbreak. Surprisingly, the delinquency rate in Korea is actually going down, he said, which might have benefited from the government measures.Safety FirstAs Chung expects economies to recover from the virus hit -- resembling something between “V-shaped” and “L-shaped” -- he plans to secure liquidity as much as possible even at higher cost.Hyundai Capital America sold $1.8 billion of bonds in a three-part-deal last month. The company offered a three-year note at a spread of 550 basis points, compared with 95 basis-point premium for similar bonds sold in February. In normal times, he said he would never accept such prices, but he took it given the volatile market.“When it comes to funding, there are two things primarily -- safety and price,” he said. “Safety means that you build up your cash reserves, but also you want to pay the right price. So in normal days maybe we say fifty-fifty. Now, we put 70% to safety.”Chung says the company is also increasing its focus on “data science.” Hyundai Card created a big data analytics tool after analyzing spending patterns of its credit card customers. The company provides access to the data analytics to its business customers who can use it for improving their marketing and providing better services, he said.To Chung, Hyundai Capital is more than just a staid finance company. He invited British rock band Queen for a concert held by Hyundai Card in January after the success of biopic film “Bohemian Rhapsody“ in Korea in 2018. The company also has various design projects including Bongpyeong market project in Korea’s Gangwon province to revitalize traditional food markets.Chung says his goal is to turn Hyundai Capital into a “global digital company” for lack of a better description. In the new age of globalization, the threat of alternative upstarts is bigger than ever in finance, so he says the company competes with not just other credit card companies or banks but with technology companies such as Apple Inc. and Samsung Electronics Co. with their digital payment services.“Staying the old way is not my option at all,” he said.(Updates with Hyundai Card’s IPO plan in seventh paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    FOCUS-Automated delivery cashes in on pandemic-driven demand

    The coronavirus crisis is accelerating a shift in the world of autonomous cars toward delivering packages instead of people, as big players open up a lead over startups in the race for funding. "The reality right now is that goods delivery is a bigger market than moving people," John Krafcik, chief executive officer of self-driving technology company Waymo, told Reuters in early May. Waymo, a unit of Google’s parent Alphabet, started out focusing on autonomous taxis.

  • Hyundai wants to use UV light to disinfect automobile interiors
    Autoblog

    Hyundai wants to use UV light to disinfect automobile interiors

    Ultraviolet light's ability to kill viruses has moved this technology to the forefront of the fight against the coronavirus. Now the Hyundai Motor Group says it is exploring the idea of using UV light to disinfect automobile interiors, turning the humble dome light into a weapon against the spread of disease. "HMG is about to use UV light sterilization technology on their vehicles," the company recently announced on its website.

  • Reuters

    Russia car sales plunge 72.4% in April y/y - AEB

    Sales of new cars in Russia plummeted by 72.4% in April from a year earlier after a 4% rise in the previous month, the Association of European Businesses (AEB) said on Tuesday. April was part of a non-working period in Russia, ordered by President Vladimir Putin to stop the spread of the coronavirus outbreak, bringing the economy grinding to a halt as factories and businesses were forced to suspend operations and citizens asked to self-isolate. People rushed to buy passenger cars in March, with sales jumping 22.7%, expecting prices to rise after a fall in the rouble in the wake of lower oil prices and the coronavirus outbreak, analytical agency Autostat said last month.

  • Reuters

    GM Korea to cut output of key SUV as virus hits U.S. exports -document

    General Motors Co's South Korean unit plans to sharply cut output this month at a factory producing its new Trailblazer sport-utility vehicle (SUV), as the coronavirus outbreak weighs on its U.S. exports and also disrupts parts supplies. GM Korea is responsible for supplying some of GM's small SUVs to the U.S. market to meet a consumer shift away from sedans. GM Korea will run its BP1 plant in Incheon, near Seoul, for seven business days this month and idle it for the remaining 11, showed its internal production plan seen by Reuters.

  • General Motors suspends dividend, buybacks to save cash
    Yahoo Finance Video

    General Motors suspends dividend, buybacks to save cash

    General Motors is suspending its dividend in order to preserve cash as the coronavirus outbreak disrupts production. Yahoo Finance’s Emily McCormick joins Yahoo Finance’s Seana Smith to discuss.

  • Hyundai sees limited China recovery and dismal virus-hit sales elsewhere this year
    Reuters

    Hyundai sees limited China recovery and dismal virus-hit sales elsewhere this year

    South Korea's Hyundai Motor Co said on Thursday it expects only a modest recovery in Chinese auto demand and weak sales elsewhere this year after the coronavirus pandemic caused first-quarter vehicle sales to tumble 18%. Hyundai, which with Kia Motors forms the world's No.5 automotive group, joins a growing number of carmakers forecasting a bleak year. "Demand is expected to worsen in the second quarter due to the prolonged suspension of dealer operations and factory operations in overseas markets," Hyundai's Chief Financial Officer Kim Sang-hyun said in an earnings call.

  • PR Newswire

    Kona Electric recognized as one of the greatest EVs on sale in TopGear Electric Awards

    Kona Electric has been acknowledged as the Best Small Family Car in the inaugural TopGear Electric Awards, after it completed a 1,600-kilometers road trip across 9 European countries. Hyundai Motor's fully electric SUV was not only commended for its efficiency and long-distance capability but also for its smooth and effortless performance.

  • No takers: Hyundai cars sit in U.S. ports as virus keeps buyers away
    Reuters

    No takers: Hyundai cars sit in U.S. ports as virus keeps buyers away

    As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai Motor cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf.

  • Reuters

    FOCUS-No takers: Hyundai cars sit in U.S. ports as virus keeps buyers away

    As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai Motor cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. Hyundai shipped 33,990 vehicles to the United States in March, or 4.3% more from a year ago, according to company data.

  • Reuters

    S.Koreans return to work, crowd parks, malls as social distancing rules ease

    South Koreans are returning to work and crowding shopping malls, parks, golf courses and some restaurants as South Korea relaxes social distancing rules amid a continued downward trend in coronavirus cases. A growing list of companies, including SK Innovation and Naver, has ended or eased their work from home policy in recent weeks, though many continue to apply flexible working hours and limit travel and face-to-face meetings. Parks, mountains and golf courses brimmed with visitors over the weekend, while shopping malls and restaurants were slowly returning to normal.

  • Reuters

    Toyota-backed Pony.ai to offer autonomous delivery service in California

    Toyota-backed self driving company Pony.ai said on Friday it would provide an autonomous delivery service to residents of Irvine, California, as demand for online orders surges because of the coronavirus lockdown. As some 90% of U.S. shoppers are under stay-at-home orders, a jump in demand for package and grocery delivery has left e-commerce platforms struggling to cope. Pony.ai said in a statement it would use autonomous electric vehicles to deliver packages from local e-commerce platform Yamibuy to customers in Irvine, California, which has a population of more than 200,000.

  • Hyundai first to restart Czech production, others still shut
    Reuters

    Hyundai first to restart Czech production, others still shut

    Hyundai Motor Co's <005380.KS> Czech car plant was the first in the central European country to get back to work on Tuesday after a three-week outage, potentially easing some of the strain on the hard-hit economy. The car sector accounts for a tenth of economic output and a quarter of exports in the Czech Republic, and employs 150,000 directly and even more indirectly.