Hyundai Plans Luxury Vehicle

Washington DC March 20, 2007; THe AIADA newsletter reports that Hyundai Motor Co., South Korea's top auto maker, announced yesterday it plans to launch a car aimed at the U.S. premium segment next year.

CNN reported that Hyundai is targeting the luxury car market in a bid to upgrade its image and convince the public that the company does not just make economic cars.

"We will launch the 'BH' in the first half of 2008 in South Korea and will begin to sell the premium sedan in the United States, the major export market for the model, late 2008," said Hyundai spokesman Jake Jang, referring to the car's code-name.

The new model, which Hyundai hopes will sell about 20,000 units a year, will have a V-8 engine. Hyundai is adding premium models, which carry higher margins, to its line-up to boost profits amid unfavorable business conditions such as a stronger won currency and weaker domestic demand.