Hyundai Motor Group to invest $6 billion in 2009

SEOUL February 28, 2009; Reuters reported that South Korea's Hyundai Motor Group plans to invest nearly $6 billion this year, similar to 2008, and will focus on developing environment-friendly cars, as the world's No. 5 carmaker eyes longer-term growth beyond the current crisis.

The global auto industry is reeling under an unprecedented demand slump that has sparked production cuts, layoffs and government bailouts. General Motors Corp on Thursday posted a loss of nearly $31 billion for 2008.

Hyundai Motor Group, which has Hyundai Motor Co and Kia Motors Corp under its wing, said it would invest about 9 trillion won ($5.9 billion) this year, similar to its spending last year.

Of the planned investment in 2009, 6 trillion won would be spend on facilities with the remaining 3 trillion won earmarked for research and development, Hyundai said in a statement.

Hyundai is considered better positioned than its Japanese and U.S. rivals to weather the global recession thanks to the weaker won currency and a line-up of cheaper cars.

Hyundai's total global vehicle sales fell 27 percent in January year-on-year, but its U.S. sales rose nearly 10 percent.

The group, which has taken steps to slash costs and cut executives' salaries, said its research efforts would focus on greener vehicles as demand for less-polluting, fuel-efficient cars was expected to surge once the global economy improves.

Hyundai said it would spend 2.4 trillion won over the coming years on environment-friendly cars.

It aims to launch a gasoline-electric hybrid car model in July in South Korea. The group also plans to develop a commercial fuel-cell car model by 2012.