Hyundai planning several new models for U.S.

SAN FRANCISCO, Jan 31, 2003; Reuters reported that Hyundai Motor Co. Ltd.'s (KSE:05380.KS - News) plans for expansion in the United States could include adding pickups, full-size sport utility vehicles and luxury cars to its lineup, Hyundai Chairman and Chief Executive Officer D.J. Kim said on Friday.

Kim, speaking from a J.D. Power and Associates automotive conference, said that most of the new models under consideration would be scheduled for production by 2007 or 2008, but that Hyundai would have a new small SUV on sale in 2004.

The models would be key to the Korean automaker's drive to grow its U.S. sales to 1 million by 2010. Last year, Hyundai sold about 375,000 vehicles and ranked seventh in U.S. sales, accounting for a 2.3 percent market share, just behind Nissan Motor Co. (Tokyo:7201.T - News) but higher than Mitsubishi Motors Corp. (Tokyo:7211.T - News) and Mazda Motor Corp. (Tokyo:7261.T - News)

Hyundai announced last year it would build a $1 billion plant in Montgomery, Alabama, with output expected to begin in 2005 and rising steadily to a maximum of 300,000 vehicles annually.

While the plant is slated to build the Santa Fe small sport utility, Kim said the plant could also build a full-size SUV and a small or mid-size pickup. But he said Hyundai would stay out of the full-size pickup market, the scene of a fierce battle between Detroit's Big Three and the target of larger Japanese automakers.

Kim also said Hyundai had not decided on whether to set up a luxury brand in the United States, as Toyota had done with Lexus. He did say the company was working on V8-powered luxury vehicles for the United States.