Hyundai To Enter U.S. Commercial Vehicle Fray
 Hyundai H350 Commercial Van Shown at Paris Auto Show |
Seoul February 16, 2015; Hyunjoo Jin writing for Reuters reported that South Korea's Hyundai Motor Co plans to spend around $1.8 billion by 2020 on a major offensive in commercial vehicles, including entering the race in the United States, to catch up with rivals in a rapidly growing global market.
Hyundai, the world's No.5 automaker when paired with sister Kia Motors Corp, has targeted a market it sees growing almost 30 percent in each of the next five years, but where its share ex-China is a paltry 2.1 percent. In 2014, its commercial vehicle sales fell at home, in China and elsewhere.
To expand, Hyundai said it will invest 400 billion won ($363.13 million) to raise production of vans, trucks and buses in Korea by 2020, and that it has earmarked 1.6 trillion won for research and development in such vehicles until the end of the decade.
Hyundai, in a statement on Monday, also said it plans to introduce "premium models in North America and Europe," without providing a time frame or other details.
Hyundai lost share in the overall vehicle market last year in the United States, partly due to having few fuel-guzzling pickup trucks and sport utility vehicles - segments which surged in popularity as oil prices plunged.
Editor's Note: The Hyundai H350 which will be built in Turkey, will be offered in several configurations including a cargo van, a passenger-carrying van, a pickup truck and a cab-chassis. Buyers will likely be able to choose from a variety of wheelbase lengths and roof heights. The H350 will be offered with a 2.5-liter four-cylinder turbo-diesel engine available with either 150 horsepower and 275 lb-ft. of torque or 170 HP and 311 lb-ft. of torque, both will utilize a six-speed transmission.