By Seonjin Cha/ Bloomberg
Seoul: Hyundai Motor Co., South Korea’s largest automaker, and its Kia Motors Corp. affiliate plan to spend 968.2 billion won ($1.04 billion, Rs4,219 crore) by the end of 2009 upgrading domestic assembly lines and developing new products.
Hyundai will spend 535.5 billion won retooling production lines, boosting engine output and developing new models including the BH luxury sedan, Jake Jang, a spokesman for the Seoul-based automaker, said on 21 May. Kia plans to spend 432.7 billion won over the same period upgrading factories and developing new sedans and sport-utility vehicles, he added.
The two companies aim to develop new models to challenge Toyota Motor Corp. and to increase their overseas sales as they seek to become the world’s fifth largest auto-making group by 2010. Hyundai plans to invest 3.8 trillion won this year in all of its domestic and overseas factories, while Kia has budgeted 1.78 trillion won.
The two carmakers, currently ranked sixth largest in the world, have plants in countries including China, India, Turkey, the U.S. and Slovakia.