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Ionic 5, launched in March, starting in Europe
Sales target of 160,000 electric cars and 4.16 million cars completed this year.
Kia Motors headquarters in Yangjae-dong, Seoul. Photo = Korea Economic Daily DB
Hyundai Motor Company’s operating profit last year fell below 3 trillion won as a result of a contraction in the global auto market due to the provision of quality costs and the spread of the new coronavirus infection (Corona 19 ).
Hyundai motor company(251,500 -3.27%)On the 26th, on a conference call for the earnings announcement, last year’s sales and operating profit decreased 1.7% and 22.9% compared to the prior year to 103,9976 million won and 2,781.3. million won, respectively.
However, it is analyzed that the real profitability has improved considerably, considering that it accumulated a provision for quality of 2.1352 million won related to the ‘Theta 2 GDI engine’ in the third quarter of last year.
Results for the fourth quarter of last year showed a clear rebound. Hyundai Motor’s fourth quarter sales and operating profit increased 5.1% and 40.9% over the same period last year to 29,243.4 billion won and 1.64 trillion won. Ordinary income and net income also increased 34.4% and 78.3%, recording KRW 1,521.7 billion and KRW 1,376.7 billion, respectively.
In most markets last year, Hyundai Motor’s finished car sales declined compared to 2019. Photo = Hyundai Motor Company
The number of vehicles sold worldwide by Hyundai Motor Company decreased annually by 15.4% from 4,25,528 in 2019 to 374,4737 in 2020. Hyundai Motor said: “Although there is a re-proliferation of Corona 19, the global auto demand is showing gradual recovery. “
As luxury car and SUV sales increased, the operating margin also improved. Hyundai Motor’s operating margin in the fourth quarter of last year was 5.6%, surpassing 5% for the first time since the third quarter of 2017, 5.0%. Hyundai Motor plans to boost its earnings this year thanks to the recovery in demand in the automobile market.
Regarding future prospects, Hyundai Motor said: “It is difficult to expect demand to recover to the pre-Corona19 level, and difficult business environments, such as intensifying competition and unfavorable exchange rates, will continue.” The operating margin points to 4-5%. ”
Hyundai Motor Company set a goal of selling 4.16 million finished cars this year. Photo = Hyundai Motor Company
To this end, the company plans to focus on improving profitability by expanding SUV sales, optimizing production and profits, accelerating cost innovation, and promoting the global market liquidation of the Genesis and Ionic brands. Ioniq 5, which is equipped with E-GMP, an electric vehicle platform for the first time, is about to launch. Hyundai Motor Company announced that “Ioniq 5 will launch in Europe in March” and “will launch in Korea and the United States in sequence.”
The Genesis G80 eG80 electric vehicle and the Genesis JW (project name) semi-midsize SUV are also scheduled to launch this year. Through this, the plan is to achieve 160,000 electric vehicle sales this year. To improve profitability, the company decided to begin selling the Genesis GV70 SUV to the North American market in the first half of the year and the Santa Cruz pickup truck in the second half. This year, the finished car sales target was set at 4.15 million units, including 740,500 units in the domestic market and 3,418,500 units in the foreign market.
It is also making an investment of 8.9 trillion won this year. Hyundai Motor Company has decided to spend 3.5 trillion won on investment in facilities (CAPEX) and 3.5 trillion won on research and development (R&D) during the year to concern the car market of the future such as vehicles electric and hydrogen. It also allocated 900 billion won for strategic investments. Meanwhile, the dividend at the end of 2020 will remain the same as the previous year’s 3,000 won.
Sesung Oh, Hankyung.com Reporter [email protected]
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