Hyundai CEO predicts tough business environment in 2011

Hyundai Motor Chief Executive Officer Yang Seung-Seok, speaking at the annual shareholders meeting, said that 2011 will continue to be a tough year for automakers. He cited growing competition from Japanese and U.S. carmakers and a stronger won as among the factors for his forecast. “The won-dollar exchange rate is forecast to decline steadily, U.S. and Japanese carmakers, which have experienced difficulties, are expected to recover competitiveness and beef up sales in emerging markets and for compact cars, which have been Hyundai’s strongholds,” he said. However, Yang went on to say that Hyundai will overcome the challenges and will aim for an 8% sales growth this year. The company’s strategy will include increasing the development of eco-friendly cars in 2011 in response to rising oil prices and stricter emissions standards. Hyundai has in the past placed its focus more on fuel efficient cars, instead of hybrid or electric vehicles, but plans are underway for a hybrid version of the Sonata sedan. (March 11, 2011)