Hyundai Motor, Hyundai Steel tie up for fuel-economy goal

Drawing on its ties with Hyundai Steel Co., Hyundai Motor Co. plans to double the proportion of high-strength steel used in its vehicles by 2015. Hyundai Steel is 21% owned by the carmaker’s affiliate, Kia Motors Corp. By using advanced forms of the metal that match or exceed other Korean and Japanese steelmakers’ alloys in cost and performance, Hyundai Motor will raise the ratio of high-tensile steel in its vehicles to 50% from 18%, said Cho Won-suk, senior executive vice president of research at Incheon, Korea-based Hyundai Steel. “Light-weighting designs will be one of the most important factors in enhancing fuel economy,” he said. Hyundai Steel is adding a third mill, with at least 100 more metallurgists, to help Hyundai Motor cut vehicle-frame weight by 10% by 2015. (February 10, 2011)