Korean carmakers prepare to meet new fuel efficiency targets

South Korean carmakers are preparing to meet new fuel efficiency targets after the government announced that 2% of the country’s gross domestic product (GDP) will be spent on environment-related projects. The country’s top automaker Hyundai Motor Group, which includes the Hyundai and Kia brands, will spend 4.1trillion won (US$3.4 billion) over the next five years developing new vehicles and the technology to reduce emissions. Hyundai will spend 2.2 trillion won (US$1.8 billion) developing hybrid vehicles and 1.4 trillion won (US$1.1 billion) improving the fuel efficiency of its engines. The remaining 500 billion won (US$423.43 million) will be spent on reducing the carbon dioxide emissions from the company’s production plants by 6% by 2012. (July 23, 2009)