South Korea's carmakers respond to global sales slump

South Korean carmakers, led by Hyundai Motor Co. and its affiliate Kia, suffered a shocking 18.2% decline in output in November as the global economic downturn dampened global demand for vehicles. “To overcome the crisis facing the auto industry, we need to diversity export markets and improve the competitiveness of small cars,” Kia Motors Chief Executive Officer Cho Nam-hong said. Hyundai, Kia and other local carmakers are taking various steps to reduce their rising inventories by cutting daily work hours or shutting down production lines. The South Korean government is reportedly moving to reduce consumption tax on vehicles by 30%, to help local carmakers improve domestic sales. (December 8, 2008)