Hyundai Cost Cuts Spare R&D in Push to Match Toyota

Discussion in 'Hyundai' started by Right Lane Cruiser, Mar 24, 2009.

  1. Right Lane Cruiser

    Right Lane Cruiser Penguin of Notagascar

    [​IMG] Lee said Hyundai and Kia are spending about “$3 billion” annually on R&D.

    [XFLOAT=RIGHT][/XFLOAT]Alan Ohnsman and Seonjin Cha - Bloomberg - Mar. 24, 2009

    These guys are coming on strong! --Ed.

    Hyundai Motor Co., Asia’s fourth- largest carmaker, plans to keep research spending at about 5 percent of sales even as it slashes other costs as the company aims to match Toyota Motor Corp. and Honda Motor Co. in fuel- efficient autos.

    The Seoul-based company completed a 3 trillion won ($2.2 billion) cost-reduction program last year, led by Vice Chairman Lee Hyun Soon. Research and development spending won’t be reduced, Lee said in an interview yesterday.

    “We have to catch up,” said Lee, head of R&D for both Hyundai and affiliate Kia Motors Corp., in an interview in Hwaseong, South Korea. “People are expecting cars to be more fuel-efficient and lower cost.”

    Hyundai has boosted U.S. sales 4.9 percent so far this year in contrast to Toyota and Honda, helped by the won’s 10 percent drop against the dollar. Next year, Hyundai will introduce its first... [RM][/RM]

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