Hyundai Motor Group chairman Chung Mong-koo flew to the U.S. on Tuesday to pay on-site visits to production lines in the United States and Mexico and to boost the morale of employees overseas, the automaker said.
During his first overseas business trip, lasting four days, he is scheduled to visit the production sites of both Hyundai Motor and Kia Motors, and the construction site of Kia’s new production plant in Monterrey, Mexico.
“His visit to the U.S. reflects the significance of the market for the group’s 2015 performance (in auto business),” the company said in a press release.
Demand for Hyundai and Kia cars in the U.S., one of the largest but most competitive markets, is projected to grow this year.
The nation’s largest carmaker expects U.S. demand to increase, in particular, for sport utility and crossover utility vehicles.
Based on the market demand, Hyundai Motor Group allegedly has reviewed a plan to build a new plant in the U.S. focusing on the SUV and CUV segments.
It is not certain whether or not he will visit candidate sites for the new U.S. plant.
Throughout each site visit, chairman Chung will address his push for a strong focus on managing quality at the highest level, the company said.
“He will directly examine the production quality of the recently launched all-new Sorrento and request that the plants prepare comprehensively for the successful production of upcoming Optima and Elantra models in the second half of the year.’’
In 2014, both Hyundai and Kia achieved record-high sales in the U.S. Hyundai Motor America sold 726,000 units and Kia Motor America sold 580,000 units last year. The combined sales rose 8 percent compared to 2013.
“This year poses a number of challenges for us. As the euro and yen continue to depreciate and the demand for large SUVs and pickup trucks is reignited, we can expect fierce competition from global rivals,” chairman Chung said before his trip.
“As we have done in the past, we need to address these issues head-on by taking the opportunity to leverage the trend of increasing SUV/CUV sales, with the launch of our new models and implement innovative marketing strategies.”
By Seo Jee-yeon (
jyseo@heraldcorp.com)