The
affiliated auto manufacturers Hyundai
Motor Company and Kia Motors are
aiming to triple the number of “fuel-efficient cars” that they have on offering
by 2020, according to recent reports.
The
move is intended as a means of improving the manufacturers’ image and standing
with regard to competitiveness in fuel economy — partly owing to concerns
raised by investors about the fact that Hyundai’s latest Genesis, and Kia’s Soul, have lower fuel mileage
than their predecessors. Also, concerns are partly owing to the relatively
recent $350 million fine received in the US for the overstatement of vehicle
fuel economy.
The
announcement of the recent aims comes only a week or so after the pair also
pledged to increase the fuel
economy of their offerings by 25% by 2020 — to meet emissions regulation
standards in the US, Europe, and South Korea.
The
pair also made the announcement recently that it would buy back 670 billion won
($602 million) worth of shares. This move was reportedly made as a means of
appeasing investors who were angered at a recent $10 billion bid for a piece of
property to be used as a new
headquarters.
As
analyst Yim Eun-young of Samsung Securities, put it: “Investors have complained
about Hyundai’s lack of shareholder-friendly policies and communication about
its vision, especially after the land deal. Today’s announcement seems to be
part of its efforts to soothe shareholders and better communicate with the
market.”
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