Hyundai records five-year profit low

Hyundai Motors failed to meet estimates and posted its lowest quarterly profit in five years, due mainly to the cost of heavy discounts on small sedans and a decrease in sales. At its peak in 2011, more than 5 per cent of cars sold in the US were a Hyundai, according to Reuters. This was driven by the popularity of the Elantra and Sonata sedans. Recently, however, buyers have been more interested in other small sedans, such as the Honda Civic. The resurgence of SUVs in the wake of low oil prices globally has also hurt Hyundai sales figures. Zayong Koo, Hyundai vice president in charge of investor relations, cited concerns that President Donald Trump could impose high tariffs on vehicles imported into the US at an earnings call on Wednesday. “We will continuously monitor the policy changes of the Trump government, and minimize its impact on our sales and profitability,” he said. Last week, the Associated Press reported Hyundai Motors president Chung Jin Haeng announced the company was planning to invest heavily in US manufacturing. He also expressed interest in building the supply of Santa Fe and Tucson SUVs to the US market to capitalise on rising demand. Hyundai Motor and its affiliates, including Kia Motors Corp, is the fifth-largest car maker globally and has recently struggled to penetrate the American market, with one of the lowest ratios of cars build in the US to cars sold. The company reported a fourth-quarter net profit of $1.2 billion, down 39 per cent from the previous year, and the lowest since the first quarter of 2012. According to Reuters, analysts expected a net profit of $1.8 billion. Shares dropped 3.1 per cent at the news, ending at 142,000 KRW.