During a call on Wednesday, Hyundai Motor reported a fourth-quarter net profit of $858.07 million, its twelfth straight drop in quarterly earnings and lowest return since the start of 2012.
Driven by sales of its Elantra and Sonata sedans, Hyundai’s market share in the United States peaked at five percent in 2011 but has wavered as its mainstays have lost their appeal among American car buyers. Volume declines have led the company to increase incentive spending, driving discounts up 30 percent to an average of $2,582 in December.
Given threats of import tariffs from the Trump administration, Hyundai cautioned that it anticipated further challenges and uncertainty in the U.S. market. The Seoul-based company currently maintains one of the lowest ratios of cars manufactured vs. sold among automakers in the U.S. market.
Hyundai has previously said that it intends to boost its investment in the U.S. by $3.1 billion over the next five years.
The company has also indicated that it is considering adding a U.S. factory to produce SUVs and its Genesis line of premium cars as well as increasing its supply of the Sante Fe and Tucson to capialize on the growing demand for SUVs.
Read full article at: Reuters »