South Korea’s largest automaker Hyundai Motor Co. and its sister company Kia Motors Corp. have set out to bolster the lineup of sport utility vehicles overseas and give priority support to marketing and sales in 2017, as a countermeasure to sluggish demand fed by the economic slowdown around the world.

The plan was laid out after some 50 heads of the companies` overseas operations completed a six-day strategy meeting that began last Thursday at Hyundai Motor Group’s headquarters in Yangjae-dong, Seoul.

A grim mood dominated the year-end meeting, underscoring the graveness of the situation where the world’s fifth-largest automaker missed its early year target of 8.13 million units this year, coupled with a murky outlook for the car market next year. Global car demand is expected to grow a mere 1 percent next year, the lowest level since the 2008 global financial crisis.

Hyundai and Kia came up with five countermeasures including expanding their SUV lineup, establishing a system to give priority support to marketing and sales, tapping into new markets, sharpening the competitive edge of passenger cars and improving quality and customer services. In particular, both Hyundai and Kia will introduce new small SUVs next year, while Kia Motors will launch a new localized version of its flagship SUV “Sorento” and more affordable mid-size SUVs in China next year.

The carmakers will also increase car output overseas. Mexico plant will churn out new models of Kia’s best-selling sedan “Pride” (also known as “Rio” overseas), while Alabama plant in the U.S. will produce facelift models of Hyundai’s flagship sedan “Sonata,” with Brazil plant Hyundai’s compact SUV “Creta.” Assembly lines in China will produce region-specific “Sorento” and other new models.

By Lee Seung-hoon

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