South Korea’s Hyundai Motor Group that owns the country’s two biggest carmakers Hyundai Motor Co. and Kia Motors Corp. are expected to set a combined sales target of about 8.2 million units for 2017, little changed from this year’s goal, during an year-end meeting of heads of its foreign subsidiaries that will be led by the group’s Chairman Chung Mong-koo.

According to the company, it will convene an annual meeting with heads of overseas sales units on December 19 and 20 to analyze this year’s sales record and discuss business strategies for next year. The meeting led by Chairman Chung will be attended by key management including Hyundai Motor’s Vice Chairman Chung Euisun and about 60 heads of Hyundai Motor and Kia Motors’ foreign sales units.

According to sources from the industry, at the meeting, the group is expected to set next year’s sales target at around 8.2 million units, up from 8.13 units for this year, as its manufacturing capacity has been expanded following the commencement of mass production at Hyundai Motor’s new 4th assembly line in China and Kia Motors’ new Mexico factory this year. Both auto makers also plan to release a series of new models next year, and sales of Hyundai’s premium brand Genesis sedans are expected to take off next year, which should help bolster sales volume of Hyundai and Kia vehicles.

The group set the sales target of 8.13 million units for this year after it failed to meet its goal to sell 8.2 million units in the previous year. In 2015, the combined sales of Hyundai Motor and Kia Motors only reached 8.01 million units.

The group initially considered postponing the meeting of heads of overseas sales units as it has been busy with preparing Chairman Chung’s parliamentary hearing and prosecutors’ summons related to the country’s political power abuse scandal involving President Park Geun-hye and her close friend Choi Soon-sil. However, it was urged to proceed with the planned meeting in the wake of mounting concerns over growing protectionism on the global trade front and a possible rise in anti-trade measures under the new U.S. administration led by Donald Trump next year, according to sources.

“We need to preemptively respond to changes in the global economy as Hyundai Motor and Kia Motors make 80 percent of their sales from overseas markets,” said an unnamed high-level official from the Korean auto group.

It also decided to carry out annual year-end personal reshuffle as planned. But as this year has been the toughest for the group with its presence at home and abroad shrinking and lengthy labor union strikes adding its woes, the number of executives who receive promotions would stand at the lowest-ever this year, much lower than the average of 300. The group expects the number of management notified to leave the firm would double the number of people promoted in this year’s management shake-up.

By Lee Seung-hoon

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]