STRIKES THREATEN HYUNDAI MOTOR 2001 SALES TARGETS

Dec. 3, 2001 - Labor unrest at Hyundai Motor’s Korean factories affected November sales figures and threaten to undermine the company’s 2001 sales targets.

Although figures released for November show that Hyundai Motor’s sales remain up compared to last year, disruption at the factories could affect the full year figures.

Labor union members took short-term strike action to protest against any possible lay-offs due to future restructuring plans at the company. The action disrupted production of most models and particularly affected month-end export shipments.

Modest increase

Although the figures showed a continued modest increase year on year the action did impact on planned shipments for the month, affecting both domestic sales figures and exports.

In November Hyundai Motor sold 60,004 cars in the Korean market – down 5.9 per cent compared to the previous month and although exports of 84,301 were slightly up over October, the figure was down 8.9 per cent compared to November 2000.

For the year to date domestic sales of 664,810 were 9.9 per cent up on the same period last year when 806,299 vehicles were sold. Exports showed a lower increase of just 3.3 per cent with shipments of 833,232 compared to 806,299 because of the strike impact.

Total sales in November of 144,305 were only 201 units higher than in October, but were up by 4.8 per cent compared to November last year.

Increase slowed

The increase in total sales for the year so far had slowed due to the industrial action to just 6.2 per cent with 1,498,042 sold so far this year compared to 1,410,964 in 2000.

The strike action affected sales of all Hyundai car models in Korea during November and only Trajet and Santa Fe showed any increase amongst passenger vehicle sales.

Bus sales and truck sales were also affected compared to October, although showed modest increases in the year to date figures compared to last year of 8.7 per cent and 2 per cent respectively.

For further information please contact the Hyundai Motor Company Overseas Public Relations Team. Stephen Kitson, Director, tel. (82) 2 3464 2545 or e-mail s.kitson@hyundai-motor.com or Sang W, Park, tel. (82) 2 3464 2548 or e-mail swpark@hyundai-motor.com

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