Monday, May 12, 2008

Hyundai Moved from Pickup Truck Manufacturing Plan in the US, Rather Focused on Small Car Segment

Hyundai Motor Company (SEO:005380) has moved from its decision to produce pickup trucks in the U.S. as the consumers are heavily heading towards small cars, instead of pickup trucks in the country. The growing fuel price has contributed to slow down the demand for pick up trucks in the U.S. Hyundai was earlier planning to produce midsize trucks in its subsidiary Kia Motors Corporation’s new factory. Hyundai is now rather planning to manufacture smaller and lighter cars at the Kia Plant in the country.

The Wall Street Journal reported:

Hyundai's decision is the latest sign of turmoil in the truck business in the U.S. Sales of pickups and large sport-utility vehicles have been falling for the past few years amid high fuel prices, declining home values and the aging of the baby-boom generation. News of Hyundai's move was reported by the Financial Times.

No doubt, the consumers of the country are now interested to small car segment because of the soaring fuel price in the international market. Moreover, U.S. economy is facing a recession period at this moment. It is affecting the buying capability of the general people leading them to the small cars. I think, Hyundai has taken the right decision over this matter. Otherwise, it could face loses in the market.