Hyundai Plans For U.S. Pickup Truck Put on Shelf -

Hyundai Plans For U.S. Pickup Truck Put on Shelf

plans shelved amid surging oil prices will hit demand for gas-guzzling vehicles

SEOUL, May 9, 2008 –  Cheon Jong-woo writing for Reuters reported that Hyundai Motor Group, the world’s sixth-largest automaker, said May 9 that it had shelved plans to produce a pickup truck in the United States amid concerns surging oil prices will hit demand for gas-guzzling vehicles.

Hyundai Motor Group had planned to produce mid-sized trucks at subsidiary Kia Motors Corp’s new factory in Georgia to make inroads to the world’s top pickup truck market.

"We have an interest, but because of high oil prices, the light truck market has been declining. We don’t think it’s the right time to produce (the truck); it’s not the right economic environment," Kim Dong-jin, Hyundai’s vice chairman, was quoted as saying by a company spokeswoman.

"Kia is well-adapted to make the pickup truck and so we investigated the possibility while building the Georgia plant. However, with this economic environment, we were forced to give up these plans," said Kim, according to spokeswoman Song Meeyoung.

But the plans may be reviewed when economic conditions improve, Song said.

With oil prices continue to hit record highs customers have shunned low-mileage cars such as pickups and sport utility vehicles (SUVs).

Hyundai Motor Co has a factory in Alabama, which produces 300,000 vehicles a year, and Kia is building a plant in Georgia with the same capacity.

Hyundai’s Kim said the company might make a car at Kia’s plant, which will be completed by the end of 2009, according to Song.

"We may produce a Hyundai car at the Kia plant if the platform is compatible," Kim was quoted as saying.
Earlier in the week, a Hyundai Motor Group official said Kia was considering manufacturing an SUV at its first US factory.

Editing for Reuters by Jonathan Hopfner

You May Also Like

AWDA Aftermarket Challenge Update

The annual campaign raises funds for scholarships and programs that strengthen the aftermarket through education.

The 2022 AWDA Aftermarket Challenge is underway and the program groups are all in, according to Bob Egan, MAAP, chairman of the University of the Aftermarket Foundation.

The annual campaign is supported by program groups, aftermarket suppliers, manufacturers’ representatives and other industry organizations to raise funds for scholarships and programs that strengthen the aftermarket through education. The following organizations have committed to participation in the 2022 Challenge to date.

Standard Motor Products Launches 365 New Numbers

The new release includes parts for import and domestic vehicles with gasoline, hybrid, and electric powertrains.

WIN Launches 2023 Sponsorship Program

WIN says the campaign is vital to its mission to attract, retain and advance women in collision repair industry.

Autoshop Solutions Supports Techforce Champion Campaign

Autoshop Solutions’ customers and friends are receiving a special offer to be come a TechForce Champion.

Women in Auto Care Scholarship Program Makes $1M Milestone

This was another record year for the program, distributing 96 awards worth $300,000 in both cash scholarships and starter tool sets.

Other Posts

Wyotech Works On Drawing Women To The Trades

Three WyoTech students were recipients of the JCF scholarship, which empowers young women to pursue careers in trades.

Bosch Releases 133 Automotive Aftermarket Parts YTD 2022

Bosch says these new products cover more than 34 million vehicles in operation across North America.

Standard Motor Products Grows Ignition Coil Program

Additions to the program include more than 800 coils providing 99% coverage for import and domestic vehicles.

ASE Summer Testing Period Registration Ends Sept. 30

Those service professionals who register will have 90 days to schedule an appointment to take the selected ASE tests.