South Korea’s Hyundai Motors is the world’s biggest fifth automaker which is associated with Kia motors. Recently, the company has announced that in five quarters their net profit largely goes down due to the increase in local currency value against the dollar. It also forewarns people about the second half as well.
On Thursday, they made an announcement that the company’s net profit fell down 7 percent from last year. In the second quarter their net profit was 2.24 trillion Korean won which are almost equal to $2.18 billion.
According to automaker, a U.S discount plan was also released in order to attract the customers. It dominated on the entire second quarter when the sales healthy in China and Korea.
Company’s net profit collapsed 16 percent in the first quarter affected due to the enormous U.S recalls and the disagreement of South Korean labor.
Lee-won hee, major financial officer, on the announcement of their result said that the company is not that much optimistic about the results of second quarter. Furthermore, he said that Hyundai has some future strategies which include the cut cost, improvement in the portion of high-premium cars and raise in local parts sourcing for the sake of dropping currency exposure. They assume the international auto market to slow down more in the second half a bit, as compare to the first half, due to economic stimulus measure in U.S.