Hyundai, Kia deny Apple car talks, send shares tumbling

SEOUL - South Korean automaker Hyundai and its affiliate Kia on Monday denied news reports they were in talks with Apple for a joint project to make autonomous vehicles, sending their shares tumbling.

The announcement came about a month after the country's cable broadcaster Korea Economic TV said the iPhone maker had approached Hyundai to discuss a potential partnership to develop electric vehicles and batteries for them, sending the car maker's shares soaring.

Reports last week suggested they could produce cars in the US state of Georgia.

But on Monday Hyundai and Kia said in regulatory filings they were "not discussing autonomous electric car development with Apple".

Both automakers added that they had talked with multiple firms about such projects, but no decision had been made.

Hyundai said those talks were in their "early stages".

Kia shares slumped 14.98 percent at the close in Seoul on Monday, while Hyundai fell 6.21 percent.

Consumer interest in eco-friendly vehicles has mounted in recent years with Tesla largely taking the lead in the sector.

Apple's Project Titan is devoted to self-driving technology but the firm is known for being ultra-secretive about its business.

Hyundai, South Korea's biggest automaker, has already rolled out fully electric cars, including the Ioniq and the Kona Electric, as it seeks to win a slice of the growing market.

But Apple has never acknowledged talks with Hyundai, despite several news reports claiming they were close to a deal.

Agence France-Presse

Hyundai, Kia aim to grow 2017 sales to 8.25 million vehicles globally

SEOUL - Hyundai Motor Co. and affiliate Kia Motors said on Monday they aim to increase their combined sales to 8.25 million vehicles globally in 2017, despite rising competition.

The 2017 target is slightly higher than their 2016 goal of 8.13 million vehicles. The South Korean automakers' final sales figures for 2016 are due out later on Monday, with analysts expecting a miss due to weak demand in emerging markets.

"The 2017 goal is slightly higher than my projection," said Ko Tae-bong, an auto analyst at Hi Investment & Securities, adding that the performance of new models would be the key to success after some disappointments in recent years.

With emerging markets such as Russia stabilizing, and with Hyundai and Kia Motors gearing up to boost vehicle supply to the United States and China, sales could get a lift this year.

But Hyundai Motor and Kia Motors - which together rank fifth in global sales - plan to add capacity in China and Mexico this year, just as those markets and the United States are seen slowing, likely pressuring margins.

"With the global economy continuing its low growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever," Hyundai Motor Group Chairman Chung Mong-koo said in his New Year message to employees.

Hyundai Motor likely clocked its fourth straight annual profit decline last year, hurt by its higher exposure to weak emerging markets, and a product line-up that features more sedans than sport utility vehicles, just as SUVs have become more popular across many global markets.

Hyundai Motor is targeting 2017 global sales of 5.08 million vehicles, while Kia Motors set its goal at 3.17 million vehicles.

Kia Motors Vice Chairman Hank Lee told employees on Monday that the automaker hoped to revive growth this year, after falling short of its 2016 sales target.

Hyundai Motor shares were flat in a wider market .KS11 that was down 0.4 percent in early morning trade, while Kia Motors shares were down 0.3 percent

Hyundai Motor shares fell for a third straight year in 2016, down 2 percent versus the wider market's 3 percent gain. Kia Motors shares slumped 25 percent last year, making them the worst-performing stock among major car makers in the world.

source: news.abs-cbn.com