This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-25572898
The article has changed 3 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Hyundai and Kia shares hit by sales forecast | Hyundai and Kia shares hit by sales forecast |
(about 1 hour later) | |
Shares of Hyundai and affiliate Kia Motors have dipped more than 5% after the carmakers issued their weakest growth forecast in nearly a decade. | |
Their combined sales are expected to grow by 4% to 7.86 million vehicles in 2014. | Their combined sales are expected to grow by 4% to 7.86 million vehicles in 2014. |
The outlook is lower than the 6.2% growth posted by the two firms in 2013. | The outlook is lower than the 6.2% growth posted by the two firms in 2013. |
The forecast comes amid increased competition from Japanese rivals who have benefited from a sharp decline in the yen's value in recent months. | The forecast comes amid increased competition from Japanese rivals who have benefited from a sharp decline in the yen's value in recent months. |
The Japanese currency fell nearly 20% against the US dollar in 2013. A weaker yen makes Japanese goods more affordable for foreign buyers. | The Japanese currency fell nearly 20% against the US dollar in 2013. A weaker yen makes Japanese goods more affordable for foreign buyers. |
At the same time, the South Korean won has strengthened in recently - making South Korean cars more expensive for foreign buyers and negating some of the price advantage the firms had enjoyed in recent years. | At the same time, the South Korean won has strengthened in recently - making South Korean cars more expensive for foreign buyers and negating some of the price advantage the firms had enjoyed in recent years. |
The won has risen nearly 10% against the US dollar since June last year. | The won has risen nearly 10% against the US dollar since June last year. |
To add to Hyundai and Kia's woes, they have also been facing increased competition in the US from resurgent domestic carmakers Ford and General Motors. | To add to Hyundai and Kia's woes, they have also been facing increased competition in the US from resurgent domestic carmakers Ford and General Motors. |
That has seen their growth in the US - one of their biggest markets - slow. | That has seen their growth in the US - one of their biggest markets - slow. |
Hyundai chairman Chung Mong-koo said: "Competition among companies is intensifying, as the global economy has entered an era of low growth". | Hyundai chairman Chung Mong-koo said: "Competition among companies is intensifying, as the global economy has entered an era of low growth". |
Hyundai has also been hurt in recent months by a series of strikes by staff over pay, which resulted in fewer vehicles being produced at its South Korean factories. | Hyundai has also been hurt in recent months by a series of strikes by staff over pay, which resulted in fewer vehicles being produced at its South Korean factories. |