Hyundai to Produce
Environmentally-Friendly Cars

Motor firm to produce hybrid, bio-diesel, ethanol cars at its Brazilian plant

Chairman Chung Mong-koo of Hyundai Motor Co. said cars to be produced at the yet-to-be-built Brazilian auto plant will be powered by ethanol.
Meeting reporters following his lecture for new employees of both Hyundai Motor and its sister automaker Kia Motors, Chung said preparations are underway to build an auto plant in the South American country with negotiations with the local and state government completed, including the issue on the selection of a site.
The company plans to wrap up the negotiations on incentives with the central government soon, the chairman said. Hyundai Motor plans to turn out ethanol cars to bring ?reen management?to global markets when its projected auto plant to be built near Sao Paolo is completed in 2011.
The company? first auto plant in South America is to be the center of the Korean auto company? operations in Latin America, in tandem with the company? auto plants in all of the so-called BRIC nations.
At the special lecture for new employees of both Hyundai and Kia auto companies,
he declared that the two companies, under the wing of the Hyundai-Kia Automotive group, will be able to produce 6 million cars annually from 2010 to account for 9 percent of the world car market.
Chung knows too well that the world car market is in a sluggish condition including the big three U.S. automakers, but he will opt to take advantage of the situation by turning it into an opportunity for his firms to make further advances into the world auto market by expanding its market share.
He said he would complete the details of the project during his Chuseok holiday tour of jobsites around the world including a trip to Brazil to visit the projected site for the new auto plant and a tour of the United States to inspect the Kia Motors Georgia plant, which is scheduled to be finished in February next year, and other Hyundai and Kia car plants in the U.S.
Chung and his assistants will inspect the progress of the car plant now under construction overseas and size up world car market conditions during the tour, as demand for cars worldwide is changing rapidly. They are also paying keen attention to the development of auto production technologies during the trip, especially environmentally friendly cars.
The company? decision to produce ethanol-powered cars at its Brazilian plant is to boost its image as a maker of environmentally friendly cars, which will be a mainstream model of cars in the future and, therefore, the foundation of the company? future growth engine as well for the national economy.
Chung is also for strengthening the competitive edge of the company? small cars with demand on the rise for fuel-saving cars around the world. Hyundai Motor? car plants overseas, such as those in India, China and Russia, will have their car production facilities strengthened to produce small and medium-sized cars.
He said both Hyundai and Kia will start producing hybrids from July next year, confident of their hybrid cars?acceptance in the world car market.
Chairman Chung also rejected outright any suggestion that the automotive group take over a foreign car maker now on the verge of selling part or all of its operations as a means of restructuring.
Hyundai Motor must produce ethanol cars in its projected plant in Brazil to secure an optimum share of the country? car market, which is dominated by ethanol-powered cars.
In the 1970s, Brazil pushed the production of ethanol from its abundant corn production and the government made it mandatory to mix as much as 25 percent ethanol with gasoline.
With the measure, the consumption of gasoline has been cut in half in the country.
Hyundai Motor officials said they have developed technologies to produce car engines that burn ethanol to cope with the need for ethanol and bio-diesel-powered cars expanding to such car markets as the U.S., China, Southeast Asia and others. nw

Chairman Chung Mong-koo of the Hyundai-Kia Automotive Group addressing new employees of the auto companies.