F&I Management & Training

Hyundai has reported a 38 per cent drop in quarterly profits.

Falling demand, rising overseas warranty costs and strikes have all hurt the South Korean carmaker's business.

Despite this drop and gloomy predictions for the industry as a whole, Hyundai's results were better than anticipated.

The carmaker's shares were up 1.2 per cent on Friday, a drop significantly less significant than that of the wider market, which fell 7.5 per cent on the same day.

Where its Japanese rivals have been hurt by the rising Yen, the South Korean Won's drop against the dollar has helped Hyundai improve its price competitiveness abroad.

Despite shrinking demand in the US Hyundai managed to maintain a 3 per cent market share.

The company's focus on fuel-efficient compact cars has also helped it compete against other manufacturers.

DATED: 27.10.08

FEED: MT