Hyundai and Kia have postponed the launch of hybrid versions of their Verna and Pride vehicles until 2009. Hyundai and Kia spokespeople say that the cars, which were originally due in 2007, won't be big enough moneymakers to justify putting them on the market. Company officials are also a little concerned at the prospect of government aid to subsidize the losses incurred by the company through product development -- evidently, there is a risk that lowering the prices of the hybrids after receiving state funds could trigger a petition to the World Trade Organization, dunking the car companies in more legal hot water.
The Korean government isn't happy about the delay, however, citing an ever-widening hybrid technology gap between its homegrown auto manufacturers and Japanese companies such as Toyota.
[Source: The Korean Times]
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Reader Comments (Page 1 of 1)
Ben @ May 23rd 2006 1:35PM
"The Korean government isn't happy about the delay, however, citing an ever-widening hybrid technology gap between its homegrown auto manufacturers and Japanese companies such as Toyota."
lol. It normal that "world-class" car companies like Hyundai can't compete with "Galaxy-class" car companies like Toyota.
Ryan @ May 23rd 2006 1:54PM
"lol. It normal that "world-class" car companies like Hyundai can't compete with "Galaxy-class" car companies like Toyota."
-If Toyota actually had this mentality, they would be in a world of hurt.
Navigation Blog @ May 23rd 2006 2:07PM
i really wish hyundai would put this out quicker, but i suppose it just isn't possible
YOUR MOM @ May 23rd 2006 2:20PM
THE DOWNWARD SPIRAL
Glenn A. @ May 23rd 2006 2:27PM
You're not my mom. My mom doesn't shout.
As for Hyundai, well, if the South Korean government want Hyundai and Kia to get off the dime, then they need to get the legal issues over with and fines levied on Hyundai and Kia, so the companies get get back to the business of growing, and improving their tech.
Heck, by the time Hyundai and Kia bring out hybrids, Honda is going to have their hydrogen fuel cell car on the market. So they'll be 12 years behind Toyota and Honda on hybrids, and goodness knows how far behind with fuel cell vehicles.
Perhaps Hyundai and 50% owned Kia will prosper, but with this latest news (which I have to say, I sent to autoblog on Sunday in "send us news tips" - don't I get a hat tip?) I have to wonder how Hyundai Group will make their goal to be 5th largest car company within a few years.
Ryan @ May 23rd 2006 2:42PM
"4. THE DOWNWARD SPIRAL"
Even if this is true, it's not because of there product, but how everything has been managed.
GM on the other hand:
Was both.
Source1 @ May 23rd 2006 2:50PM
"THE DOWNWARD SPIRAL"
You actually just repeated the words of USA TODAY in 1998 when they reported that Hyundai was pulling out of North America. 2.5 million Hyundai's sold later and they are still here and still growing. Their growth will inevitably be hurt by this scandal, but don't count the Koreans out. They have a way of sneaking up on the rest of the automotive world because people take them off their radar. Just ask Mazda, Suburu, Mitsubishi and many other nameplates they are outselling month after month. Downward Spiral? I don't think so. I would call it a hurdle.
Howard Kerr @ May 23rd 2006 3:39PM
The Pride and Verna are very small cars, smaller than a Civic, is there a market outside Korea for such small hybrids?
The Korean government is concerned that Hyundai/Kia will be fall into an ever widening techno gap vis-a-vis the Japanese? So what? In the Korean auto market, the government is using EVERY legal means possible to keep NON-Korean cars out of the hands of it's citizens. The Korean government are lucky the WTO isn't already on their case, about this lack of "free trade". As many countries have found, the U.S. included, when your industries have no legitimate competition...they stagnate and/or fall behind.