By Jane Han
Staff Reporter
Hyundai Motor's i30cw was recently named the ``Best Company Car 2009'' in the Czech Republic less than a year after the vehicle was first introduced on the market. Not a bad start for the carmaker, which is using the central European country as a strategic base to take Europe by storm.
The Czech Republic has been a popular strategic location among many foreign automakers that make inroads to take advantage of the country's cheap and skilled workforce and close proximity to both established and emerging markets in the European Union (EU).
Hyundai is considered a latecomer in the region ― which is already home to companies including Toyota, Fiat, Volkswagen and Suzuki ― but the Korean auto giant is raising its profile at full-speed.
With the completion of its 1.12-billion-euro plant in Nosovice, about 360 kilometers east of Prague, Hyundai aims to manufacture, market and sell its vehicles throughout Europe more efficiently by reducing logistics costs and cushioning losses from currency volatility.
``The global production network will enable the company to supply top-quality vehicles to customers around the world more quickly and efficiently,'' Hyundai Motor Vice Chairman Chung Eui-sun said in September, when the company officially completed the Czech auto plant.
The factory ― which began mass producing in November 2008 ― currently manufacturers the i30 and i30cw compact cars, but plans to produce sport-utility vehicles starting sometime in the second half of this year.
The Czech base has an annual production capacity of 200,000, but the output will be ramped up to 300,000 by 2011, according to Hyundai officials.
With input from the new plant, the world's sixth-largest carmaker aims to sell 336,000 vehicles in Europe this year, up more than 17 percent from last year.
Hyundai's initial performance in Europe is rated high: But how will the Korean firm continue to attract European consumers?
Company officials say boosting its brand image is key to winning European consumers who are used to high-end labels.
Besides building huge factories and expanding its giant sales network, Hyundai is focusing on training professional staff to communicate a consistent brand message to the market.
The company started fronting its new slogan ``True Quality Matters,'' instead of the globally-known ``Drive Your Way'' campaign to raise awareness that Hyundai cars, after all, aren't cheap. It also went for a softer appeal by supporting various events, including the FIFA World Cup.
With the addition of the plant, Hyundai now operates a total of five manufacturing bases overseas. The facilities in the U.S., China, India, Turkey and the Czech Republic have a collective annual capacity of 1.9 million vehicles per year.
The speedy cross border expansion is helping the carmaker accelerate global sales.
Hyundai Motor's sales of overseas-produced vehicles this year broke the 1-million mark last month, the first time the car maker surpassed the figure during the third quarter.
``Vehicles produced overseas are taking up a bigger percentage in our overall sales,'' said a Hyundai official. ``Once Kia's plant in Georgia begins full operations next year, we're going to see global production take a bigger chunk in sales.''
Hyundai's Chief Financial Officer Chung Tae-hwa said the company aims to sell 3 million vehicles globally by the end of 2009.
``The introduction of new cars and growing signs of economic recovery are going to help power our results,'' he said after announcing the company's quarterly earnings.
The company bucked the downturn in the quarter ended Sept. 30, driven by a weaker won and strong sales in the U.S. and China. It posted a record-high profit of 979.1 billion won ($862.2 million), up three-fold from a profit of 264.7 billion won a year earlier.