Driving down greener road

Hybrid vehicles key to Hyundai-Kia’s renewed plans for US market

By Kim Tae-gyu

Hyundai Motor Group, the world’s fifth-largest automaker in terms of cars sold in the first half of 2011, strives to make big strides with hybrid vehicles, which are expected to gain significance in tandem with the new U.S. standard of fuel economy.

Late last week, President Barack Obama signed a pact with 13 major carmakers to seek the next phase in the country’s vehicle program, substantially cranking up minimum fuel efficiency.

Under the agreement, companies are required to come up with passenger cars and light-duty trucks, which run at least 23 kilometers on a liter of gas by 2025. By 2016, the distance needs to be more than 15 kilometers.

``As the U.S. government homes in on stronger rules, global automakers feel a sense of urgency. The competition on developing fuel-efficient models will accelerate in the future,’’ a Hyundai Motor official said.

``We are ready. Our cars available in the United States this year already meet the 2016 target on average. In particular, hybrid vehicles continue to gain popularity. We aim to make another quantum leap with hybrids.’’

Hyundai Motor sold more than 1,780 of its Sonata hybrid in the U.S. last month, marking 25-percent growth from the previous month.

After its launch in April there, the Sonata hybrid nudged past similar models from Honda and Ford in June.

The K5 hybrid, known as the Optima hybrid in the U.S., got off to a solid start as it recorded sales of 103 in June when it made its debut and upside of 300 last month.

Hyundai Motor and Kia Motors are the two flagships of Hyundai Motor Group, the second-largest conglomerate in Korea, next to Samsung Group.

``In order to meet the strengthened fuel economy, hybrids will play bigger roles. Hyundai and Kia plan to stage a variety of eco-friendly marketing activities to increase sales of hybrids in the U.S.,’’ the official said.

``It is very encouraging for us to rack up strong sales of hybrids in the U.S., the home of eco-friendly vehicles. As the leader of environmental technologies, we will improve our brand image in the world’s runner-up vehicle market.’’

Hyundai Motor Group’s efforts have already paid off in a handsome manner as shown by a recently released survey.

According to an annual study by Interbrand, a global bellwether in brand management, Hyundai Motor placed 11th on a list of the top 50 international green brands.

Hyundai almost made the top 10 because it was just 0.14 point shy of 10th-ranked Panasonic and was the highest among Korean outfits. The other local firm on the list was Samsung at 25th.

Hyundai and Kia were included in the list of 13 carmakers, which signed the contract with President Obama together with such powerhouses as Ford, GM, Chrysler, BMW, Honda, Jaguar Land Rover, Mazda, Mitsubishi, Nissan, Toyoda and Volvo.

The new standard is estimated to save up to $1.7 billion in fuel costs, which amount to 12 billion barrels of crude as well as cutting about 6 billion metric tons of greenhouse gases over the life of the program.

The 6 billion metric tons of greenhouse gases is equivalent to the nation’s carbon dioxide emission last year.