South Korean automaker Hyundai Motor company has been a popular choice in the passenger vehicle segment across the globe. This time around the company has been planned to make its presence felt in the commercial vehicle segment as well. The company has planned to invest about 2 Trillion won (US$1.8 billion) over a period of next six years to aid in research and production of new cars and engines. The new facility is likely to be inaugurated in Jeonju, located at about 240 kilometers south of Seoul, sometime by 2020. the plant shall also be used in the production of commercial vehicles likes buses and trucks.
Speaking more on the occasion, the company stated, “By establishing a global R&D structure through cooperation with world-class research capacity in the passenger vehicle sector and making aggressive investment to develop new cars and engines that will meet different regional demand, we will push to emerge as a global maker in the commercial vehicle area.” About 400 Billion Won is likely to be used in the expansion of the facility, whereas 1.6 Trillion won may be used in the research and development activity. The company is also likely to hire 1,000 new workers to aid in production activity.
The production facility upgrade shall be done in a phased manner wherein the production number is likely to be raised from 65,000 to about 100,000 units sometime by 2020. The facility is also likely to benefit the emerging markets like United states and Europe. To improve its core technologies and facilities the Hyundai Motor Group, which also owns Kia Motors, has announced that the company would spend about 81 trillion won sometime by 2018.
Source: YHN
