Overseas operations of South Korea’s top automaker Hyundai Motor Co. and its sibling Kia Motors Corp. idled mostly due to virus pandemic delivered heavy losses in the first quarter and will likely do worse in the second.
According to the Korean auto conglomerate on Monday, Beijing Hyundai Motor, a joint-venture between Hyundai Motor and BAIC Motor, reported a net loss of 239 billion won ($195.2 million) in the first quarter ended March, reversing from a profit in the final quarter of last year. Sales more than halved on quarter to total 937.9 billion won in the period.
Hyundai Truck & Bus (China), formerly Sichuan Hyundai Motor that is currently wholly-owned by Hyundai Motor, posted a net loss of 34.2 billion won with sales of 37.4 billion won.
Hyundai Motor America delivered a net loss of 48.3 billion won, Hyundai Motor Brazil 48.2 billion won, and Hyundai Motor Russia 12.9 billion won.
Three months ago, all its overseas units except for U.S. operations registered positive numbers in their bottom line.
Kia Motors was no better. Its Chinese joint-venture Dongfeng Yueda Kia Motors logged a net loss of 139 billion won, with sales of 600.6 billion won. Its local sales volume plunged to some-1,000 units in February amid waning auto demand due to the COVID-19 outbreak.
Kia Motors Mexico and Kia Motors India finished the quarter, with 20.4 billion won and 2.5 billion won, respectively, in the red.
Hyundai Motor shares closed Tuesday 7.83 percent higher at 99,100 won in Seoul, and Kia Motors 8.01 percent up at 31,700 won.
By Park Yun-gu and Lee Ha-yeon
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