Hyundai Suffers 1st Domestic Loss Since Going Public
03 April, 2019
Hyundai has suffered its first-ever domestic loss since the carmaker was listed on the stock exchange in 1974. The main reasons are rising raw material costs and heavy spending.
Hyundai said Tuesday that it suffered an operating loss of W59.3 billion in 2018 (US$1=W1,137). In 2016, it achieved an operating profit of W2.7 trillion and the following year W2.2 trillion.
The carmaker blamed rising raw material costs and research and development spending. The price of aluminum rose from US$1,969 per ton to $2,110. In fact, revenues rose 3.7 percent last year, but R&D costs surged 10.6 percent.
"R&D costs will continue to rise to prepare for future technologies including self-driving and intelligent cars, so it won't be easy to achieve massive profits for the time being," an industry insider said.
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