Hyundai Motor Plans To Cut China's JV Plant Selling Cost By 30%: Report
Portfolio Pulse from Lekha Gupta
Hyundai Motor Co has reduced the asking price for its auto plant in China by 30% to 2.58 billion yuan ($353.38 million). The plant, located in Chongqing, is part of a joint venture with Beijing Automotive Group Co. The sale is part of Hyundai's plan to revise its business strategy in China due to strong price competition and weak demand. The company is selling the plant's land use rights and equipment, which has an annual capacity of 300,000 cars.
October 09, 2023 | 3:32 pm
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Hyundai's decision to cut the asking price for its auto plant in China could potentially impact its short-term financial performance. However, the move is part of a broader strategy to revise its business operations in China, which could have long-term benefits.
Hyundai's decision to cut the asking price for its auto plant in China is a significant move that could potentially impact its short-term financial performance. However, this move is part of a broader strategy to revise its business operations in China, which could have long-term benefits. The impact on the stock price is uncertain in the short term as it depends on how investors perceive this strategy.
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