By Lee Min-hyung
Hyundai Motor and Kia have obtained A scores from the world’s prime three scores businesses on their wholesome monetary administration and versatile car manufacturing functionality, the carmakers stated Monday.
After S&P International Scores upgraded their credit score scores from BBB+ to A-, the 2 carmakers have joined an elite group of carmakers with a triple-A score from S&P, Moody’s and Fitch Scores. Solely 4 different international carmakers — Mercedes-Benz, BMW, Toyota and Honda — have achieved this distinction.
This was made doable by the Korean carmakers’ first rate working revenue ratio pushed by its strong gross sales throughout each hybrids and electrical automobiles (EV).
The 2 associates from Hyundai Motor Group achieved a mixed working profit-to-sales ratio of 10.7 % within the first half of 2024, the biggest amongst international carmakers.
The strong earnings development was fueled by their improved product combine and growing international market share. Hyundai Motor Group is one of some international carmakers able to flexibly adapting to any adjustments in market demand. The carmakers have determined to position a strategic shift on hybrids after the worldwide EV trade entered an early section of chasm this 12 months earlier than their anticipated mass adoption.
The newest final result additionally allowed the carmakers to surpass their rivals by way of credit score scores. Common Motors, Ford and Stellantis received B scores from the three scores businesses, whereas Volkswagen additionally obtained a BBB+ score from S&P.
“The excessive worldwide evaluations replicate our product and model competitiveness, profitability, monetary soundness and international market place,” a Hyundai Motor official stated.
“The businesses forecasted our balanced portfolio, together with each EV and hybrid fashions, to allow us to adapt to market adjustments in the course of the electrification transition interval. Hyundai Motor will maintain garnering efforts to keep up monetary soundness and strengthen international competitiveness by responding flexibly to market adjustments.”