REFILE-UPDATE 1-Hyundai may make small car in US - officials
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SEOUL, Oct 12 (Reuters) - Hyundai Motor Co (005380.KS), South Korea's top automaker, is considering making a small car in the United States as the financial crisis has lifted demand for such models, officials at the company and a car parts maker said on Sunday.
A company president said earlier Hyundai was unlikely to meet its U.S. sales target for this year as the credit crunch hit demand in the world's top auto market.
Currently, Hyundai, the world's fifth-biggest auto maker along with its affiliate Kia Motors Corp (000270.KS), produces the Elantra, its top selling model, only in South Korea and Hyundai would need to talk with its unionised workers to decide to make the car abroad.
"Hyundai is considering producing the next model of the Elantra in the U.S. and we are preparing to supply parts for the car there," an official at a foreign car parts maker told Reuters by telephone, asking not to be identified.
The consideration comes as more customers are looking for smaller cars.
"A recent economic slowdown caused a big jump in even U.S. small car sales and we are looking for the trend," Choi Jae-kook, a president of Hyundai's international sales, said late on Friday.
J.D. Power and Associates said earlier this month worldwide car makers might experience an "outright collapse" in 2009 amid growing concerns about the availability of credit and general economic stress.
A Hyundai spokesman said the company had not decided anything on U.S. production plans.
"We consider various ways to manage U.S. factories efficiently and to meet rising small car demand there but nothing has been decided yet," he said.
BUMPY ROAD IN THE U.S.
Hyundai's aim has been to sell over 500,000 vehicles in the United States this year, compared with 467,009 in 2008. Continued...
