Hyundai Automotive Group through its financial subsidiary Hyundai Capital has launched a financing joint venture with General Electric Co., in a drive to upgrade its Korean auto financing and leasing division.
The subsidiary, Hyundai Capital Services Inc., has been revamped as a 62:38 joint venture with GE Consumer Finance.
On a visit to Korea said Jeffrey R. Immelt, GE's chief executive officer noted, "We are excited about the future and opportunities to work together to grow on the consumer finance market in Korea. Very rarely does GE do joint ventures and I believe this is the great opportunity to partner Hyundai.”
The formation is viewed as a win-win for both Hyundai and GE. Hyundai expects to improve the financial health of the ailing sister company and bring in advanced financial expertise from the U.S. partner. GE is understood to have obtained a foothold in Korea's $ 8.7 billion auto-financing market.
Hyundai Capital's chief executive Chung Tae-young will continue at the helm of the joint venture, company officials said.
The venture, which will retain the name Hyundai Capital, unveiled a new auto lease program called KlassAuto and a purchase scheme named AutoPlan. The company said it would introduce more programs to expand in the consumer finance sector.
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