Hyundai Motor And Santander Partner In Europe

A strategic partnership between Hyundai Motor Group and Banco Santander was announced yesterday in Seoul, South Korea. The automaker and the largest European bank will form a joint UK financial firm. They will also promote cooperative ties in the country of Brazil.

Hyundai Motor Group is owner of the two largest South Korean automakers, Kia Motors and Hyundai Motor.

Hyundai Motor Group Chairman Chung Mong-koo welcomed Banco Santander Chairman Emilio Botin to the South Korean headquarters of the automaker on Wednesday. The two agreed to promote their strategic partnership within the car finance sector in Latin American and European markets.

The establishment of a joint finance firm within the UK will enhance the brand image of Hyundai Motor.

By offering car finance services to UK car buyers, the move should also increase sales for the automaker. The Brazilian market is also considered key by both organizations because it is one of the fastest-growing auto markets worldwide.

In 2015, Brazil is expected to become the third-largest auto market in the world. Hyundai Motor is currently constructing a manufacturing facility in the country that will begin producing 150,000 cars annually in November 2012.

A release issued by Hyundai Motor noted that the knowledge and retail financing network of Santander is making it possible to provide better car finance services to car buyers in the Latin American and European markets. Banco Santander was established in 1857 and currently has 13,660 branches.

Hyundai Motor hopes that building up its financing sector internationally will improve its image as a worldwide automaker.

In 2004, Hyundai Capital, the financial arm of Hyundai Motor, entered a partnership with GE Capital. Five years later, Hyundai Capital partnered with Santander to establish a joint financial firm within Germany. In 2010, 46 percent of Kia Motors car buyers in Germany made use of the Hyundai Capital German Gmbh car finance service.