| It is becoming more evident of Hyundai Motor | | | | increased by 7.6% or 958.8 billion in 2008. Seeing |
| Company's continuous growth in the United States | | | | operating income for Toyota reduced by 2,731.3 billion |
| automotive market. With the 2009 Motor Trend car of | | | | for 2009 explains why period expenses, like research |
| the year, Hyundai is quickly picking up market share in | | | | and development, needed a cut. Toyota writes that it |
| hopes of taking more of the United States market that | | | | is expecting to increase its funding for research and |
| has been dominated by giants such as Toyota Motor | | | | development considerably for the 2010 fiscal year. |
| Corp. | | | | Even with revenue being up for Hyundai, the increase |
| With tough market conditions globally Hyundai has | | | | in their research and development spending must be |
| been able to perform extremely well in 2009. While | | | | offset, at least partially by other expenses. One |
| sales have been on an increase, expense | | | | notable expense cut was director salaries. Through the |
| management has become a focal point for all auto | | | | end of June 2009, salaries for Hyundai executives |
| makers. One area where Hyundai is not reducing their | | | | were down almost 14% from the same mark in 2008. |
| costs is in research and development in hopes of | | | | Along with that reduction, Hyundai was able to trim |
| advancing their product. The company increased their | | | | other selling and administrative expenses by 12%. |
| development expense from 3% of revenue in 2008 to | | | | These figures should be positive for investors, as the |
| 5% in 2009. With fiscal year ending December 31, | | | | company has taken a proactive approach at bettering |
| 2009, Hyundai had increased revenue by nearly 17% in | | | | their product at the expense of executive salaries. |
| the first three quarters ending September 30, 2009 | | | | While Hyundai has taken a risk by increasing their |
| then the previous year. In that same period, research | | | | research and development costs by 43% it could |
| and development costs went up from 410.9 billion | | | | prove to be of benefit in future automotive sales. |
| Korean Won to 585.7 billion Korean Won. That is a | | | | That's the hope of Hyundai executives at least. |
| 43% increase from 2008. Competitors of Hyundai | | | | Current market demands are forcing automakers like |
| however are not mimicking this increased line item. | | | | Hyundai and Toyota to develop the most efficient |
| A much larger company, Toyota Motor Corporation | | | | automobiles, while also keep them cost effective for |
| noted in their 2009 annual review that research and | | | | consumers. By increasing the amount spent on |
| development costs were reduced by 54.8 million or | | | | research and development Hyundai is rapidly |
| 5.7% of revenue from 2008. This was a part of their | | | | advancing their energy efficient automobiles. Hyundai |
| overall decrease in cost of products sold for | | | | was able to thrive in a tumultuous 2009 year for auto |
| automotive operations to offset the decrease in units | | | | makers and looks to be rising fast. What was once |
| sold. Toyota's net revenues took a 21.9% hit for 2009. | | | | seen as a sub-par automobile company could now be |
| Toyota Motor Corporation spent 904.0 billion total on | | | | researching and developing its way up the |
| research and development. The 5.4% reduction is | | | | manufacturing ladder. |
| steep considering that the same expense was | | | | |