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"The company will spend 20 trillion won ($17.4 billion) a year" Hyundai is big, but that is insane amount of money. They're going to have to finance a lot of i
by pcurve 7y ago
"The company will spend 20 trillion won ($17.4 billion) a year"
Hyundai is big, but that is insane amount of money. They're going to have to finance a lot of it since their profit is "only" $5 billion per year.
Good on them for such bold decision.
- raphaelj 7y agoThey can also partially reallocate their current development spending toward that goal. They are also most probably already spending significant amounts in this area.
- chiefalchemist 7y agoHow does that compare to others in this space? That's nearly $1.5 B per month. How do you ramp up and spend at that level without a noticeable amount/percentage being pure waste? Yes, it's bold. But perhaps too much so?
- pySSK 7y ago> How does that compare to others in this space? It is quite significant. Ford is the biggest one I can think of with about a $1b each for Argo AI and Rivian. Toyota AI Ventures is only $100m.
- utopian3 7y agoYou're right .. this is an insane amount of money. Their total cash on hand at the end of 2018 looks like it was 26,800,814,000 [1]. And yet they spent a record $10 billion on a piece of land (3x the appraisal value) ~5 years ago. [2] https://finance.yahoo.com/quote/HYMTF/balance-sheet/ https://finance.yahoo.com/quote/HYMTF/balance-sheet/ https://www.reuters.com/article/us-kepco-realestate-hyundai-motor/hyundai-motors-record-10-billion-bid-for-trophy-property-alarms-investors-idUSKBN0HD06U20140918 https://www.reuters.com/article/us-kepco-realestate-hyundai-...