Blindsided by SUV boom, Hyundai Motor trims costs and perks

Seoul

HEADED for a fourth straight annual profit decline, Hyundai Motor is trimming its cost fat; scaling back on business-class flights and annual family home trips for overseas employees, executives told Reuters.

The South Korean automaker has been hit by its exposure to weak emerging markets, and a product line-up that features more sedans than sport utility vehicles, just as SUVs have become more popular across many global markets.

The belt-tightening - which also includes cutting back on printing and fluorescent light bulbs - aims to buy Hyundai time to prepare new models and a design revamp.

"We're trying to address a mismatch between the market trend and our product line-up," said one Hyundai insider, referring to a need for more SUV models. "That's a longer-term plan. For now we're …