Hyundai Motor Co., the largest automaker of South Korea saw profit slump. The ongoing global economic crisis took a heavy toll on the company. Due to job losses, people have lost interest in buying cars and to attract buyers, the company spent heavily on marketing and raised warranty cost and it affected their profits. Like other companies, Hyundai is taking strict cost saving measures and laying off its employees.

Bloomberg reported:

Net income totaled 243.6 billion won ($177 million) in the three months ended December. That missed the median estimate of 510.3 billion won according to a Bloomberg survey of 11 analysts. Sales rose 1.1 percent to 8.83 trillion won, the Seoul-based automaker said in an e-mailed statement today.

The major advantage of Hyundai is that it does not produce big cars like American automakers. Hyundai model cars are very popular models in India and China. Though the company saw slump in profit, sales of car rose. Like other carmakers around the world, Hyundai have to work hard to survive these tough economic times.