Hyundai halts sponsoring women’s golf in China
Hyundai Motor has decided to halt its sponsorship of a major women’s golf event in China amid falling sales as a result of escalating Sino-Korea tensions over the latter’s deployment of a U.S. missile defense system.
Korea’s largest carmaker, which has sponsored the contest over the past seven years, said Tuesday its decision came after its collapse in sales this year following the Chinese government’s economic retaliation against Korean companies and their products over Seoul’s decision to deploy a Terminal High Altitude Area Defense (THAAD) battery here.
According to Hyundai Motor, Tuesday, it has decided to withdraw its title sponsorship of the Hyundai China Ladies Open, one of China’s largest golf events organized by the CLPGA.
The tournament had been co-organized by the CLPGA and KLPGA since 2006, and Hyundai Motor became its official title sponsoring company in 2010. It is also one of the official KLPGA tour tournaments where not only Chinese but also a number of Korean golfers have participated in.
Kim Hyo-joo won the Hyundai China Ladies Open in 2012, 2014 and 2016.
Hyundai Motor has also promot- ed its brand and showcased its vehicles in the venue during the event. A Hyundai Motor official said the carmaker’s decision to end its sponsorship of the tournament has nothing to do with its weak sales in China.
“It’s true Hyundai Motor won’t sponsor the China Ladies Open this year,” the official said.
“The sponsorship contract expired this year. It has nothing to do with our sales performance associated with the THAAD row. It is possible Hyundai Motor might sponsor the golf tournament next year.”
Korea’s golf circles said, however, Hyundai Motor’s decision was attributed to recent tensions between Seoul and Beijing.
“Hyundai Motor did not specify why it has halted its sponsorship for the China Ladies Open,” said a KLPGA official. “We assume the carmaker’s weak sales in China could be the reason.”
Specifically, the Hyundai China Ladies Open has been sponsored by Beijing Hyundai Motor, a 50-50 joint venture between Hyundai Motor and China’s BAIC. Hyundai Motor has partnered with BAIC since 2002 when it entered the Chinese market.
The KLPGA said the China Ladies Open will be held as scheduled without Hyundai Motor’s sponsorship while the CLPGA is now looking for a replacement sponsor.
In the January-July period, Hyundai sold 351,292 vehicles in China, down 41 percent from 592,785 a year earlier.
Protesting the Korean government’s decision to deploy the U.S. anti-missile system, Chinese consumers have also boycotted Korean products while some of its competitors have provoked nationalism among Chinese people to rack up their own sales.
Some Volkswagen dealerships in China are reportedly carrying out a special promotion with discounts of up to 16,000 yuan ($2,323) for customers who sell their Korean cars to buy their models.
Another Chinese carmaker is also offering a special gift for customers who cancel their orders for Korean cars.
Earlier this month, Hyundai Motor said its four factories in China stopped operations after a local supplier refused to provide products because of delayed payments.