TRANSPORTATION

Finance Charge: Hyundai Motor America is opening its own finance operation to flesh out its presence in the United States and, officials of the South Korean auto importer hope, to improve its competitive posture here.

Most other auto companies have long known that owning a finance company pays off--both in profits from loan-making and by enabling them to sell cars with special promotional rates and loan programs.

The new company, Hyundai Motor Finance, will provide Hyundai dealers an alternative to bank financing for their inventories and will give its 232 U.S. dealers a place to send retail customers, often young buyers with little or no credit history or with poor credit backgrounds.

An in-house finance company can make loans to customers that an independent bank or other lender would avoid. The move is part of an attempt by Hyundai to regain the sales momentum it once had. The importer initially set new car sales records in the United States because of its low prices but has seen sales plunge by more than 30% in the past year, despite the introduction of a new, larger sedan with a V-6 engine.

The finance company will share Hyundai’s corporate headquarters in Fountain Valley with managers and field representative in the company’s regional offices in Fountain Valley, Chicago, Atlanta and Cranberry, N.J.