Hyundai, Honda gather speed

SEOUL: Toyota Motor, Hyundai Motor, and Honda Motor, advanced after the Bush administration agreed with congressional Democrats on a tentative plan to rescue US automakers, protecting jobs and parts suppliers.

Hyundai jumped 9.2% to 47,050 won in Seoul trading. Honda rose 10% to ��2,035 and Toyota gained 6.6% to ��2,930 on the Tokyo Stock Exchange. General Motors and Chrysler are seeking at least $14 billion in combined aid to keep from running out of cash by early next year. Averting a collapse of the carmakers would also help protect suppliers that serve the Asian-based carmaker���s US production.

���No one would gain from the collapse of the US Big Three, which could bring a catastrophe in real economy and in auto demand,��� said HI Investment Choi Dae Sik.

An agreement ���is the best result we wanted to hear.

���The US legislation would include specific protections for taxpayer money, including the appointment of a so-called car czar who could force the companies into Chapter 11 bankruptcy if the companies don���t come up with their own plan by the deadline of March 31, according to an administration official, who briefed reporters on the condition of anonymity.

���It���s easing concern and boosting share prices,��� said Koji Endo, an auto analyst at Credit Suisse Securities (Japan) in Tokyo. Even with the US government���s support, the US carmakers would have difficulty in recovering competitiveness against Toyota, Hyundai and other Asian makers, which will expand their market shares eventually, Choi added. The US is Hyundai���s biggest overseas market.