Posted on 07/21/2009 9:57:49 AM PDT by SeekAndFind
It's the worst year in history for the industry: Two Detroit companies went bankrupt, and even the Japanese are losing money. But nothing stops those Koreans. Hyundai and Kia are expanding their lineups, a new Kia plant is to open in Georgia, and they are setting most ambitious goals. Their cars may not be the best, but they are improving--many get on the "recommended" list in Consumers Reports--and they are getting major help from the home country's weak currency.
The two are connected under the name Hyundai Kia Automotive Group. Hyundai is larger and owns a 39% controlling stake in Kia. But here in the U.S. they operate separately and have different strategies that appear to be working.
At the end of six months, Hyundai sales of 205,000 cars and trucks were down only 11% from last year and Hyundai's market share was up to 4.3% from 3.1%.
Kia's 147,000 six-month sales were down only 7% in sales, and market share was up to 3.1% from 2.1%.
By comparison, Toyota ( TM - news - people ) sales were down 38% from last year, Honda ( HMC - news - people )'s were down 34%, Nissan ( NSANY - news - people ) down 33%. General Motors ( GMGMQ.PK - news - people ) down 40%, Chrysler 46%, and even Ford was down 34%.
"Slightly down is the new up," says one Hyundai man. They don't see any upturn coming yet, but it just makes them push harder.
The Koreans' ambitious goal is 1 million sales in another two years. Is it possible? It doesn't seem likely, but if they falter it might be that relentless drive and ambition that trips them up. But right now exchange rates are working for them, especially against the Japanese.
(Excerpt) Read more at forbes.com ...
I can’t bring myself to buy a car with the initials for Killed In Action. Just sayin’.
Hyundai has really compressed that transformation. It's a good, solid car, especially for the price.
I had a co-worker with one, he really liked it.
The new big three US automakers will be Ford, Toyota and Hyundai. GM and Chrysler under government management are toast.
I had a yellow 74 Civic once.
It was in great shape.
Believe it or not i traded a CB radio and antenna for it.
My buddy had 2.
I got it to use as a winter car but after driving it once I parked it next to my garage for the next 4 years mever to be used again. (by me anyways)
Owned a Santa Fe for almost six years, a great car—especially for the price. My next car will also be a Santa Fe. 75,000 miles with no major problems!
1985 seemed to be a major turning point.
UAW means do not hire. If I had ever worked in a unionized shop I'd blank that out of my resume.
I remember when Hyundai first started selling in the US almost 25 years ago—remember the Excel? Those things were jokes. Terrible interior finish, ugly styling, and horrendous mechanical reliability. But they were cheap, and they sold well, until word got around about what pieces of crap they were!
Hyundai has really turned it around since then. The 10/100 warranty was obviously a shot at silencing the reputation they picked up with the original Excel, and it worked. I never hear anything bad about their cars anymore, as witnessed on this thread. They’re definitely worth looking at, and it’s ironic to see somebody beating the Japanese manufacturers at their own game of low cost and high quality, just like they did to Detroit 30 years ago.
}:-)4
Wow, it wasn't even worth $1k.
But I did drive the heck out of the '74. Think I eventually traded it in on a Z car.
ROTFLMAO! Even though I'm a Korea-phile, that is just too funny!
Even though the Korean carmakers don't have union problems in the USA, they do have union issues in the old country. The Chosun Ilbo, one of Korea's oldest papers wrote an editorial shortly before or after Obama took office warning Hyundai in particular that if they don't get a handle on their own union that they could repeat GM's history in another 30 years. I hope Hyundai took them seriously.
Tell me about it.
We’re having a “strike” ChangYeong right now.
Apparently, all it take to unionize in Korea is TWO EMPLOYEES.
That’s all.
Crazy.
We’ve got supervisors and managers running the place now.
Thank God for the economic “slowdown”.
I’d hate to see the warrenty claims in a few months ;)
The Koreans and Suzuki are the only auto makers selling in the US value. Toyota and Honda have priced themselves to oblivion, and most of the US “value” models are no real value.
GM finally puts out a reasonable small car, finally getting rid of the crap cavalier and then wants 16k for a base model because they claim its so fuel efficient people will pay 3-4k more than the competition for 35mpg? There is no wonder why GM went belly up.
Ford’s focus is long past due for a true update, sorry the sheet metal update can only stop gap, you need the true new model that’s over in Europe here, and you need to get that KA here too.
There is little doubt the Koreans are the value brands today, with Suzuki as well.
The first Japanese cars were crap... but they slowly kept improving and learning... Now they charge far too much of a premium for their brand names IMHO.
Hyundai’s plant in the US is in Montgomery, AL. Kia is building one in the southern US too.. can’t remember exactly where.
I believe that US law protects car buyers from strict service requirements.
The dealer/company cannot force you to have service at a specific place, unless you specifically sign a separate contract (like for the free BMW maintenance).
They’ve begun posting notices to this effect at the Jiffy Lubes, because of dealers’ unscrupulous practices.
Thanks, good to know, since I do a lot of work myself.
I remember the Excel painfully well. I bought a 1989 hatchback. The overall mechanical design wasn’t too bad, but the metallurgy was bad and the plastics were terrible. The resale value was zip.
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