Hyundai and Kia Can’t Keep Up With Huge Demand
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Hyundai and Kia Can’t Keep Up With Huge Demand
http://wot.motortrend.com/hyundai-an...nd-120673.html
It wasn’t too long ago that Hyundai and Kia were the butt of automotive jokes. Now, the Korean automakers are the ones laughing, and laughing all the way to the bank. Hyundai and Kia’s new models are in such high demand in the U.S. the companies can’t produce enough cars. Speaking to CNN Money, Hyundai CEO John Krafcik said that worldwide production of North American models was “more or less maxed out,” leaving dealers “quite upset that they can’t get cars.”
Thanks to the robust sales, Hyundai and Kia – which are owned by the same parent company – now roughly equal Honda’s market share in the U.S. Hyundai’s cars have been retailing with less rebates as well — $737 on average versus $2385 for the industry. And although dealers have been unhappy with the shortage of vehicles to sell, they have been pleased that Hyundai was able to begin leasing programs last year thanks to the brand’s rising residual rates.
There is currently no talk on whether or not Hyundai/Kia will build another factory in the states to help sate demand for their cars. Currently, Hyundai has one plant in Montgomery, Alabama where it produces Sonatas and Elantras; Kia has a plant in West Point, Georgia where it builds its Optima midsize sedan and Sorento crossover, as well as the Hyundai Santa Fe crossover that the Sorento shares its platform with. 600,000 vehicles annually can be built between the two plants.
So far this year, Hyundai has sold 440,863 vehicles and Kia has moved 331,796.

It wasn’t too long ago that Hyundai and Kia were the butt of automotive jokes. Now, the Korean automakers are the ones laughing, and laughing all the way to the bank. Hyundai and Kia’s new models are in such high demand in the U.S. the companies can’t produce enough cars. Speaking to CNN Money, Hyundai CEO John Krafcik said that worldwide production of North American models was “more or less maxed out,” leaving dealers “quite upset that they can’t get cars.”
Thanks to the robust sales, Hyundai and Kia – which are owned by the same parent company – now roughly equal Honda’s market share in the U.S. Hyundai’s cars have been retailing with less rebates as well — $737 on average versus $2385 for the industry. And although dealers have been unhappy with the shortage of vehicles to sell, they have been pleased that Hyundai was able to begin leasing programs last year thanks to the brand’s rising residual rates.
There is currently no talk on whether or not Hyundai/Kia will build another factory in the states to help sate demand for their cars. Currently, Hyundai has one plant in Montgomery, Alabama where it produces Sonatas and Elantras; Kia has a plant in West Point, Georgia where it builds its Optima midsize sedan and Sorento crossover, as well as the Hyundai Santa Fe crossover that the Sorento shares its platform with. 600,000 vehicles annually can be built between the two plants.
So far this year, Hyundai has sold 440,863 vehicles and Kia has moved 331,796.

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No, I think people are finally starting to use their brains.
Why buy Japanese when you can have Korean cars, which are just as good (if not better), for much less ...
Why buy Japanese when you can have Korean cars, which are just as good (if not better), for much less ...
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Make sure that all people who bought "Made in Mexico Ford Fusion" know that and that people who bought "Made in Alabama, USA Hyundai Sonata" made a huge mistake.
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Every Auto Manufacturer has a Direct Effect on the U.S. Economy. None are 100% But with this info a Greater Picture of Employment is shown. FORD is
#1 Btw. Huyndai and Kia are at the Very Bottom.
Certainly with the U.S. Employment rate it would be wise to consider buying from a company that supports the U.S. as much as possable. If you can't or won't buy Domestic than at Least you could support a Manufacturer that has Greater impact on the U.S. economy as a whole. Should you Choose to make this a factor.
I realize certain Domestic Cars are built in another Country and Certain Non Domestics are manufactured here. But it's the Jobs The Manufacturers support which is my concern. This is a world economy now but I would Rather support a 70% Made in the USA Product vs a 10% Item.
While some of the masses wait for the Government to blow the All Clear Sign for the economy to turn around I personally choose to make an effort to Support American Goods & Companies now. It's an Individual choice. The All clear won't happen until people realize we have to bring back & retain U.S. manufacturing.
I use every opportunity to educate those I run into about the value in buying Domestic. Many of the Parts I sell are not made in the U.S. But they do come from a company That Supports more U.S. Jobs than any other car manufacturer. I wish there were Domestic parts made but thats the way it is.
The Vote with the most impact is ultimately the one you make when you spend your hard earned Dollar. It certainly does not seem to work with our elected officials.
BTMO
KC
Every Auto Manufacturer has a Direct Effect on the U.S. Economy. None are 100% But with this info a Greater Picture of Employment is shown. FORD is
#1 Btw. Huyndai and Kia are at the Very Bottom.
Certainly with the U.S. Employment rate it would be wise to consider buying from a company that supports the U.S. as much as possable. If you can't or won't buy Domestic than at Least you could support a Manufacturer that has Greater impact on the U.S. economy as a whole. Should you Choose to make this a factor.
I realize certain Domestic Cars are built in another Country and Certain Non Domestics are manufactured here. But it's the Jobs The Manufacturers support which is my concern. This is a world economy now but I would Rather support a 70% Made in the USA Product vs a 10% Item.
While some of the masses wait for the Government to blow the All Clear Sign for the economy to turn around I personally choose to make an effort to Support American Goods & Companies now. It's an Individual choice. The All clear won't happen until people realize we have to bring back & retain U.S. manufacturing.
I use every opportunity to educate those I run into about the value in buying Domestic. Many of the Parts I sell are not made in the U.S. But they do come from a company That Supports more U.S. Jobs than any other car manufacturer. I wish there were Domestic parts made but thats the way it is.
The Vote with the most impact is ultimately the one you make when you spend your hard earned Dollar. It certainly does not seem to work with our elected officials.
BTMO
KC
Last edited by 05stangkc; Sep 26, 2011 at 05:00 PM.
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I don't even wanna go into details about whole Chrysler situation which had to be bought by "Fix It Again Tony" in order to survive. And they made it competitive again. Just take a look at interiors in Chrysler/Dodge/Jeep before and after Fiat took over, that will tell you the whole story.
umm am I missing something? Most of the world does buy things that are in no way from the USA. Other then a few super high end or classic shelbys asia buys asian cars and german cars.
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Imagine if the entire world thought the same way. Do you think GM and Ford could survive without foreign markets? Imagine if Asians stopped buying GM's and Ford's vehicles. Do you think Big 3 would still be in business? Most likely no since GM's biggest market is China. That's right, they sell more vehicles in China than the USA. And Ford's current line up in the USA, which everybody likes so much, came out from Europe. Fiesta, Focus, Fusion, Taurus, Explorer, Escape, Edge, Flex ... all are either developed mostly in Europe or by Ford's former Japanese partner, Mazda.
I don't even wanna go into details about whole Chrysler situation which had to be bought by "Fix It Again Tony" in order to survive. And they made it competitive again. Just take a look at interiors in Chrysler/Dodge/Jeep before and after Fiat took over, that will tell you the whole story.
I don't even wanna go into details about whole Chrysler situation which had to be bought by "Fix It Again Tony" in order to survive. And they made it competitive again. Just take a look at interiors in Chrysler/Dodge/Jeep before and after Fiat took over, that will tell you the whole story.
So How many cars of the Domestic Three do we sell in Japan? Any Dealerships There? They seem to be able to sell there cars here pretty easy. Fair is Fair.
I understand your position and reasoning and in this Great Country called the USA we are all still entitled to voice that. I acknowledge your point of view & agree we will have to disagree. What the rest of the members choose to believe is up to them.
In my view being Americans our Team is the USA. Just as some Football Fans Prefer one Team over another. I chose to support my Team being the USA.
After all this is THE MUSTANG SOURCE and we are all here to Support THE FORD MUSTANG which is Made in The USA and by FORD the Company that supports more US Auto Jobs than all the Rest! BOO RAH!
It's as simple as Next time CONSIDER A DOMESTIC. That's all I ask!
kc
Last edited by 05stangkc; Sep 26, 2011 at 05:30 PM.
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If fair is fair, then we might add few things. Because I don't think that the buyers are the problem - I think the Big 3 are not giving buyers what they want.
For one, Big 3 were so much behind Toyota, Honda and Nissan until recently that there was no point of trying to sell their vehicles to Japanese buyers. And there were other things too. For an example, here in Europe interior quality is one of the most important parts of the new car. How are you gonna convince any buyer outside the USA to spend $60,000 on a car that has the interior that looks like this?

Two, if you're gonna compete at the specific market you better learn what buyers at that market want. GM, for an example, tried selling Cadillac in Europe recently. They failed. Their only model, BLS, was based on much cheaper Saab 9-3. If that wasn't bad enough, BLS used Fiat's diesel engines. You don't put Fiat's engines in a $50,000 car.
Now Cadillac is ready to go back to the European market with CTS. However, they will offer only petrol engines, no diesel. This will kill them even before they start selling CTS in Europe. Majority of European buyers buy diesel cars because of the high gas prices. Another important thing - diesels must be 2.0L or smaller, due to much higher taxes for vehicles over 2.0L engine sizes. Cadillac's only engines will be 3.0L and 3.6L.

Third, which can also go under #2, what does the Big 3 have to offer to a Japanese buyers? The most economical US-Ford (not counting expensive Fusion hybrid) is Fiesta rated at 28 mpg city. I'm sorry, but that's not good enough. In the world outside the USA, where gas prices are $8-$9 gallon, 28 mpg is nothing special. In fact, it's considered a poor gas mileage.
Big 3 also do not have any kei cars, which are very popular in Japan. You're not gonna be successful if you try to sell big Dodge Chargers with thirsty 5.7L Hemi V8 to anyone outside the USA.
So if you wanna compete - you better learn what buyers want. Japanese and Koreans did that in the USA and that's why they're so successful.
For one, Big 3 were so much behind Toyota, Honda and Nissan until recently that there was no point of trying to sell their vehicles to Japanese buyers. And there were other things too. For an example, here in Europe interior quality is one of the most important parts of the new car. How are you gonna convince any buyer outside the USA to spend $60,000 on a car that has the interior that looks like this?

Two, if you're gonna compete at the specific market you better learn what buyers at that market want. GM, for an example, tried selling Cadillac in Europe recently. They failed. Their only model, BLS, was based on much cheaper Saab 9-3. If that wasn't bad enough, BLS used Fiat's diesel engines. You don't put Fiat's engines in a $50,000 car.
Now Cadillac is ready to go back to the European market with CTS. However, they will offer only petrol engines, no diesel. This will kill them even before they start selling CTS in Europe. Majority of European buyers buy diesel cars because of the high gas prices. Another important thing - diesels must be 2.0L or smaller, due to much higher taxes for vehicles over 2.0L engine sizes. Cadillac's only engines will be 3.0L and 3.6L.
Third, which can also go under #2, what does the Big 3 have to offer to a Japanese buyers? The most economical US-Ford (not counting expensive Fusion hybrid) is Fiesta rated at 28 mpg city. I'm sorry, but that's not good enough. In the world outside the USA, where gas prices are $8-$9 gallon, 28 mpg is nothing special. In fact, it's considered a poor gas mileage.
Big 3 also do not have any kei cars, which are very popular in Japan. You're not gonna be successful if you try to sell big Dodge Chargers with thirsty 5.7L Hemi V8 to anyone outside the USA.
So if you wanna compete - you better learn what buyers want. Japanese and Koreans did that in the USA and that's why they're so successful.
Last edited by Zastava_101; Sep 26, 2011 at 05:38 PM.
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https://mises.org/Community/forums/t/15524.aspx
http://www.dailymarkets.com/forex/20...lobal-economy/
Currency Manipulation Helps them compete too!
http://www.dailymarkets.com/forex/20...lobal-economy/
Currency Manipulation Helps them compete too!
Last edited by 05stangkc; Sep 26, 2011 at 05:58 PM.
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CEO of one of the largest and most successful auto manufacturers (Volkswagen's Martin Wintercorn) wonders how is Hyundai able to achieve something that neither BMW or Volkswagen can ...
http://www.autoblog.com/2011/09/26/w...-volkswagen-a/
http://www.autoblog.com/2011/09/26/w...-volkswagen-a/
https://mises.org/Community/forums/t/15524.aspx
http://www.dailymarkets.com/forex/20...lobal-economy/
Currency Manipulation Helps them compete too!
http://www.dailymarkets.com/forex/20...lobal-economy/
Currency Manipulation Helps them compete too!
Their always working things unfair.
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Its not like anyone buys Big 3s vehicles in Japan anyways.
Especially because, in order to qualify for CFC, you have to trade in a gas guzzler for the fuel efficient vehicle.
Especially because, in order to qualify for CFC, you have to trade in a gas guzzler for the fuel efficient vehicle.
Hyundai and Kia’s new models are in such high demand in the U.S. the companies can’t produce enough cars. Speaking to CNN Money, Hyundai CEO John Krafcik said that worldwide production of North American models was “more or less maxed out,” leaving dealers “quite upset that they can’t get cars.”
Oh nooooo. A quick cars.com search shows there's 57,000+ brand new Hyundai/Kia's for sale.
Catastrophe averted.
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Well in August Hyundai sold 58,505 vehicles and Kia added another 41,188. Combined, they had better sales than any other manufacturer other than Ford, Chevrolet and Toyota.
So those 57,000 ain't gonna last much longer at dealer lots.
Whether we wanna admit or not, Koreans are for real. Hyundai/Kia is world #4 largest automaker (they passed Ford last year) and they are gaining year after year. And I'm sure that in 10 years or so they're gonna be fightining Volkswagen and GM for the title of world's largest manufacturer.
And the fact that some people don't like them for whatever reason doesn't really change the fact that they're are stylish and offer the best fuel economy and most power - all for prices below the competition.
http://www.motortrend.com/roadtests/...an_comparison/
So those 57,000 ain't gonna last much longer at dealer lots.
Whether we wanna admit or not, Koreans are for real. Hyundai/Kia is world #4 largest automaker (they passed Ford last year) and they are gaining year after year. And I'm sure that in 10 years or so they're gonna be fightining Volkswagen and GM for the title of world's largest manufacturer.
And the fact that some people don't like them for whatever reason doesn't really change the fact that they're are stylish and offer the best fuel economy and most power - all for prices below the competition.
http://www.motortrend.com/roadtests/...an_comparison/
Last edited by Zastava_101; Sep 27, 2011 at 01:23 AM.



