Hyundai-Kia Automotive Group is redoubling its efforts to polish its brand image abroad with new premium models such as the Hyundai Genesis and Kia Mohave to grab a bigger slice of the pie in the global automobile market.
Hyundai Motor, in particular, has made every effort as the group’s parent company to develop high value-added vehicles to pull up its sales and net profits. The Genesis model represents the direction the company should follow to survive the global competition.
Developed under the project-name “BH,’’ the Genesis is a new rear-wheel drive (RWD), full-size luxury sedan, which debuted as a concept car at the 2007 New York International Auto Show and was unveiled at home last month.
Hyundai Motor, albeit unrivaled at home, has so far been recognized as a brand of relatively low-priced vehicles compared with its global rivals. But the automaker is now striving to put the Genesis sedan squarely with BMW, Mercedes-Benz and Lexus.
Hyundai Motor also plans to release an RWD sports coupe “BK,’’ based on the Genesis chassis, and unveil the top-class premium sedan “VI’’ in the latter half of 2008. “We plan to complete the premium lineup by the end of next year.’’
Kia Motors, an affiliate of Hyundai Motor and the second-largest carmaker in South Korea, also plans to release three new models including the Mohave, which will be sold under the United States with the name Borrego, and two facelift or upgraded models next year.
A large-sized sport utility vehicle (SUV), the Borrego is equipped with either a V6 or V8 gasoline engine. And it marks the first time that Kia Motors has installed a V8 engine in its vehicles, according to the company.
Higher Quality, Better Image
Hyundai Motor’s accumulated sales in the United States broke the 5 million mark last July, a feat achieved 20 years after it advanced into the world’s largest automobile market with its Excel in 1986.
However, the firm didn’t always have good times there. Sales plunged after 1989 due to a rapid decline in demand amid an economic slowdown plus oversupply triggered by Japanese carmakers and weakened price competitiveness due to the strong won.
Hyundai Motor completed a factory in Quebec, Canada, in 1989 with an annual production capacity of 100,000 for the North American market. But the “ill-timed’’ factory had to be shut down in 1993.
The automaker got another opportunity in 1998, when Chung Mong-koo took the rudder of Hyundai-Kia Automotive Group after the acquisition of Kia Motors in the wake of the financial crisis that hit many Asian countries including South Korea in late 1997.
With a strong leadership and firm determination, Chung geared up for what he thought should be the two main objectives for his group’s survival in the new century ? global management and quality improvement.
While trying to expand overseas production bases on the one hand, he introduced Six Sigma and a variety of other quality improvements such as total quality management and value engineering on the other.
Chung and his group’s endeavors have recently come to fruition. Hyundai Motor saw its ratings in the Initial Quality Study by J.D. Power, a noted U.S. market research institute, soaring from 34th in 2000 to 23rd in 2003 and third in 2006.
Motor Trend also praised the 2007 Veracruz over Japan’s luxury SUV Lexus RX350 recently and AutoPacific Inc. has put the Santa Fe on top of the mid-size SUV category six times in the past seven years in its annual Vehicle Satisfaction Awards.
Hyundai-Kia Automotive Group, with the improved brand image, now aims to sell 1.65 million cars in the U.S. ? 1 million cars for Hyundai Motor and 650,000 cars for Kia Motors ? from 2010 to grab an annual market share of 8.6 percent there.
In 2008, Hyundai Motor plans to raise the number of its American dealers by 65 to a total of 820 to fortify its competitive edge. Kia Motors also plans to replace some 10 percent of its current dealers with larger, stronger ones, according to the group. [Source: Koreatimes]
Loading ...
December 27th, 2007 at 11:40 pm
3 new vehicles? Borrego, Soul, and Mojave? Maybe the dealership was right in saying that Kia will debut a pickup, or maybe a commercial vehicle for the American market. The two that will get the makeovers is Spectra and Rio for sure. Well, at least Spectra for sure. The Sportage might get redone. I guess we’ll have to wait and see.
December 27th, 2007 at 11:51 pm
First of the three is Borrego, second is the Soul crossover and third could be either Sportage, Rio or new Spectra. But I belive Spectra will debut in 09…
December 28th, 2007 at 7:32 pm
No, because it says 3 new and 2 redesigned! The Sportage and Rio will get the redesign. There is still one vehicle that we will get that Kia is keeping a secret. A Kia official I e-mailed confirmed that we will get 3 NEW and 2 REDESIGNED. He also confirmed that Borrego and Soul are coming for sure, and the 3rd vehicle is Kia’s biggest secret to date. I really, really hope it’s a pick-up!
December 28th, 2007 at 7:46 pm
I would be going sports car. Not pickup if I were Kia. Truck sales are at all time lows on the US. It would be a stupid move for Kia. The latest report for GM, Ford, Nissan state that they have double the amount of trucks than buyers for them. Which is really bad. You want to have a two month supply for a vehicle. Not a 5 month supply like they have now.
December 28th, 2007 at 11:24 pm
Now the 3rd generation Spectra looks ready to be shown next year. The Optima is supposed to get the minor facelift and I know about the 3rd gen Rio but I didn’t expect this model to arrive so fast. It is only 2 years old (well it will be 2 next year).
Kia should look at Suzuki and see how bad their Nissan titan sell before giving their pick-up truck the green light.
December 29th, 2007 at 12:46 am
Hi everyone.
here’s something about Hyundai from India (Goa). When I first arrived there, I saw heart-breakingly few hyundai i10 hatches. BUt soon I was seeing at least one each day. looks so cool. the rear lights were quiet big. OK. have to read the other posts thats I missed.
December 29th, 2007 at 4:47 pm
I’m with you Colby! What Kia needs right now is an affordable and attractive sports coupe and perhaps it’s cabrio version. The Kee mada a lot of buzz already amd impressed people who have seen it. So it would be the perfect image car for Kia.
Second, I hope to see a Spectra replacement as soon as possible. Kia needs a true competitor to Civics and new Saturn Ion. Current Spectra is a great value car but lacks refinement and sporty feel that competitors offer.
I wouldn’t go for a pick up truck! It’s a though market and sales numbers are going down due to the rising fuel prices and changing demands of US consumers right now.
If I was at Kia, I’d push for diesel engines to be offered in their SUVs and sedans! The perfect combination for US market would be the next gen Spectra with a 2.0clean diesel engine.
Such vehicle would have low fuel consumption (lower than hybrids) and not much of competition from other automakers.
Although the cost of a new car would most probably be slightly higher compared to gasoline powered Spectra, it would still be lower than the price of hybrid car. Plus, it would be lighter than a hybrid, which also means better performances.
December 29th, 2007 at 7:32 pm
Kis is trying to get tier2bin5 diesels as quick as possible, but it just isn’t happening. Kia is really lagging behind Japanese automakers in hybrids. Kia should do more with Ethanol too. I was watching the Science Channel the other day, and saw how it is easier to make Ethanol out of food scraps than actual corn. If we did start using more ethanol made with waste scraps we could easily reduce pollution, oil consumption, and help keep landfills less full.
December 29th, 2007 at 7:34 pm
Excuse me, in the first word, I meant to type “Kia” . Really easy mistake!
January 3rd, 2008 at 1:14 am
Did anyone read the new blog on Kia-buzz?? They state that with the addition of the borrego they are going to unviel another new vehicle this year but didn’t state what it was going to be. They already announced the Soul is going to be out in October and the Borrego this Spring. So thier is going to be 3 “new” designs for 08. I am excited.