Hyundai, Kia muscle into Europe, US

Korean automaker Hyundai and sister Kia are muscling their way into markets in Europe and the United States.

Together, Hyundai and Kia are now the fifth-largest automaker in the world, after global sales grew 15 per cent to 6.6 million vehicles in 2011.

They hope to pass the seven million mark this year and the United States and Europe - both highly competitive, mature markets - are key to that strategy.

In Europe, Hyundai's sales grew 12 per cent last year, while Kia's sales jumped 11 per cent to a combined 692,500 vehicles.

They did even better in the United States, with Hyundai up 20 per cent and Kia up 36 per cent, to a combined 1.1 million vehicles, a new record.

'The American market is so important in terms of psychology for the group,' John Kfracik, president of Hyundai Motor America, told AFP on the sidelines of the Detroit auto show.

Hyundai's initial entry into the United States in 1986 was marred by quality problems, which tarnished the brand's reputation long after the issues were corrected.

The introduction of the industry's first 10-year warranty - compared with just three years at quality leaders like Toyota and Honda - reassured the nation's quality and value-conscious consumers.

Timed at the beginning of a major expansion of Hyundai and Kia's product offerings following the establishment of their first US assembly plants, the warranties helped Korean auto sales explode.

Clever marketing helped Hyundai capture even more market share amidst the deepest economic downtown in decades, when it offered to buy back its cars if new owners lost their jobs.

'We've been known as a value brand. That has been a position that has suited the company's strategy very well,' Krafcik told the Automotive News World Congress on Tuesday.

'We're in the midst of a move to becoming a valuable brand.'

Read More: http://www.skynews.com.au/businessnews/article.aspx?id=707531&vId=

Hyundai Owners Are Most Loyal, J.D. Power Study Says

Hyundai is on a roll. After reporting strong sales in 2011 and winning the North American Car of the Year Award for its Elantra sedan, the Korean automaker got more good news from J.D. Power and Associates. In the results of J.D. Power's Customer Retention Study, Hyundai came out on top in terms of brand loyalty.


The study, which J.D. Power skipped in 2011, charts customer-loyalty rates by vehicle brand, looking at who remains loyal and to which automaker. For 2012, the industry brand loyalty average is 49%, with Hyundai riding the top of the list at 64%, according to the study.

Hyundai's success is likely driven by the brand's recent overhaul of several of its vehicles, its value pricing strategy and its Assurance buyback program.

Tied for second on the list are Ford and Honda, each with a 60% customer retention rate. Winning the most-improved title is the Jeep brand; its retention rate jumped from 34% in 2010 to 51% in 2012.

Read More: http://blogs.cars.com/kickingtires/2012/01/hyundai-owners-are-most-loyal-jd-power-study-says.html

Hyundai, Kia export over 2 mln vehicles in 2011

SEOUL, Jan. 17 (Yonhap) -- Exports by Hyundai Motor Co. and its affiliate Kia Motors Corp. -- South Korea's two major automakers -- exceeded the 2 million unit mark for the first time last year on the back of brisk overseas demand, industry data showed Tuesday.

Hyundai Motor, the country's leading automaker, exported 1,193,343 vehicles and its smaller affiliate Kia Motors 1,089,302 units to record combined overseas sales of 2,282,645 vehicles in 2011, up from 1,989,680 exported a year earlier, according to the data.

The two automakers' exports almost doubled over 10 years to surpass the landmark 2 million vehicles, the data showed. Combined, they exported 1,338,642 vehicles in 2001.

Of every 100 vehicles Hyundai and Kia produced in South Korea last year, 66 were exported, compared with 53.8 units per 100 in 2011.

Their global sales, including those by the marques' overseas operations, reached 5,414,735 vehicles last year.

"Improved competitiveness and brand image of our cars and timely releases of new vehicles drove the export increase," said a company official.

Read More: http://english.yonhapnews.co.kr/business/2012/01/17/82/0501000000AEN20120117001400320F.HTML

Chung foundation to support 13,000 college students

The Chung Mong-koo Foundation will provide 13,000 college students from underprivileged households with financial support, Hyundai Motor said Tuesday.

The foundation, set up by Hyundai Motor chairman Chung, plans to issue tuition fee loans with low or zero percent interest rates.

“Over the next two years, about 13,000 college students will enjoy the educational support. Lending rates range between 0 and 3 percent,” the automaker said in a statement.

About 5,000 students could be beneficiaries of the loans with no interest, the company added.

The Chung foundation, formerly Haevichi Foundation, will also support students struggling with high interest on loans from the secondary banking sector or private moneylenders.

“By acquiring their former debts with high interest rates, the foundation is seeking to prevent some students from becoming credit delinquents,” the company said.

The foundation has signed a contract with Kookmin Bank in a bid to convert the high-rate loans in the secondary banking sector to low-rate loans offered by the commercial bank.

Chung said he would like to help needy students so that they do not lose hope for the future and focus on studying.

Aside from providing low interest rate loans for college tuition fees, the foundation has mapped out a program aimed at fostering talented students in science via intensive classes for middle and high school students.

The program also involves comprehensive support for elementary, middle, high school students residing in farming and fishing villages across the country.

He promised in 2006 to donate 1 trillion won ($872,000) to society and gave 923,077 shares worth 60 billion won to the foundation in November 2007.

Read More: http://www.koreaherald.com/national/Detail.jsp?newsMLId=20120117000979

Hyundai to introduce i-oniq concept in Geneva

Hyundai Motor Co. will preview the next phase of its vehicle styling with a new concept car scheduled to debut at the 2012 Geneva Motor Show in March.

Hyundai released a teaser sketch today of the i-oniq concept car that will be introduced in Geneva and said it hints at the future direction of the brand's "fluidic sculpture" styling.
The sketch shows the silhouette of a long hood and a fastback-style passenger cabin.

The car was designed at Hyundai's European research and development center in Rüsselsheim, Germany.

"Two strong arched curves define the silhouette of i-oniq, creating a playful contrast between the sharp character lines and soft but muscular features," Thomas Bürkle, Hyundai's European design chief, describing the i-oniq, said in a statement.

A spokesman from Hyundai Motor America declined to elaborate on the vehicle.

Hyundai has applied the "fluidic sculpture" styling to nearly its entire vehicle lineup. The swoopy lines and dramatic surface treatments of the corporate look have helped Hyundai shed its legacy of hum-drum styling and boost sales of vehicles like the Sonata and Elantra.

Read more: http://www.autonews.com/article/20111215/OEM04/111219900#ixzz1h710yIuX

Hyundai Ranks High in KBB’s most-researched vehicles of 2011

Chances are you've visited KBB.com to do some research if you're in the market for a new vehicle, which is why the site's list of this year's most researched new vehicles and brands is probably a good representation of what the public at large is really interested in.

KBB calls it "share of market interest," which is defined as the percent of new car shopper activity for a particular brand or model. This year, Toyota captured the largest share of market interest among brands with 14.2 percent, followed by Ford (13.5 percent), Honda (12.8 percent), Chevrolet (11.5 percent) and Hyundai (7.5 percent).

As for individual models, the list of 20 vehicles with the highest share of market interest is dominated by the familiar players, including the Honda Civic, Accord and CR-V; Toyota Camry and Ford F-150, which make up the top five (though not in that order).

KBB points out two interesting things about this year's list. The first is the excellent showing by Hyundai both in brand ranking and individual models with the highest share of market interest. The Korean automaker was fifth in the brand rankings, pushing Nissan out of the top five, and the Sonata and Elantra ranked sixth and seventh among individual models, the latter jumping 29 spots from last year's list. The site credits Hyundai's roll out of new models, as well as hard times for both Toyota and Honda, for its capturing of consumers' interest this year.

The other thing to note is the absence of luxury vehicles, which suggests these tight economic times have consumers researching more practical purchases than a BMW, Mercedes-Benz or Audi, or at least that those who can afford such vehicles aren't researching them on KBB.com.

Follow the jump for KBB's official press release that includes the full list of 20 vehicles with the highest share of market interest for 2011.

Read More: http://www.autoblog.com/2011/12/16/kbb-names-its-most-researched-vehicles-of-2011/

Hyundai Emulates VW Market Share Gaining Super Bowl Ads: Cars

Hyundai Motor Co. (005380) is taking a page from Volkswagen AG (VOW)’s Super Bowl playbook.
The South Korean automaker wants to “turn the needle a little bit in the direction of more entertainment,” John Krafcik, chief executive officer of Hyundai’s U.S. unit, told reporters last month while outlining plans for NBC’s Feb. 5 broadcast of the championship game of the National Football League. “We’d like a little bit more memorability.”

Last year’s winners saw big -- and lasting -- market-share gains after putting up spots in last season’s final game. VW Passat interest surged 70 percent on Edmunds.com during the week after it aired a spot of a child playing Darth Vader compared with the prior four weeks, according to Edmunds.com, a Santa Monica, California-based website that tracks automotive sales.

Chrysler also benefited from its Super Bowl play. Car- shoppers’ consideration of the brand on Edmunds soared 87 percent in the week following its two-minute ad for the 200 sedan that featured rapper Eminem and extolled Detroit’s toughness as a possible source of luxury.

“It does raise the bar because the other car companies look at what happened with the 200 and they figure ‘We can do that too,’” said Vice Chairman Jeremy Anwyl of Edmunds, which also helps shoppers compare vehicles. “It’s not that easy.”

Boosting Sales

The successes of VW and Chrysler, which both gained U.S. market share this year, raises expectations, while the growing industry means more is at stake, said Jesse Toprak, an industry analyst with TrueCar.com, another site that monitors auto sales. Chrysler Group added 1.3 points of share so far this year, the most in the industry, to 10.7 percent, according to researcher Autodata Corp., while VW rose to 3.5 percent from 3.1 percent.

“We expect 2012 to be another year of recovery, reaching to nearly 14 million car sales,” he said. “There is more sales potential for automakers to grab during the next Super Bowl than during the past three Super Bowls.”

Light-vehicle sales in the U.S. fell to 10.4 million in 2009 after averaging 16.8 million from 2000 to 2007, according to researcher Autodata Corp.

Volkswagen’s ad for the new Passat showed a pint-sized version of the Star Wars villain trying to control household objects with his mind. His dad eventually starts the car with a key fob, letting the child believe he has special powers.

That spot and another for the new Beetle were “pretty radical” departures for the Wolfsburg, Germany-based automaker, said Jonathan Browning, head of VW’s U.S. operations.

“It served the purpose of getting Volkswagen back in a discussion and dialogue that it wasn’t part of at that point in time,” Browning said in an interview.

Read More: http://www.bloomberg.com/news/2011-12-14/hyundai-quest-for-memorability-means-emulating-vw-s-super-bowl-ads-cars.html

2011 ALL-STAR: CEO, ASIA

CHUNG MONG-KOO, Chairman, Hyundai Motor Group

Through sheer force of will, Chung, 73, has transformed Hyundai and Kia from scoffed-at also-ran brands into global powerhouses that have rivals -- both Japanese and American -- on the ropes. What's more, Chung did it through painstaking attention to quality, technology and design, not by simply chasing raw volume.

Through sheer force of will, Chung, 73, has transformed Hyundai and Kia from scoffed-at also-ran brands into global powerhouses that have rivals -- both Japanese and American -- on the ropes. What's more, Chung did it through painstaking attention to quality, technology and design, not by simply chasing raw volume. The Hyundai Equus has pushed the brand into luxury sedan territory, while top quality marks for mass-market nameplates such as the Hyundai Sonata awarded it with top-tier customer loyalty.


2011 ALL-STAR: U.S. EXECUTIVE, ASIAN AUTOMAKER
AHN BYUNG-MO, CEO, Kia Motors America

Back in 2008, Kia dealers were seething over sliding sales and bloated inventories, and when Ahn was named head of both Kia Motors America and Kia Motors Manufacturing Georgia, it was the seventh CEO change in less than a decade. But things have improved dramatically.

Back in 2008, Kia dealers were seething over sliding sales and bloated inventories, and when Ahn was named head of both Kia Motors America and Kia Motors Manufacturing Georgia, it was the seventh CEO change in less than a decade. But things have improved dramatically while Ahn, 61, has run the company's sales and marketing and manufacturing arms in this country-- the first executive to hold both responsibilities at Kia. On the marketing side, he has allowed sales boss Tom Loveless and marketing chief Michael Sprague to strut their stuff. Market share climbed from 2.1 percent in 2008 to 3.8 percent through the first 10 months of this year. Sales are up 35 percent so far in 2011, and the brand has created some funky, attention-getting ads, such as those hip-hop hamsters spots.

2011 ALL-STAR: PUBLIC RELATIONS
CHRIS HOSFORD, Executive director of corporate communications, Hyundai Motor America

Hosford, 64, has used a media strategy that blends promoting strengths while taking calculated risks that are deftly crafted. For example, Hyundai broke industry tradition last year when it began voluntarily reporting monthly fleet sales.

Hosford, 64, has used a media strategy that blends promoting strengths while taking calculated risks that are deftly crafted. For example, Hyundai broke industry tradition last year when it began voluntarily reporting monthly fleet sales. The company also reports its sales-weighted corporate average fuel economy scores every month. Hosford also lets his team have a little fun with Hyundai's competitors. The brand's "Save the Asterisk" talking point ribbed General Motors and Ford Motor Co. for selling only 40 mpg compact cars with low-volume, high fuel economy trim packages that require asterisks in advertising. Hyundai's Elantra is rated at 40 mpg on the highway, regardless of equipment -- hence no asterisks.

PETER SCHREYER, Chief design officer, Kia Motors Corp.

Schreyer, 58, has swiftly transformed Kia from a brand devoid of style into one that's becoming synonymous with high design for the masses. Vehicles designed under his watch -- the Sportage, Optima and new Rio -- have racked up design awards.

Perhaps more significantly, Schreyer and his team have penned designs that make it possible for a customer to buy a car for less than $20,000 that will really turns heads. And judging by the Kia GT concept car revealed at the Frankfurt auto show, Kia's design looks bright with Schreyer at the helm.

Read More: http://www.autonews.com/section/allstars

Hyundai's U.S. chief says rapid sales growth poses challenges

Hyundai Motor America CEO John Krafcik said that with the automaker on track to sell 100,000 more vehicles this year than in 2010, it has to learn to sell from a leaner inventory and fine-tune its factory output.


As chief executive of Hyundai Motor America, John Krafcik oversees the sales and marketing arm of one of the fastest-growing auto brands in America.

Led by torrid sales of its Elantra compact sedan, Hyundai has sold almost 550,000 vehicles this year, more than it moved in all of 2011 and a sales record for the South Korean automaker. Sales have risen almost 21% through the first 10 months of this year, double the rate of the entire U.S. auto sales market.

Read More: http://articles.latimes.com/2011/nov/24/business/la-fi-auto-show-hyundai-qa-20111124

HYUNDAI MOTOR AMERICA BREAKS ALL-TIME NOVEMBER SALES RECORD

• Hyundai Elantra, recent recipient of ALG’s award for the highest residual value in its class for the second year in a row, nearly doubles its sales
• Sonata exceeds 200,000 annual U.S. sales for the first time ever

COSTA MESA, Calif., Dec. 1, 2011 – Hyundai Motor America today announced sales of 49,610 vehicles in November, a 22 percent total sales increase and 24 percent retail sales increase compared with the same record-setting period a year ago.

“The Thanksgiving Holiday weekend, including ‘Black Friday,’ proved to be a very strong selling period and helped us break our all-time November sales record,” said Dave Zuchowski, Hyundai Motor America’s executive vice president of national sales. “With vehicle availability at the highest levels for the year, and with positive demand signals and improving consumer confidence, Hyundai is positioned for a very strong December finish to this record-breaking year.”

Year to date, Hyundai sales are up 21 percent versus 2010 in total, with sales to retail customers up 30 percent. Sales to fleet accounts represent 11 percent of the total sales year-to-date and 10 percent for the month of November. Thirty-six percent of Hyundai vehicles sold in November achieved 40 MPG fuel economy ratings.

The award-winning Hyundai Accent and Elantra continue to deliver a strong one-two punch in the sub-compact and compact car segments with sales increases of 16 percent and 44 percent, respectively, over the same period last year. Tucson and Veracruz, part of Hyundai’s crossover line-up, registered sales increases of 35 and 36 percent, respectively.

“Improving consumer demand and increased product availability at Hyundai dealers nationwide drive a positive December outlook for us,” said John Krafcik, Hyundai Motor America’s president and CEO. “While our 35 days-supply level today is low by most standards, it’s the best we’ve seen at the start of a month for some time. Accent, Elantra and Veloster remain in short supply, but healthy dealer stocks on all other Hyundai models should allow consumers a great opportunity to find just the car they’re looking for in December.”

CARLINE	NOV/2011	NOV/2010	CY/2011	CY/2010
ACCENT	4,682	4,052	50,285	49,191
SONATA	15,668	14,031	208,621	180,659
ELANTRA	12,414	8,631	173,336	119,150
SANTA FE	6,129	6,967	69,309	71,396
AZERA	58	248	1,506	2,889
TUCSON	4,101	3,042	42,774	35,553
VELOSTER	2,538	0	7,096	0
VERACRUZ	1,018	747	8,603	7,889
GENESIS	2,702	3,005	30,528	26,699
EQUUS	300	0	2,868	0
TOTAL	49,610	40,723	594,926	493,426

SALES WEIGHTED FUEL ECONOMY

	November CAFE (mpg)		2011 CYTD CAFE	November Window Label Combined MPG	2011 CYTD Window Label Combined MPG
Car	37.5		36.9	28.3	27.8
Truck	28.7		28.7	21.9	21.9
Hyundai Brand	36.4		36.1	27.5	27.2

	November	2011 CYTD
40-MPG Sales	17,889	195,212
Mix of Total Sales	36%	33 %

Hyundai achieved a corporate average fuel economy level of 36.4 MPG (27.5 MPG label value) in November, and 36.1 MPG (27.2 MPG label value) year-to-date, while selling 17,889 vehicles (Elantra sedan, Sonata Hybrid, Accent and Veloster) with 40 MPG window label highway fuel economy ratings. Year-to-date, Hyundai has sold 195,212 40 MPG vehicles.

IntelliChoice Announces Certified Pre-Owned Program Winners for 2012

Las Vegas (November 15, 2011) — IntelliChoice, the leading provider of automotive cost of ownership and value analysis and part of the Motor Trend Automotive Group, announced today the winners of its 13th annual ranking of manufacturer Certified Pre-Owned (CPO) programs, at the Certified Pre-Owned Forum and National Remarketing Conference in Las Vegas. For the fifth straight year, Volvo earned the top ranking among Premium manufacturers, while Hyundai was ranked highest among Popular vehicle brands.

Each year, IntelliChoice issues the industry’s only independent report card comparing Certified Pre-Owned programs offered to consumers through franchise dealerships. Certified Pre-Owned Vehicles (CPOs) are cars, trucks and sport utility vehicles that have come off lease or have been resold to dealers, and have been thoroughly inspected prior to sale. Car manufacturers have traditionally refined and augmented their programs based on the criteria employed by IntelliChoice in its benchmarking analysis, in an effort to compete more effectively in the marketplace for certified used cars.

“Since 2008, Hyundai had placed third overall in the Popular category, but was finally able to break into the top spot overtaking the two previous winners, MINI and Volkswagen,” said Eric Anderson, senior analyst at IntelliChoice. “While Volvo was able to retain its top ranking in the Premium category, Cadillac and Porsche are not far behind.”

Tyler Schulze, vice president and general manager of IntelliChoice, added, “The Certified Pre-Owned segment of the market continues to be very important to manufacturers and dealers alike, particularly due to the recent contraction in used-vehicle inventory levels. The ability for dealers to certify their best used cars and trucks under a compelling program sponsored by the manufacturer is a clear win for both the consumer and the dealer. We continue to see marginal year-over-year improvements in CPO program features across all makes, indicating that consumers can benefit from the ever-increasing competition in this market segment.”

Read More: http://awards.intellichoice.com/awards/cpo/cpo-press-2012/