By on January 31, 2010

Hyundai’s fourth quarter profit quadrupled over last year’s fourth quarter results, reports Bloomberg, as net income hit $822m, up from $210m in the same period last year. Operating profit rose 44 percent to $722m. This comes despite an increase in the value of the Won, which has reduced profit on Hyundais exports, which make up half the firm’s revenue. And unlike other automotive firms reaping surprise year-end profits (like Ford), Hyundai’s gains come from increased sales rather than cost-cutting. Hyundai’s overall sales rose 14 percent to 3.2 million units last year, driven by growth in the US and Indian markets. Hyundai finished 2009 with just over five percent of the world market. Hyundai expects sales to rise 11 percent in 2010, and the firm is looking to take advantage of Toyota’s weakness by offering conquest incentives like those now offered by GM, Ford and Chrysler.

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33 Comments on “Hyundai Quadruples Fourth Quarter Profit...”


  • avatar
    lahru

    Good for them. Just like Ford, Ill bet there has been some tightening of their belts at Hyundai. Last I checked both companies have increased market share in 2009 and the only way I know to do that is to increase sales.

  • avatar
    Gardiner Westbound

    One look at the 2011 Hyundai Sonata and everything Toyhondissan is suddenly old.

  • avatar
    mpresley

    VW cc (or is it CLS?) mated to a Toyota-esque grill. They’ll probably sell more in a month than the Germans in a year. I’d not be surprised if they outsell Toyota, one of these days. Not my cup of kimchi, but the brand is on the upswing no doubt.

    • 0 avatar
      Jack99

      I don’t think they’ll outsell Toyota. My predictions could be wrong, but I just foresee Hyundai becoming a major player alongside the other brands. As the world population grows and as incomes rise in India and China, it’ll be nice to see other brands coming into creation. In this day and age of vanishing poverty in Brazil, India, and China, there’s no such thing as too many competitors in the auto market. Just too many sticking pedals.

  • avatar
    threeer

    I hope it’s more engaging to drive than the 2008 Sonata I’ve got as rental right now…talk about numb…but you can’t deny Hyundai’s move up in the automotive world.

  • avatar
    dwford

    Damn you 2011 Sonata, damn you!!!! Our 75 2010 Sonatas are dead inventory, even with $2500 on the hood. We have only sold 3 2010s this month, even at all in prices.

  • avatar

    this business isn’t so difficult, if you know what you’re doing that is.

  • avatar
    210delray

    Bad pun alert:

    GM, Ford, and Hyundai are doling out rebates to disgruntled Toyota owners.

    DOT secretary LaHood tried to take credit for forcing Toyota to recall the cars and shut down production lines.

    So can we call these rebates “cash on LaHood?”

  • avatar
    mikey

    Dear ToMoCo
    Your walking away and thier talking behind you They will never forget you till somebody new comes along. Where ya been lately? There’s a new kid in town. Everybody loves him…..He’s holding ground…..and your still around.

    Apologies to David Souther/Don Henley/Glenn Frey

  • avatar
    Steve Biro

    “threeer
    January 31st, 2010 at 4:52 pm
    I hope it’s more engaging to drive than the 2008 Sonata I’ve got as rental right now…talk about numb…but you can’t deny Hyundai’s move up in the automotive world.”

    I won’t argue the numb part… but I had a 2010 Sonata as a loaner while my wife’s Santa Fe was being serviced last month. I was impressed enough with the general competency of the Sonata (a base model with no options). But when we were caught in a blizzard that had most other cars struggling, the Sonata seemed unfazed. I can see why non-enthusiasts have embraced this car.

    The 2011 Sonata seems interesting from styling and technical standpoints. I just hope there’s a model that provides some driving satisfaction.

    • 0 avatar
      shaker

      The “SE” trim has upgraded tires , wheels and suspension components with a dual exhaust that nets a few extra ponies (200HP) from the 2.4. I like where Hyundai is headed.

    • 0 avatar
      Freddie

      Sonata gets a bad rap on “numb” steering and handling. It just needs some decent tires. I put BFG g-Force Sport tires on my ’06 Sonata. Made a HUGE difference. The highlight of my commute home everyday is a tight 180 freeway on-ramp. Feels great and I can barely get the tires to squeal no matter how hard I push it. Last year I test drove an 09 Sonata SE with those crappy Kumho tires – now THAT was numb. And at the LA Auto Show I was disappointed to see Kumhos on the 2011 Sonata. My 06 originally came with Michelin Pilots – not as good as the BFGs but better than the Kumhos.

  • avatar
    Littlecarrot

    Sorry to disappoint all you Sonata fan-boys out there, but a Hyundai is not a Toyota or Honda. A five year old Hyundai is as reliable as a five year old Dodge. Engines implode.

    • 0 avatar
      don1967

      1998 called. They’re wondering what time you’ll be home.

    • 0 avatar
      rockit

      don1967

      He has a point, long term reliability is still behind competitors. Go check Consumer Reports or True Delta.

    • 0 avatar
      gslippy

      Engines implode? Usually engines explode, but whatever.

      I recently bought a 2001 Elantra with 138k miles; it now has 144k. I added some repairs, and it’s a nice-driving car.

      My 98 Dodge Caravan also has 144k on its 3.8L.

      My 85 Chrysler LeBaron GTS 2.2L went 206k miles and 14 years before I fell behind on the rust.

      So my limited data says I’ll stick with Hyundai, and (some) old Dodges.

      And I really want a 2011 Sonata.

    • 0 avatar
      don1967

      @Rockit,

      http://www.consumerreports.org/cro/cars/new-cars/news/2007/04/top-picks-for-2007-4-07/overview/0704_top-picks-2007.htm

      2 vehicles out of 10… best showing after Toyota. And before you say it, predicted reliability based on past models IS a consideration.

      Regarding True Delta, I will let MK respond to the words you have put in his mouth if he chooses.

  • avatar
    don1967

    The financial crisis couldn’t have come at a better time for Hyundai. It made frugality fashionable, which was the final push for thousands of car buyers who had taken notice of the brand and just needed permission. And if their first Hyundai is as good as mine, they will be solidly converted for years to come.

    This is the tipping point which Japan Inc. has been fearing for years. Hyundai has become the new Toyota.

  • avatar
    Mr Carpenter

    Engines implode at 5 years??!! Sorry, but I think that’s disinformation. My wife is on Sonata number 3 and we have a total of 125.000 miles in these cars with no engine problems, haven’t heard any of the many other Hyundai owners at my large employer complain (and the know I’m not only the resident car guy but that my Mrs has a Hyundai since we carpool).

    In fact, au contraire – I read an interesting article in Automotive news in about 2005 about the all new 4 cylinder 2.4 engines Hyundai now have made the backbone of their US auto lineups and that engine was designed to exceed 250,000 miles by design.

    Now ask me how long a Neon motor last and I’ll tell you from sad experience “under 50,000 miles”. Ka-boom head gasket. 3 times.

    • 0 avatar
      rockit

      Hyundai’s long term quality is still below rivals. Go check Consumer Reports and True Delta. Yes I believe your over exaggerating. (125,000 miles over 3 cars is nothing to be bragging)

      “In fact, au contraire – I read an interesting article in Automotive news in about 2005 about the all new 4 cylinder 2.4 engines Hyundai now have made the backbone of their US auto lineups and that engine was designed to exceed 250,000 miles by design.”

      I don’t believe that for a minute. I never heard of that, if its actually true post the link.

    • 0 avatar
      Jack99

      Actually rockit, I’ve read the 3-year reliability reports on Hyundais. Hyundai owners surveyed over a period of 3 years reported few if any problems. The scores that the cars received over the years hovered right around the industry average or occasionally exceeded it.

      I’m not sure about True Delta, I’ve never actually used it. If I have time later tonight, I’ll look up reports there.

    • 0 avatar
      don1967

      @Rockit,

      Perhaps it is you who should do some research and post some links. Your opinions are unsupported by any personal ownership experience or specific research citations. Show us the money.

  • avatar
    drifter

    2011 is nothing more than a Camry with gas pedals that do not get stuck.

  • avatar
    marjanmm

    There were several commentators on this blog saying fiat 500 and Alfa MiTo are ugly. Not one said this bloated, misshapen, swollen nosed contraption is ugly.
    There, I said it, someone had to.

  • avatar
    Otto Krump

    Is there any reason to buy a Corolla, Yaris or Camry nowadays over a Hyundai other than brand loyalty based on cars built 10- 20 years ago?
    Hyundai will take over the appliance car market in the next few years if they keep their prices where they are now

    • 0 avatar
      Cammy Corrigan

      Yes, there still is reason to buy a Toyota or Honda. Hyundai, whilst having good quality and reliability, still needs some more long term results before they’re with the big boys of reliability. Ford, have made tremendous leaps and bounds in the quality game, but even they need a few years of results before we can fully put them in the class of Toyota and Honda.

      Also, I can’t speak for North America, but in Europe, Hyundais and Kias depreciate quickly, very quickly. a friend of mine had a 2004 Hyundai Coupe which he bought for £16K. After 3 years, he was struggling to sell it for £5K. The problem with value cars is that when it comes to selling them on, they need to have “value pricing” on the used car market in order to be attractive for the next buyer. Why pay the same price for a Hyundai on the used car market, when you can buy a Toyota or Honda, for the same price? Ford suffers from a similar problem, as well. They’re bargains on the used car market, but someone has to buy it new in order to take that hit in price.

  • avatar
    Mr Carpenter

    Cammy, you are right – for the UK. Here in the states, newer Hyundais don’t depreciate any faster than Big-3 non-discontinued makes, which still make up a large portion of the market (at least, away from the east and west coasts, anyway). Kias do depreciate faster than Hyundais, but even that is improving, along with their quality (which is lagging behind Hyundai but is catching up somewhat as time goes by). Older Hyundais and Kias to depreciate more than average. This is, as I say, improving – along with the quality of the cars (can’t be a coincidence).

    rockit, I can’t “post” the link to the story I read since it was not online, but was a written article in Automotive News, though I do possess a copy of it at home – somewhere. I guess you’ll either have to take my word for it, or not.

    Since I don’t work for Hyundai (or any other car company) I’d like to know why the suspicion as to my comment? I suppose you don’t know me personally, and that’s it. But – there is no reason for me to lie.

    The story was convincing enough for us to obtain two new Sonatas and we’ve had virtually zero problems over 3 years with these two four cylinder cars with the engine in question.

    The 2011 Sonata with this engine even has direct injection and nearly 200hp, with improved MPG’s. You don’t have to believe me on this point – Hyundai’s letting the world know this all by themselves just fine.

  • avatar
    Dave M.

    2011 is nothing more than a Camry with gas pedals that do not get stuck.

    At a cheaper price, I assume. Hyundai will mostly screw Toyota moreso than Honda, as long as Honda can get back it’s styling mojo to match their usual engine prowess.

    I’m very impressed with the Sonata, Santa Fe, and Genesis….for their price point, you are getting a great value, along with a tremendous drivetrain warranty. The Kia Soul and Sorrento are pretty slick too.

  • avatar
    John R

    “…take advantage of Toyota’s weakness by offering conquest incentives like those now offered by GM, Ford and Chrysler.”

    Chrysis?? PFFFT! Amusing. I’ll still take my chances in a Camry, thanks.

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