Despite Currency Woes, Hyundai Earned $1.2b In The First Three Quarters Of 2010
October 28th, 2010 1:14 PM
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Although the Korean Won has stayed strong this year, hurting the profitability of Korean exports, Hyundai has banked $1.2b in profits in the first three quarters of 2010, reports Automotive News [sub]. Analysts had expected the resurgent automaker to earn closer to $1b in profits, but they say that an even stronger Yen has helped Hyundai cut into the sales of its Japanese competitors. And with a new Elantra, Equus, Sonata Wagon, Veloster sports coupe and other much-anticipated products about to hit the market, Hyundai is expected to keep its momentum rolling. Fujio Ando, adviser at Chibagin Asset management explains
Hyundai, like many other Korean makers, has created a solid structure to manufacture and deliver products at the lowest cost. They also have some of the world’s best-known and hot product designers, while Japanese makers are still using domestic designers. Japan has little chance to win this battle
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"Japanese makers are still using domestic designers" Are there not major Toyota, Honda design centers in California and elsewhere staffed with non-Japanese designers?
Sonata WAGON? I must have missed that memo.
"They also have some of the world’s best-known and hot product designers, while Japanese makers are still using domestic designers" First of all this is not true, as an asset management adviser it looks like he has little information about design studios and how they function. Second, a company can have the best ideas and the best designers, if it doesn't know how to use them all this talent will not help. The acquisition of information or knowledge is not an assurance for success. Competitive advantage requires the best application of that knowledge, continuous learning and innovation. That's the difference between Apple and some car companies, the name of which I don't need to mention because you all know them.
$1.2B in 2010Q1-Q3? That's less than Ford's $1.7B in Q3 alone. But please, TTAC, don't start a Hyundai Death Watch--it's unwarranted.