#Korea
Built Hyundai Tough?
Hyundai is riding high. They’re being thought of in the same vein as Honda in terms of quality, the same as Ford in terms of value and the same as Toyota in terms of reliability. So what could be left for Hyundai to do? They want you to think of them as a …
What Do The BMW 523i And The Ford Taurus Have In Common?
Give up? The answer is that they’re giving South Korea a headache. OK, let’s go back a bit. The Korea Times reports that something funny is happening to the South Korean car market. Effectively, for years, the South Korean car market used to be closed off to foreign competition, thus, keeping domestic production and sales high. The market for foreign was only for the exclusively rich who didn’t mind paying the tariffs. But now, even the proletariat is getting in on the act. In spite of a global slump in the market, the Korea Automobile Importers and Distributors Association (KAIDA) reports that foreign imports rose, month on month, by 51.1 percent, to 7,208 units in April. Still a drop in the water: Korea makes 3.5m cars in a good year, of which 2.5m are exported. But it’s a start.
GM Doesn't Euthanize Daewoo Brand, Adds Chevy Instead
If there were a global brand that GM should have killed, it’s probably Daewoo. Outside the South Korean market, the name is so associated with cheap, crummy cars, that GM rebadges nearly all of Daewoo’s exports as Chevrolets. And even then, the “Chevwoo” brand is tainted by the fact that GM refuses to take ownership of its troubled South Korean operations, and enforce a one-badge policy in line with Chevy’s global branding. And it’s not like the Daewoo name is all that beloved in Korea either, as The General recently figured out that as many as 40 percent of all Korean Daewoo buyers were replacing their badges with Chevy bowties supplied by the aftermarket. In fact, GM was threatening to get rid of the Daewoo name altogether and replacing it with Chevrolet. But apparently because of fears of alienating Korean customers and “resistance from labor unions,” GM has decided to introduce the Chevrolet brand to Korea without killing off Daewoo. As GM’s presser puts it:
today’s announcement is about brand coexistence, not brand replacement
Sound familiar?
Hello Elantra!
Hyundai Nets Over $1b, Breaks Quarterly Profit Record Again
Ask the Best And The Brightest: Does South Korea's Prez Have A Thing For Hyundai?
Free market economics are a simple process. Or so they say. Dive in, and whoever survives, survives. Let the market decide. According to the pure tenets of free market economics, it’s important that the government shows no favoritism. Yeah, right.
The Korea Times reports that President Lee Myung-Bak is showing more than just interest in Hyundai-Kia.
Toyota Troubles Cause Quality Increase. In Korea And China
From the unintended consequences dept. comes yet another humdinger. Some keep saying the recent Toyota spat was intended to put the Japanese competition in its place. Instead, it ups the competitiveness of Korean and Chinese auto makers, says The Nikkei [sub].
Hyundai Loses Idea Man
Joel Ewanick is a name you’re probably not familiar with. I wouldn’t blame you, he works in Marketing, which is a pretty dull affair. However, you may be familiar with his work. He helped bring Hyundai to the mainstream with clever and well executed marketing plans. The Hyundai Assurance Plan (lose your job, return your car) was his idea. Not to mention during 2009, when the car industry was failing, his marketing plans helped Hyundai increase market share and even turn a good profit. Advertising during the Superbowl? His idea. Advertising at the Academy Awards? His idea again. Hyundai’s market share grew from 3 percent to 4.4 percent as of February (according to data from Autodata). To cap it all, he was named Marketer of the Year 2009 (the year of carmageddon) by Advertsing Age. So why am I writing about him? Well, he’s leaving Hyundai.
GM's Foreign Relations Suck
Over the daily Toyota runaway stories, it’s easy to forget the plight of GM and its children abroad. If you think that’s the idea, then you are a miserable conspiracy theorist, and you should stand in the corner. With that in mind, let’s check in with GM and its worldwide siblings to see how they are doing.
Daewoo-wo-wo-wo: White Flags Over Korea?
All kinds of strange news are coming from GM’s Korean foster child Daewoo. Two days ago, Daewoo CEO Mike Arcamone announced: “In 2010, GM Daewoo will be profitable. That is my target.” That didn’t get much traction. Reporters wanted to know how bad last year’s numbers were. Arcamone remained tight-lipped. He admitted red ink for 2009, how much remains anybody’s guess. In 2008, it was $773m worth of red. Last October Daewoo-is-me had to be bailed out by the bailed-out GM to the tune of $413m. Arcamone has some soothing news: “We currently do not seek any other financial support from our creditors.” The operative word is “currently.” There is one way to stop the hemorrhage for good: Pack it in.
Hyundai Turns Blue
Volkswagen’s range of BlueMotion cars are their flagship “Look at us! We’re bluegreen!” vehicles. They employ techniques like a remapped engine, longer gear ratios and better aerodynamics to wring the last bit of mpg out of an ICU. The Blue Oval of Ford has the EcoBoost systems which are engines with a turbocharger or direct injection. That’s said to give power and torque on par with larger engine sizes, resulting in better fuel consumption and lower emissions. Daimler has its Bluetec, a slightly disgusting technology that requires overpriced urea to be added to your Benz – urea, as the name indicates, originally was a by-product of urine. (Now why didn’t the hyperkilometering AutoBild think of THAT?) Anyway, Hyundai wants in on the act.
Korea: Washington Is Picking On Toyota
According to popular wisdom, the Koreans have no love lost for the Japanese. And likewise. What’s more, Koreans and Japanese car makers are bitter competitors for foreign market share. So wouldn’t it stand to reason that Korea would jump on the “down with Toyota” bandwagon with their 96 million feet? Just the opposite is true.
The Chosun Iibo, according to Wikipedia “one of the major newspapers in South Korea,” takes the position that Toyota could very well be “a scapegoat for U.S.-Japan squabbling.”
Hyundai: Look, We're European!
While Toyota is trying to convince the American public that they’re as American as losing at hockey Wal-Mart, Hyundai is pulling the same stunt over at the other side of the pond. Forbes reports that Hyundai wants to become a card carrying member of the European Automobile Manufacturers’ Association (ACEA).
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