Hyundai Motor profit slides 48%

[devellis]

Article is here.

It looks like the corporation as a whole is having some challenges and is counting on the G70, among other new offerings, to help out in the next quarter. The article states that more than 15% of the total market for Hyundai is the US, and I suspect that will be higher for Genesis once the brand is established.
Not sure how any of this will impact sales, dealerships, pricing, or anything else in the US as the G70 rolls out but it's an interesting bit of news and not necessarily positive for Korea's second largest corporation (after Samsung).

 

[Gone With The Wind 2]

Their best bet is on the newly refreshed crossovers hitting the lots soon. The stuff they have seems to be aging a bit and overdue for an update. That's assuming they really step up their game. They've become somewhat stagnant as of late while the competition has raised the bar. Plus, the Genesis crossover will help the bottom line. But yeah, if it's not a truck, crossover, or SUV, it's not selling.

 

[Mark_888]

Article is here.

It looks like the corporation as a whole is having some challenges and is counting on the G70, among other new offerings, to help out in the next quarter. The article states that more than 15% of the total market for Hyundai is the US, and I suspect that will be higher for Genesis once the brand is established.
Not sure how any of this will impact sales, dealerships, pricing, or anything else in the US as the G70 rolls out but it's an interesting bit of news and not necessarily positive for Korea's second largest corporation (after Samsung).

I don't see Genesis sales helping anytime soon. G80 and G90 sales have decreased sharply so far in 2017, and once they cut the dealership network to 100 locations, sales are likely to decrease further.

 

[devellis]

Good points. A bit scary, though.

 

[Mark_888]

Good points. A bit scary, though.

I believe that Hyundai sells about 5 million vehicles worldwide each year, so they are probably not worried too much about Genesis, which they view as a long term project.

 

[dougjp]

I think the issues are not enough new SUVs, but even more, the massive business disruption they experienced in China over the missiles. Chinese wouldn't buy anything for a while until the problem was resolved. I agree with others that Genesis is fairly irrelevant in the overall scheme of things. Its a massive worldwide Company.

 

[EdP]

I believe that Hyundai sells about 5 million vehicles worldwide each year, so they are probably not worried too much about Genesis, which they view as a long term project.

Many don't have any idea of the enormity of the corporation.
I was behind a Hyundai today on the highway. This model had 8 wheels on it.
Hyundai Trailers

They recently got an order for 20 ships for $2.8 billion too

 

[Mcc]

Many don't have any idea of the enormity of the corporation.
I was behind a Hyundai today on the highway. This model had 8 wheels on it.
Hyundai Trailers

They recently got an order for 20 ships for $2.8 billion too

You are right. I certainly didn’t realize it was this extensive. Never stopped to think about it. Very impressive.

 

[Mark_888]

There is a lot of confusion about Hyundai. Here is an explanation from Wikipedia:

"Following the 1997 East Asian financial crisis and Chung's death, Hyundai underwent a major restructuring and break-up, which reduced the Hyundai Group's business to encompass only container shipping services, the manufacturing of lifts, and tourism. Today, most companies bearing the name Hyundai are not legally connected to Hyundai Group. They include Hyundai Motor Group, Hyundai Department Store Group, Hyundai Heavy Industries Group and Hyundai Development Company. However, most of the former subsidiaries of the Hyundai conglomerate continue to be run by relatives of Chung. If these companies were considered as forming a single broad family business, then it would remain the largest company in South Korea with enormous economic and political power in the country."​

​

The Hyundai we know about is Hyundai Motor Group, which is basically automobiles, steel, construction & engineering, finance, etc. Hyundai Heavy Industries is now a completely separate company that does ship building, shipping containers, offshore engineering and construction, and other stuff. The company once known as Hyundai Electronics (now Hynix Semiconductor) is another part of the former Hyundai empire, that is a very large maker of semiconductors (computer chips).

Hyundai Motor Group includes Hyundai Motor Company, about 33% of Kia, and a partial share of various auto parts companies including Mobis. All three companies (Hyundai Motor, Kia, and Mobis own shares in each other, making their relationship a bit complex. Currently, parts maker Hyundai Mobis owns 20.8 per cent of Hyundai Motor, which itself owns 33.9 per cent of Kia. In turn, Kia owns 16.9 per cent of Hyundai Mobis.

Very recently, Hyundai introduced plans to completely spin off all their share of Mobis, but earlier this week an "activist hedge fund" in the USA (Elliot Asset Management) announced it has bought very large stakes in Hyundai Motor, Kia, and Mobis, and opposes the spinoff, and Elliot wants Hyundai Mobis and Hyundai Motor to merge.

 

[YEH]

4 biggest issues have been (1) valuation of the Won, (2) ever escalating wages (not to mention the just about annual work stoppage or strike, (3) the Chinese govt. leading what was basically a boycott over Korean products over the THAAD issue and (4) weakness in the American market due to over-reliance on sedans and a limited and aging CUV lineup.

Otoh, Hyundai (and Kia) sales have been growing in Europe (H/K have Ford Europe within their sites) and together sell more than any other Asian automaker (by a good margin), sales are growing in Mexico (a relatively new market), continue to be one of the dominant brands in India (w/ Kia set to join Hyundai), and the Russian market is recovering.

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[BlancaGenny]

+1 from what omegafiler stated. The SUV/CUV is the most profitable aspect of most car companies. Genesis can't rely solely on the G series and expect to stay afloat. Being that 90% percent (close enough) of us have a sedan, we can't simpathize with it. I want to see Genesis succeed and take over the luxury market. However, they NEED and HAVE TO advertise this car. I'm not just saying on commercials or signs on the side of an Interstate, they need to have test drives just like the Stinger. People need their minds changed about Hyundai as a whole which means all of the car brands Hyundai includes (KIA, Hyundai, Genesis). Chevy does it perfectly with "real people" commercials and side-by-side comparisons.

If anyone here works for Genesis, get with me. I have some ideas lol

 

[Mark_888]

People need their minds changed about Hyundai as a whole which means all of the car brands Hyundai includes (KIA, Hyundai, Genesis).

Although Hyundai Motor Group in Korea owns about 33% of Kia, the two companies operate independently of each other when it comes to marketing. Hyundai and Kia both own part of Mobis and they have significant technology and parts sharing (and sometimes joint manufacturing) agreements, but they compete with each other in all other respects.

Further, there is no relationship whatsoever between Hyundai Motor America (which includes Genesis Motor America) and Kia Motors America.

Part of the confusion is that at one time, Hyundai Motor in Korea did own a majority stake in Kia, but no longer.

 

[BlancaGenny]

Although Hyundai Motor Group in Korea owns about 33% of Kia, the two companies operate independently of each other when it comes to marketing. Hyundai and Kia both own part of Mobis and they have significant technology and parts sharing (and sometimes joint manufacturing) agreements, but they compete with each other in all other respects.

Further, there is no relationship whatsoever between Hyundai Motor America (which includes Genesis Motor America) and Kia Motors America.

Part of the confusion is that at one time, Hyundai Motor in Korea did own a majority stake in Kia, but no longer.

That's precisely what I'm talking about. 10 or so years ago, they were more closely related when it came to stake. That is the time when their cars were "bad" and Hyundai's and KIA's were associated together as bad cars. If someone has a negative feeling towards Hyundai, for example, they would more than likely have the same nagetive feeling about KIA. If they were to drive a new or recently new car from Hyundai, Kia, Genesis, their attitudes would change.

 

[YEH]

^ Hyundai's reliability started to improve when they stopped using Mitsu components.

Kia's started to improve after they were purchased by Hyundai and started using Hyundai components instead of Mazda's (Mazda, itself, has improved since then).