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P.S. Since this is not specifically about the Genesis, it doesn't belong in the Genesis Reviews forum. I'm moving this into the Lounge...
Hyundai Reports Record Profit
Hyundai Motor outshined its global rivals by reporting a record quarterly profit Thursday, another sign that the once middling carmaker from South Korea was translating the global economic downturn into an opportunity to catch up with American and Japanese auto giants mired in losses.
Hyundai is the most aggressive among smaller carmakers who saw the misery of the giants, like the bankruptcies of Chrysler and General Motors, as a chance for growth.
While others have been struggling to cut costs, shutting down assembly lines and firing workers, Hyundai has been radically increasing spending on marketing, especially in the United States, seizing on its improving global brand image, a growing appetite for smaller cars and the windfalls from a weak South Korean currency that makes its cars cheaper.
“The way, and a smart way, Hyundai thinks is this: ‘You can’t expand your market share when everyone else is doing well. But you’ve got a chance when everyone is struggling,”’ said Kevin Lee, an auto analyst with Goodmorning Shinhan Securities. “And Hyundai thinks this is the time.”
Hyundai’s net income for the quarter from April through June soared 48 percent from a year earlier to 811.9 billion won, or $650 million, the carmaker said Thursday. That compares with 546.9 billion won in net profit a year earlier and a 225 billion won profit in the first quarter of this year.
In comparison, Ford Motor said Thursday that it posted a $2.3 billion quarterly net profit, mainly because of debt restructuring actions, but without the one-time items, Ford would have lost $638 million.
Besides the weak won, Hyundai benefited at home from government incentives, like sales tax cuts and easier consumer financing, that increased domestic demands for cars.
This year, it challenged its American rivals by offering U.S. buyers an assurance that if they lost their jobs within a year of buying a Hyundai car, they could return it. Others had to follow suit with similar offers.
Read more...
P.S. Since this is not specifically about the Genesis, it doesn't belong in the Genesis Reviews forum. I'm moving this into the Lounge...
Hyundai Reports Record Profit
Hyundai Motor outshined its global rivals by reporting a record quarterly profit Thursday, another sign that the once middling carmaker from South Korea was translating the global economic downturn into an opportunity to catch up with American and Japanese auto giants mired in losses.
Hyundai is the most aggressive among smaller carmakers who saw the misery of the giants, like the bankruptcies of Chrysler and General Motors, as a chance for growth.
While others have been struggling to cut costs, shutting down assembly lines and firing workers, Hyundai has been radically increasing spending on marketing, especially in the United States, seizing on its improving global brand image, a growing appetite for smaller cars and the windfalls from a weak South Korean currency that makes its cars cheaper.
“The way, and a smart way, Hyundai thinks is this: ‘You can’t expand your market share when everyone else is doing well. But you’ve got a chance when everyone is struggling,”’ said Kevin Lee, an auto analyst with Goodmorning Shinhan Securities. “And Hyundai thinks this is the time.”
Hyundai’s net income for the quarter from April through June soared 48 percent from a year earlier to 811.9 billion won, or $650 million, the carmaker said Thursday. That compares with 546.9 billion won in net profit a year earlier and a 225 billion won profit in the first quarter of this year.
In comparison, Ford Motor said Thursday that it posted a $2.3 billion quarterly net profit, mainly because of debt restructuring actions, but without the one-time items, Ford would have lost $638 million.
Besides the weak won, Hyundai benefited at home from government incentives, like sales tax cuts and easier consumer financing, that increased domestic demands for cars.
This year, it challenged its American rivals by offering U.S. buyers an assurance that if they lost their jobs within a year of buying a Hyundai car, they could return it. Others had to follow suit with similar offers.
Read more...
