Hyundai & Trade Agreement

[Ricky Lee]

The new US/South Korea free-trade agreement calls for Korea to lower tariffs on US cars, and the US to cut duties on Korean-made Hyundais and Kias. Anyone care to speculate on whether that will translate into a price cut on a Genesis?

 

[BacktoHyundaibychoice]

The new US/South Korea free-trade agreement calls for Korea to lower tariffs on US cars, and the US to cut duties on Korean-made Hyundais and Kias. Anyone care to speculate on whether that will translate into a price cut on a Genesis?

"Speculate" being the key word, here's my 2 cents:

The value of the Won compared to the dollar is the most important factor. The stronger the won, the more it costs to manufacture the Genesis, the less the profit to Hyundai. That strong Won in the past is what led Hyundai to build it's best selling cars here, where the dollar is weak. VW, BMW, others did the same to lower their costs in the face of a very strong
DMark/Euro.

If the Won continues it's recent slide, you MAY see a reduction in Genny pricing... though not likely. If as predicted, and the Won rebounds in the first quarter next year, then no way.

Simpler answer to your question: no, reduced tariffs will have little impact on Genny pricing.