The Hyundai and Kia Manifesto

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How the Korean Brands Won Over the U.S. Market

"Bischoff!" Volkswagen CEO Martin Winterkorn calls out in a thick German accent to his design chief, Klaus Bischoff, at the 2011 Frankfurt Motor Show while examining Hyundai's new Euro-market i30. As you can see in a YouTube clip, Winterkorn was not thrilled when he found the i30's adjustable steering column operates more smoothly than those in his own Volkswagens.

"I've watched that video a lot," confesses John Krafcik, head of Hyundai North America, comically reenacting parts of it. "It's always good for a smile or a laugh."

Krafcik is understandably proud that Hyundai -- which not long ago was considered an industry punchline -- is now a major player closely watched by Winterkorn and others at the top of the automotive chain. The Koreans have been sweating the details for years, and their dogged efforts are paying off in the form of record sales and higher than ever U.S. market share.

Hyundai, along with its Kia counterpart, are run separately from one another in the U.S. with the exception of technical development. But they've excelled at the same things: getting new models out quickly, and constantly updating and improving their existing lineups. The quality changes began making a big difference in the early 2000s thanks in part to reverse Q&A sessions with journalists on press drives. Although some of the media found the practice irksome, it has proven to be an effective way for the Korean brands to pinpoint flaws. Bob Lutz used a similar strategy when he hired on a small consortium of auto journalists as consultants during his last stint with GM.

Michael Sprague, Kia's vice president of marketing communications, said journalists nitpicked about the quality of the Kia Soul's interior plastics during its March 2009 press introduction. By the time the Soul hit showrooms three months later, Sprague claims Kia made 18 improvements to the car based on that feedback.

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