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Hyundai plans to raise its worldwide production capacity (including Kia) to 6.5 million a year by 2012, company sources told The Nikkei [sub]. To put that into perspective: In 2009, the Hyundai/Kia chaebol sold 4,645,776 cars. To put it further into perspective: GM sold 6.5m cars worldwide in 2009. Here is the expansion blueprint:
- Kia will expand annual capacity at its U.S. plant in Georgia to 150,000 cars before the end of this year. Expansion can go up to 300,000 units within several years.
- Hyundai will build a third factory in China, adding 300,000 cars to the 600,000 cars a year capacity at two Beijing plants.
- Hyundai plans to open plants in Russia and Brazil.
- Hyundai plans to raise output capacity at its plant in the Czech Republic.
- Kia Motors will boost production in Slovakia.
Hyundai/Kia is currently the world’s fifth-largest car maker by market share. By the end of the year, the production ranking will most likely be #1 GM, #2 Toyota, #3 Volkswagen, #4 Hyundai, #5 Ford. Getting into the top 3 will be a bit harder.
Some questions. Hyundai and Kia seem to be taking the automotive world by storm, but in local ads, they’re being hawked by dealers who still yell “no job, no credit, no problem.” You also see them in plentiful rental fleets. Are they discounting to keep the factory working? Are these still cars you won’t want to own in 5 years?
Are these still cars you won’t want to own in 5 years? Yes.
“Are these still cars you won’t want to own in 5 years?”
My 01 Elantra is still running strong at 148k miles. I bought it used with 138k, put some work into it, and have a decent cheap car.
Hyundai’s 10/100 warranty (5/60 for second-hand) would be killing them if they didn’t have the quality to back it up. That’s what happened to Chrysler’s original 7/70 warranty – they had to discontinue it since they couldn’t afford the repairs.
Surprising to see how much of the capacity increases are planned for emerging/non-western markets. Here in North America we tend to see Hyundai as the ugly duckling which grew upscale to take on Toyota, but globally it is a different sort of race. It seems that Hyundai is just as determined to expand its reach at the bottom end as the top.
You make the production increase sound improbable. It’s only 12% per year compounded. That’s aggressive, but not unrealistic given Hyundai’s momentum.
GM’s momentum is the other direction. Hyundai’s real competitor will be Toyota.
Looks like that likeable little underdog is actually just a volume hungry, greedy, mega corp. just like the rest of them. It will bite them in the a$$ someday too. (and in some cases it already has)
Name one carmaker that isn’t. Betcha a Toyota forklift that you can’t. How about a Honda pressure washer?
If it wasn’t for the profitability of these lower-line products, who knows whether modern cars would be as well-developed as they are today?
I believe I said…”just like the rest of them”
I’m glad you agree with me…