Well, it seems that the wrecked US-Korean trade pact only affects U.S. food exports to Korea. It most certainly does not seem to have any influence on Hyundai. Hyundai expects to set a company record for annual U.S. sales next week already, and to sell even more in 2011.
With a fresh lineup of cars, including the successful Sonata sedan, Hyundai expects to pierce the 500,000 unit mark by mid-December and thinks it will end 2010 with a 4.8 percent share of the U.S. market.
As for the U.S. market as a whole, Hyundai U.S. chief John Krafcik is more sanguine. He hopes it will rise from about 11.3 million this year to 12.3 million vehicles in 2011. That’s about 8.8 percent, and Krafcik think the growth will almost purely come from sales to retail customers, reports Reuters.
“As we look at how heavy the industry went to the fleet market to keep sales up this year, it is pretty amazing. We are not going to have that next year,” Krafcik said.
To get to a million more in 2011, retail sales would have to rise by about 10 percent, and Krafcik thinks it’s a tall order, with retail sales closely tied to housing starts and home equity, and with uncertainty amid high unemployment. “That is asking a lot,” Krafcik said.
Krafcik isn’t looking at increasing his market share a whole lot more in 2011. He doesn’t have enough cars to sell. Hyundai has been hitting maximum production capacity in the United States, with sales up 21 percent through the first 10 months of 2010, and will have similar limits next year, Krafcik said. Hyundai increased capacity in the U.S. by about 100,000 units this year. 400,000 of the 500,000 cars are made in the U.S.
Krafcik could use a few more plants: “I think it is fair to say we will probably be production constrained next year as well.”
2011 will be interesting. We still have a terrible supply of the Tucson, and having the Elantra built in Alabama will constrain Sonata production again, while the Santa Fe will be constrained at the Kia plant in Georgia by the hot selling Sorento and the upcoming production of the Optima. Don’t expect big discounts on Hyundais in 2011.
Kudos to Hyundai for the improvements they’ve made to their line-up over the past few years. Their vehicles are now competent by any measure and stylish, too.
My one quibble is their dealer ads on the North American end of things. Our local Hyundai TV ads still have a used car lot, bargain basement / circus type atmosphere.
Guess that means the stealerships will be dusting off the “ADM” signs, or in this case borrowing them for the Toyota store, as they won’t be needing them anytime soon. So, with the price being compromised by the dealer, will the Hyundai lineup stand on its own?
Competition will keep most of the dealers in check. You just aren’t going to see big rebates from Hyundai on the new cars. You can still get great deals on the leftover 2010 Elantras and Accents, though.
When we speak of natural resources and exports/imports, the one extremely important gift this country has is farm land.
Regardless of oil and manufactured imports that effect our trade balance, our available farm land and the ability to produce enough food to feed our people, but the world’s population is a power we have never used.
We give food to the world because there is something sacred in using food as a weapon or in trade.
For some reason, you an use oil as a weapon, but not food.
My main point here is that it is a given that the world cannot control its population. Another sacred right is to bare children…no matter the ability to support it but its parents or the land in which it is brought.
So, FOOD is the real trade weapon.
We, the United States, should right now…today…begin to put into place powerful zoning laws restricting the destruction of our valuable, non-replaceable farm land.
Europe has had these powerful farm land zones forever. They know the value of what little land they have.
THIS will help us reduce the horrible 2 hour traffic commutes from far out suburbs into the cities.
This will help our cities fight flight to the suburbs.
This will force the purchases of smaller city vehicles.
This will SAVE GAS!
We should begin to use our food as other nations use their oil…make others pay dearly for it.
Forget about Korea not wanting our beef.
Great! It’s awfully expensive and environmentally damaging to produce to begin with.
Leave what we have here. Maybe the cost to purchase it here will stay down.
Before we start taxing the hell out of ourselves, let’s make others pay greatly for our farm produced foods.
What Hyundai sells well in the US is peace of mind, customer service, and value for the dollar. Their vehicles are nothing special in and of themselves. It’s their value and customer service that sets them apart, with their 10 yr/100k warranty with free roadside assistance. They are in the midst of their renaissance, and everyone loves a winner. It won’t last forever. Soon it will be someone else’s turn. Now if Ford would only implement the same 10 year/100,000 mile warranty and lower their doggone MSRPs…
How much of a conspiracy theorist nut would I be if I predicted some sort of forthcoming government intervention to limit the success of another foreign car company who dares become successful here without UAW backing?
Back to my tinfoil hat project.
You mean because the government owns two of the competitors and gets donations from the UAW? Why would they do anything to hurt Toyota Hyundai? You really are nuts…..
The take-away consensus on TTAC:
1) Toyota has grown too big too fast: Bad
2) Hyundai is growing bigger in a fast way: Good