In 2006 ,the won rose in value by about 7 percent against the U.S. dollar. A stronger won means that Hyundai and Kia vehicles sold in the United States for dollars are recorded at a lower value when translated back into won, which has hurt the financial performance of both companies, In 2006, despite rising unit sales, profits at Hyundai fell 35 percent, and those at Kia fell some 94 percent. Kia had to sell 15 cars on average in the United States in 2006 to make the same amount of revenue and profit that it got from 14 cars in 2005.If the won continues to gain in value against the dollar going forward, as many analysts predict, Hundai and Kia may be forced to abandon their low-price strategy ,and start to raise prices in the United States.
The possibility that the won will continue to strengthen against the dollar and other major currencies is also a spur to increasing output outside of Korea. Hyundai opened its first U.S. automobile plant in Montgomery, Alabama, in 2005 ,and recently announced plans to build and engine plant close by Kia too, is expanding its presence in the United States as a hedge against adverse currency movements. In 2006, he company broke ground on a U.S. manufacturing plan in Georgia. The plant was opened in 2009.