Hyundai is headquartered out of Seoul, South Korea Holds 80% of automobile sales in Korea Sells about 60% of its production in foreign markets Acquired Kia in 1998 Hyundai Kia 8th most popular brand in the US Sells 80% of its production in foreign markets Low Cost Pricing Strategy Profit margins as low as 3% per unit Vulnerable to changes in exchange rates Economic History 2006: The won appreciates by 7% against US Dollar Sales fall by 35% at Hyundai, 94% at Kia 2007: won hits 10 year high Sell more units just to stay even 2008: Kia and Hyundai profits fall by 30%
2009: Sales increased expanding presence in the US A more valuable won hurts Hyundai & Kia's competitiveness Low price strategy= Low per unit profit margins Cars sold in the US are worth less 15 cars in 2006= 14 cars in 2005
Hyundai is headquartered out of Seoul, South Korea Holds 80% of automobile sales in Korea Sells about 60% of its production in foreign markets Acquired Kia in 1998 Hyundai Kia 8th most popular brand in the US Sells 80% of its production in foreign markets Low Cost Pricing Strategy Profit margins as low as 3% per unit Vulnerable to changes in exchange rates Economic History 2006: The won appreciates by 7% against US Dollar Sales fall by 35% at Hyundai, 94% at Kia 2007: won hits 10 year high Sell more units just to stay even 2008: Kia and Hyundai profits fall by 30%
2009: Sales increased expanding presence in the US A more valuable won hurts Hyundai & Kia's competitiveness Low price strategy= Low per unit profit margins Cars sold in the US are worth less 15 cars in 2006= 14 cars in 2005