mettech Posted May 23, 2012 Share Posted May 23, 2012 http://www.detroitnews.com/article/20120523/OPINION03/205230311/1148/auto01/Korean-automakers-success-threaten-slumping-European-competitors As many European mass car manufacturers struggle to survive, their Korean counterparts Hyundai and Kia sail on serenely and relentlessly. The Korean onslaught has caused consternation in the European industry as its sales suffer in the recession. Ford Europe has complained that a recent free trade agreement with South Korea was one-sided and hinted that retaliatory action was needed. The Koreans have grown so successful in global markets that some experts tip the conglomerate to even overtake mighty Volkswagen, which has set its sights on being the biggest car producer in the world by 2018. Hyundai and its sibling company Kia have successfully set up operations in Europe and America, initially based on low prices, rock-solid reliability and breathtaking guarantees. The fact that their cars often displayed grimace-inducing ugliness and/or looked like boxes on wheels didn't matter. Value was everything. But a second wave of product development has produced a much more frightening threat to European incumbents. Kia and Hyundai have now added style to their product lines and sell on excitement as well as retaining the basic virtues that led to early success. Handsome cars like the Hyundai i30 and ix35 and Kia Optima and Sportage make many of their European competitors look like commodity producers. The latest sales figures show the impact the Koreans are having. According to British newsletter Automotive Industry Data, while overall sales in Western Europe crumbled nearly 8 percent in the first four months of 2012 to 4.2 million, Hyundai and Kia combined raised their sales 15.8 percent compared with the same period of 2011 for a market share of 5.5 percent versus 4.4 percent. They have been even more successful in the U.S., raising market share to a record 9.5 percent in the first four months of 2012, according to AID, which says it could reach to between 12 and 13 percent five years from now. From The Detroit News: http://www.detroitnews.com/article/20120523/OPINION03/205230311#ixzz1vge5mu22 Quote Link to comment Share on other sites More sharing options...
lfeg Posted May 23, 2012 Share Posted May 23, 2012 The European manufacturers (and national governments) do not like this. It will force them to reduce the number of facilities and headcount to get production capability in synch with demand and reduce costs. Quote Link to comment Share on other sites More sharing options...
FordBuyer Posted May 23, 2012 Share Posted May 23, 2012 http://www.detroitne...ean-competitors As many European mass car manufacturers struggle to survive, their Korean counterparts Hyundai and Kia sail on serenely and relentlessly. The Korean onslaught has caused consternation in the European industry as its sales suffer in the recession. Ford Europe has complained that a recent free trade agreement with South Korea was one-sided and hinted that retaliatory action was needed. The Koreans have grown so successful in global markets that some experts tip the conglomerate to even overtake mighty Volkswagen, which has set its sights on being the biggest car producer in the world by 2018. Hyundai and its sibling company Kia have successfully set up operations in Europe and America, initially based on low prices, rock-solid reliability and breathtaking guarantees. The fact that their cars often displayed grimace-inducing ugliness and/or looked like boxes on wheels didn't matter. Value was everything. But a second wave of product development has produced a much more frightening threat to European incumbents. Kia and Hyundai have now added style to their product lines and sell on excitement as well as retaining the basic virtues that led to early success. Handsome cars like the Hyundai i30 and ix35 and Kia Optima and Sportage make many of their European competitors look like commodity producers. The latest sales figures show the impact the Koreans are having. According to British newsletter Automotive Industry Data, while overall sales in Western Europe crumbled nearly 8 percent in the first four months of 2012 to 4.2 million, Hyundai and Kia combined raised their sales 15.8 percent compared with the same period of 2011 for a market share of 5.5 percent versus 4.4 percent. They have been even more successful in the U.S., raising market share to a record 9.5 percent in the first four months of 2012, according to AID, which says it could reach to between 12 and 13 percent five years from now. From The Detroit News: http://www.detroitne...1#ixzz1vge5mu22 Look at what Samsung has done to SONY and just about every other electronics company in world save Apple. Samsung and LG are also doing same to Whirlpool in appliance industry. Definitely a pattern or trend here. Tires is another area. Quote Link to comment Share on other sites More sharing options...
retro-man Posted May 24, 2012 Share Posted May 24, 2012 Yeah - I've noticed LG crowding out Whirlpool, GE, Frigidaire in the big box stores - one of our last bastions of domestic manufacturing, and yeah , poor Sony. Talk about losing your mojo. They've got about as much "hip" left as Hewlitt Packard. Hyundai and Kia have been putting out some very compelling product, no denying that. Quote Link to comment Share on other sites More sharing options...
GTwannabe Posted May 24, 2012 Share Posted May 24, 2012 Look at what Samsung has done to SONY and just about every other electronics company in world save Apple. Samsung and LG are also doing same to Whirlpool in appliance industry. Definitely a pattern or trend here. Tires is another area. They have all outsourced production to either China or Mexico; the "brand" just does the design work and marketing. Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 24, 2012 Share Posted May 24, 2012 They have all outsourced production to either China or Mexico; the "brand" just does the design work and marketing. Not quite true. http://www.timesfreepress.com/news/2012/mar/06/tenn-200-million-whirlpool-plant-marks-opening/ Whirpool just opened a new $200M plant in Tennessee, their largest ever. Quote Link to comment Share on other sites More sharing options...
retro-man Posted May 24, 2012 Share Posted May 24, 2012 Yeah, major appliances are one of the last bastions of American consumer goods manufacturing. And it is under heavy assault. It was always a bit of a mystery to me why the Japanese didn't go after it years ago the way the Koreans are now. Quote Link to comment Share on other sites More sharing options...
GTwannabe Posted May 25, 2012 Share Posted May 25, 2012 Not quite true. http://www.timesfree...-marks-opening/ Whirpool just opened a new $200M plant in Tennessee, their largest ever. Some have decided to move production to the US due to ever-increasing fuel/shipping prices. However, they're only setting up shop in right to work states. 1 Quote Link to comment Share on other sites More sharing options...
aneekr Posted May 25, 2012 Share Posted May 25, 2012 Some have decided to move production to the US due to ever-increasing fuel/shipping prices. However, they're only setting up shop in right to work states. GE Consumer & Industrial NA recently expanded manufacturing operations at Appliance Park in Kentucky, which does not have right-to-work laws. Quote Link to comment Share on other sites More sharing options...
retro-man Posted May 25, 2012 Share Posted May 25, 2012 (edited) I think Amana is still flogging it out in Iowa too. Evidently Iowa is a right to work state. Whenever you say "right to work state" I immediately think of the deep South - with all the imagery that conjures up. Edited May 25, 2012 by retro-man Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 25, 2012 Share Posted May 25, 2012 (edited) The latest sales figures show the impact the Koreans are having. According to British newsletter Automotive Industry Data, while overall sales in Western Europe crumbled nearly 8 percent in the first four months of 2012 to 4.2 million, Hyundai and Kia combined raised their sales 15.8 percent compared with the same period of 2011 for a market share of 5.5 percent versus 4.4 percent. They have been even more successful in the U.S., raising market share to a record 9.5 percent in the first four months of 2012, according to AID, which says it could reach to between 12 and 13 percent five years from now. From The Detroit News: http://www.detroitne...1#ixzz1vge5mu22 When an article talks in percentages without actual sales numbers, you can bet the impressive increases are not backed up by significant volume. The European market is full of import taxes to keep external competitors at bay. There is no way that any korean product is selling in any significant volume - by that I mean in the top five places of any of the major vehicle segments. I defy anyone to present actual figures that show Hyundai or Kia are as popular in Europe as those percentages pretend. At the moment Europe is a million sales a month, Hyundai or Kia wouldn't even be a tenth of that each month. How's that for a challenge? Edited May 25, 2012 by jpd80 Quote Link to comment Share on other sites More sharing options...
Ovaltine Posted May 27, 2012 Share Posted May 27, 2012 (edited) Very interesting article. The ironic thing about it is that I was posting similar sentiments about the same juggernaut that I was able to detect was coming by the build quality, warranty, etc. of my 2004.5 Kia Spectra back in 2004 when I bought it new. Most EVERYONE on here thought I was nuts, full of sh*t, etc., etc., but I had to keep telling them that I had enough automotive experience to know that these two companies were the real deal. Many of the "oldsters" on here who remember the beatings I took will attest to the above. I had always said that the main purpose of my postings were to be a warning to anyone willing to pay attention and spread the word internally at FoMoCo. At this point I think Ford has responded well product-wise, but I still think there's room for improvement on a handful of fronts: 1. Warranty. Match H/K , no ifs, ands, or buts. 2. Value. Watch the pricing. Profit is good, but so is finding ways to build competitively priced autos. 3. Dealership experience. One of Ford's age-old problems. Keep trying to eliminate the disaffected and dishonest ones. Time will tell which will be the last companies standing. -Ovaltine Edited May 27, 2012 by Ovaltine 2 Quote Link to comment Share on other sites More sharing options...
retro-man Posted May 27, 2012 Share Posted May 27, 2012 (edited) Yes, I remember. There is no longer any question, the Koreans are building desirable cars. Edited May 27, 2012 by retro-man Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 27, 2012 Share Posted May 27, 2012 But there is a big question about the degree of impact or penetration into the European market. Let's see some real numbers compared to Euro competitors instead of hiding behind percentages.. Quote Link to comment Share on other sites More sharing options...
BrewfanGRB Posted May 27, 2012 Share Posted May 27, 2012 GE makes a compelling product in the consumer appliance market, IMO...with the same tech features LG offers on theirs. I thought Whirlpool made equipment badged as Kenmores for Sears. If that's true, anyone know if they make them at the factory in TN? And if not, who makes the Kenmores for Sears? Quote Link to comment Share on other sites More sharing options...
MKII Posted May 27, 2012 Share Posted May 27, 2012 (edited) 2012 January to April EUROPEAN UNION Hyundai sales 144,993 Kia sales 106,017 Ford sales 352,213 VW sales 547,418 (not VW group) Toyota sales 177,294 Honda sales 44,588 Opel sales 288,490 Mazda sales 45,979 Renault sales 289,417 Citroen sales 246,451 Peugeot sales 282,142 Fiat sales 205,282 Skoda sales 164,570 Chevy sales 66,780 Nissan sales 155,797 Edited May 27, 2012 by MKII Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 27, 2012 Share Posted May 27, 2012 Thanks MKII, We can see that while Hyundai and Kia sell reasonably well, they still have a way to go. As I suspected, Hyundai + Kia are around 60,000/mth sales combined in a million/mth market. 2012 January to April EUROPEAN UNION Hyundai sales 144,993 Kia sales 106,017 Ford sales 352,213 VW sales 547,418 (not VW group) Toyota sales 177,294 Honda sales 44,588 Opel sales 288,490 Mazda sales 45,979 Renault sales 289,417 Citroen sales 246,451 Peugeot sales 282,142 Fiat sales 205,282 Skoda sales 164,570 Chevy sales 66,780 Nissan sales 155,797 Quote Link to comment Share on other sites More sharing options...
NickF1011 Posted May 29, 2012 Share Posted May 29, 2012 Some have decided to move production to the US due to ever-increasing fuel/shipping prices. However, they're only setting up shop in right to work states. So do right to work states not count as part of America anymore? American jobs are American jobs. 1 Quote Link to comment Share on other sites More sharing options...
aneekr Posted May 29, 2012 Share Posted May 29, 2012 2012 January to April EUROPEAN UNION Hyundai sales 144,993 Kia sales 106,017 Ford sales 352,213 VW sales 547,418 (not VW group) Toyota sales 177,294 Honda sales 44,588 Opel sales 288,490 Mazda sales 45,979 Renault sales 289,417 Citroen sales 246,451 Peugeot sales 282,142 Fiat sales 205,282 Skoda sales 164,570 Chevy sales 66,780 Nissan sales 155,797 Thanks for the stats, MKII. Among the brands whose parent companies are based outside the EU, only those of Ford and GM outsold Hyundai + Kia. A success indeed for these two Korean brands. Quote Link to comment Share on other sites More sharing options...
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