This website uses cookies to ensure you have the best experience. Learn more

Hyundai & Kia Case Study

1020 words - 5 pages

Hyundai and Kia Case Study Analysis
Case summary
Hyundai and Kia are the largest automobile manufacturing group in South Korea. Due to their large volume of exports, Hyundai and Kia are the fourth largest auto manufacturer globally. In 2006, the host currency of the company experienced high appreciation. Since both companies rely on price competiveness as a main strategy the stronger currency meant lower profits. Hyundai and Kia decided to expand production to the United States as a hedge against the volatility of exchange rates.
Is expansion in the United States a good idea?
For Hyundai and Kia to continue expansion in the United States, they must consider how currency exchange rates ...view middle of the document...

On the other hand, it can be argued that if the won depreciates, Hyundai and Kia made a wrong decision to invest in the United States. However, it is important to consider that Hyundai Motor Co.’s investment in the United States offers a safeguard against future fluctuations in exchange rates. Furthermore, Hyundai Motor Co.’s decision to expand helped maintain their low-price strategy during an uncertain economic time.The automotive industry as a whole took a hit during the recent recession. However, Hyundai and Kia’s preserved low-price strategy made their vehicles more attractive for purchase than most during difficult economic times. Although profits decreased in 2008, Hyundai and Kia were the only companies to experience an increase in car sales in 2009. In the long run, it can be said that Hyundai and Kia made a good decision to build plants in the United States.
Current situation
The success of United States plants led Hyundai and Kia to augment production in 2009 by building additional production lines resulting in a 60,000 unit production capacity increase. This additional production capacity in North America supports Hyundai and Kia’s sales goal of 10 million cars per year.
In 2013, Hyundai and Kia shifted their focus from expansion to plant efficiency, improving quality and boosting customer satisfaction (Ohnsman, 2013). This decision followed major recalls for companies like Toyota and Honda, as well as having reached their own production capacity limits. The company’s focus on plant efficiency at their Hyundai plant in Montgomery, Alabama resulted in an increase of nearly 31,000 units.
In 2014, Hyundai Motor Co. announced plans to build two additional production plants in China with operations expected to begin in 2016 (Jin, 2014). The expansion decision was aimed toward protecting their market share of 10 percent in China, as the future demand growth outlook for the region is increasing. Hyundai and Kia’s sales in the United States and Europe have not met growth expectations; therefore, it is important...

Other Essays Like Hyundai & Kia Case Study

Case Study: Prius

872 words - 4 pages Loyola, Marc Zyrus R. Zafe, Daniel Fernandez, Stephanie Praise Malinao, Kate Case Study: Prius “Leading a Wave of Hybrids” I. Company Background Toyota Industries Corporation was founded in 1926 by Sakichi Toyoda. It is the world’s largest vehicle manufacturer. It conducts its business worldwide. Toyota’s vehicles are sold in more than 170 countries and regions. It employs approximately 320,808 people worldwide. It leads

Poters 5 Forces Application on Automobile Industry

5903 words - 24 pages that it will touch 10 million units mark. Indian automobile industry is involved in design, development, manufacture, marketing, and sale of motor vehicles. There are a number of global automotive giants that are upbeat about the expansion plans and collaboration with domestic companies to produce automobiles in India. Major car manufacturers The major car manufacturers in India are Maruti Udyog, Hyundai Motors India Ltd., General Motors

Proving Defamation

4120 words - 17 pages Project, 12 AUG 2008. Web. 1 Oct 2012. <http://www.citmedialaw.org/legal-guide/defamation> "Eastern Shore Hyundai | Shawn Esfahani Court Case Battle." Eastern Shore Hyundai. Eastern Shore Hyundai, n.d. Web. 30 Sept. 2012. <http://www.easternshorehyundai.com/>. "Eastern Shore Toyota." . Eastern Shore Toyota, n.d. Web. 1 Oct 2012. <http://www.easternshoretoyota.com/community-events/event-press-releases/shawn-esfahani-court-case

Ford Motor Company Case Analysis

5581 words - 23 pages Honda Motor Co., Ltd. Nissan Motor Co., Ltd. Toyota Motor Corporation Volkswagen AG Fiat Chrysler Automobiles Hyundai-Kia Automotive Group Key Products: Sedan Cars | Utility Vehicles | Retail Financing | Hatchbacks | Vehicle Accessories | Wholesale Financing | Trucks | Parts and Accessories | Their-party Claim Management | Buses | Vehicle Maintenance | Vehicle Insurance | Vans | Vehicle Repair | | Ford differentiates itself

Classifications of Automobile

4362 words - 18 pages % 10% 15% 20% 25% Manuf act uring IT/Telecom Banking/Finance Government Energy Educat ion Small of f ice/Home Source: Cygnus Research Chart-6: Sector-wise usage of IT in India 8 Best Practices / Case Study Success story of Mahindra and Mahindra Mahindra and Mahindra (M&M), is one of the largest private sector companies in India, under the flagship of Mahindra Group. M&M Farm equipment unit is one of the major two operating

Halo Evolutions

2198 words - 9 pages Impossible Life and Possible Death of Preston J. Cole" examines his life from a very unique perspective that of a case study, a report about the man himself. From his childhood to his possible death, Cole's entire life, his successes, his ambitions, and his failures are laid bare, showing what they've meant to humanity and how they've shaped our species. The last full tale in this collection is entitled "The Return" written by Kevin Grace, and

The Gender Trap

1951 words - 8 pages Kia Villarreal “The Gender Trap” Book Review California State University, Bakersfield Kristen Gibson October 14, 2015 Gender issues have recently hit the surface pretty hard and has made life changing impacts, nationally. Some political topics have been on same-sex marriage and restrooms for transgendered students. The nation is divided in regards to gender issues. The recent awareness has forced the government to step in and back up

Scorpio Case Study

1854 words - 8 pages CASE STUDY THE MAKING OF SCORPIO Rajesh Jejurikar A group of young managers working in a cross-functional team seven years back had a critical objective. To evolve the new generation product for Mahindra. They needed to anticipate customer trends, emerging competition and determine the Mahindra response. The ability to have foresight is a key success factor in the automotive industry. The team came up with a concept of what they thought

Drainflow Case Study

3302 words - 14 pages Kia Allen CASE 2: REPAIRING JOBS THAT FAIL TO SATISFY INTRODUCTION DrainFlow is a major plumbing maintenance firm who specializes in both residential and commercial services. For decades, DrainFlow has operated around the United States, using their specialization strategy to stay ahead of its competitors. Although DrainFlow’s specialization strategy has helped reduce its costs, customer complaints have been rising. Often, the customer

Corporate Sustainability

5201 words - 21 pages : Changes in the global economy (rise of emerging markets, demographic shifts, technological advances, etc.) heighten the importance of sustainability practices that increase organisational resilience and ensure companies’ long-term competitiveness. Adoption of Corporate Sustainability   Adoption of corporate sustainability varies significantly by industry. A new study by MIT Sloan Management Review (Knut Balagopal et al, “The Second Annual

Project Management

5647 words - 23 pages health status between Maoris and nonMaoris in the case of certain specific conditions, they do not play a major role in population and public health terms. Nongenetic explanations for differences in health between Maoris and non-Maoris can be grouped into 4 major areas focusing on socioeconomic factors, lifestyle factors, access to health care, and discrimination. These explanations are not mutually exclusive, but it is useful to consider them

Related Papers

Thomas Kilmann Essay

1569 words - 7 pages Corp the world’s largest supplier of microprocessors and chipsets reportedly plans to delay commercial launch of its new P45 core-logic due to compatibility issues with graphics cards. Intel Corp didn’t not report the problem to the public or repair it. Intel P45 chipset supports various microprocessors by Intel Corp with other processor system”. (Shilov, 2008) 3.5 Accommodating Component When Hyundai Motor Co rescued Kia Motors Corp at the

Labor Dispute Essay

2205 words - 9 pages , resolving disputes that had been going on longer than what have been expected and led to partial strikes (Brecorder 2014). The strikes last for 3 weeks by more than 47,000 workers that stopped working and resulted in prevented production of 17,000 cars that worth almost 315 million USD. Hyundai ranked fifth biggest automaker industry, together with Kia Motors, has been hit by labor strikes these past 4 years in 27 years industry of no strike. The

Automotive Industry Essay

3118 words - 13 pages its centre in Russelsheim. As a consequence, Opel again puts emphasis on sightseeing of the production lines and car delivery, which stresses a product-focused positioning. Emerging brands with low brand image and market strength such as Hyundai, Kia or Daihatsu in Europe are a special case. The brand management strategy of these OEMs should first of all focus on increasing brand awareness before considering product- or emotion-focused

5 Forces Toyota Essay

1914 words - 8 pages higher level of bargaining power. For each question, be sure to note the factors that lead you to either a “yes” or “no” answer and the likely strength or impact of these factors. | Yes (+) | No (-) | 1. Are there a large number of buyers relative to the number of firms in the industry? Domestically there are millions of buyers but there are very few major auto-manufacturers (Honda, Ford, GM, Chrysler, Dodge, Hyundai, Kia) | Yes