Filed under: Hyundai, Kia, Earnings/Financials
Hyunda, Kia roll back 2006 sales target
Citing summer strikes and weak domestic demand, Hyundai announced that it has cut its 2006 sales projections by up to 6% for Hyundai and Kia. This despite the fact that September sales were up 23% compared to August figures. Hyundai vice chairman and CEO Kim Dong-jin said that he expects 2007 sales to rebound, but didn't provide additional information. Kim explained that the group slightly changed its business plan when they experienced strikes during the summer: "Late last year, we set our 2006 production target at 4.1 million. However, we reduced our production or sales volume down to 3.85 million because of labor disputes." Analysts have said they expect Hyundai to achieve higher sales thanks to lower oil prices next year, despite weak domestic demand during the economic slowdown in Asia's third-largest economy, and because of consumers' possible negative reaction to North Korea's nuclear tests. "In 2007, sales are expected to be slightly higher than this year, but I don't see a sharp turnaround as the global economy may deteriorate," said CJ Investment auto analyst, Choi Dae-sik.
In related news, fellow Korean automaker GM Daewoo said it expected growth to slow from 38 percent so far this year, to 12.5 percent next year, as the impact of new product launches wears off.
[Source: Reuters]
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Reader Comments (Page 1 of 2)
scary 4:45PM (10/12/2006)
Buying a Kia/Hyundai knowing that the profits from the sale go back to Korea...scary
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Claud 5:21PM (10/12/2006)
I just got rid of a Tiburon......What a piece of junk. It was practically disintegrating before my eyes, paint and mechanically. It wasn't flogged about or abused.
I will never buy or recommend anyone do so again.
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Corey W. 5:51PM (10/12/2006)
I did rent a Kia minivan a few months ago, now that was "scary"!! The interior was ok, nothing falling apart or questionable build quality, but the handling and gas mileage was crappy. Seems like their expectations were high, especially since they think their direct competition is Honda and Toyota.
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Brian W 6:07PM (10/12/2006)
Or maybe there US models didn't sustain the sales like they thought they would even with rebates.
They are still a far cry from Toyota.
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Bob 6:43PM (10/12/2006)
#1, if you're implying this money is going to Kim Jong Il, I suggest you learn the difference between North and South Korea. They're separate nations, moron.
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Tom Miller 7:15PM (10/12/2006)
When the major car magazines say that the Sonata is so close to being comparable to Accord/Camry that the average driver couldn't tell the difference, I'm surprised at the above comments.
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Paul 9:07PM (10/12/2006)
LOL. You haters having fun yet? I bet you these guys have never even driven a Hyundai or Kia. They don't realize how many very positive reviews, awards and accolades their cars are receiving in every area. Their sales growth in Europe, North America, and Asia is testamont to the quality of their cars. Word is getting around that the word Hyundai and Kia are synonymous with quality.
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J. Johnson 9:45PM (10/12/2006)
Those haters are on autoblog 247 and write the same dumbass comments everytime a new article comes out. Basically what I'm saying is these losers are [just] writing stupid remarks on autoblog.
Staying on topic, I love the new Hyundai models, especially the Azera and Santa Fe. As an Azera owner, I love how the a/c has a sensor for "bad" air and automatically shuts off the vent when you're going through dust, smog, and exhaust fumes. The engine itself is the prize of the vehicle. It's extremely powerful and capable. I drove from LA to Detroit and went through the CO Rockies going up the mountain roads at 80 mph while others were struggling to climb at 25 mph. The acceleration is smooth and 0-60 is at 6 seconds, the same as a G35 and TL.
If the veracruz has the Azera engine, you can bet that it'll be a winner and consumers won't be disappointed. Just look at the testimonials from owners and look at every quality and satisfaction award Hyundai has won.
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Ryan 10:28PM (10/12/2006)
The question is if there will be a Hyundai or Kia left if N. Korea goes "postal"?
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aaron 11:16PM (10/12/2006)
It would seem that the person who rented a minivan (Kia or otherwise) hoping for great handling and gas mileage probably is either unfamiliar with the concept of a minivan or is a little thick. The if its Korean its crap schtik is getting pretty old. While I have seen plenty of the new Accents in Canada I have to say based on sales figures it doesn't appear to be doing a lot of damage in the US but this may be a reflection of reduced availibility.
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Hultar 12:06AM (10/13/2006)
#10 wins the prize. it was mentioned in various news forums about a week ago that sales were down(just like this article mentioned) due to 1) Strikes at Hyundai, and 2) due to that, they lost sales(sme people are ready to buy a car Now, not 2-3 weeks from now). 3)
Poster 9)
Ummm... Japan is near by, too, and have been threatened...so..... what's the problem?
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Hanryu_Star 12:17AM (10/13/2006)
These losers always comparing with a car not even of their nationality in order to bash. Simply because they don't want to admit.
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Lee 12:40AM (10/13/2006)
...OR, maybe some people who've driven/owned Hyundai's are still unimpressed. Is this wrong? Is EVERYONE supposed to love Hyundai?
Nobody is an idiot simply because they aren't convinced that Hyundai builds a good car. The word of an auto journalist is also subject to scrutiny. There are plenty of lame auto journalists.
Additionally, disliking Hyundai's cars does not inheriently say anything about Korea or all Korean cars.
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Colin Green 2:34AM (10/13/2006)
LOL.. LOOK at the comments above. Do they seem justified and sound? Or do they stem from bias?
No one minds constructive and objective critism, but mindless comments like, "Hyundai sucks", "this car copied X" and "Hyundai is part of North Korea" really disgusts me.
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menice 9:18AM (10/13/2006)
I have owned chevy/ford/toyota/dodge and two hyundai's
A 2003 tiburon..best car I ever owned...someone plowed into me doing 60. after that
bought an 2004 tiburon, again, this is the best car I ever owned, reliability wise, comfort and satisfaction...
after I get rid of the hugest POS Dodge Caravan we own, I will be buying the safest vehicle tested...the hyundai Entourage.
hyundai has been making cars for the US since 1986, growning futher and faster then any car manufacturer has. more bang for the buck, qualtity wise, and saftey.
THE BIG THREE dont even have air bags for the 3rd row in there vans for 33K!! Hyundai/Kia has full side curtains standard!!!21K.
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menice 9:24AM (10/13/2006)
by the way i t-boned my 2003 tiburon into a 1998 buick.
$15,800 for a new car with 4 air bags that saved my life. (the v6 and style are a plus....cant get that from the you know who's!
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Dieter 12:23PM (10/13/2006)
As an '04 Elantra and '05 Sportage owner, my wife and I can't be pleased more with the quality of these vehicles. They replaced a (reliable? - gulp!) '96 Corolla and (truly horrible '99 Passat). All auto manufacturers have a "bad apple" in the bunch now and then, even those models touted to be so reliable (i.e. Corolla). Sure, some Hyundai/Kia - esp. older - have had some "bad apples" in the bunch. But overall, Hyundai/Kia doing it's part to better their vehicles will hopefully inspire all auto manufacturers to continue to better their vehicles - making one brand pretty much the same as another brand for reliability.
Now that this has been said, I wonder what Kim Jong-Il drives? Hyundai or Kia, perhaps?
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Corey W. 12:23PM (10/13/2006)
aaron,
Who said anything about "great" handling?!?! I said it was "scary". I've driven U-Haul trucks that handled better. Try increasing your range of experience with different class vehicles before you question someone else.
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MadDetroier 2:29PM (10/13/2006)
Yes but Bob, South Korea gives tons of "humanitarian aid" to North Korea. Why would anyone give money to a so-called friend who supports the enemy?
KIA - Keep It in Asia!
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Brian P 6:05PM (10/13/2006)
Feeding starving people is giving money to the enemy? You are the biggest bigot I have ever seen. Please do some self-reflection.
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