Why Are The Korean Automakers Doing So Well In Such Hard Times?

1. Closed domestic markets
2. Subsidies from Georgia
3. Low prices- low wages
4. Non-repairable sub assemblies.
5. No taxes to pay for defense, because the suckers in the US cover that.
6. Massive government aid during Asian debt crisis, that kept insanely poorly run company in business.

Launderdale driver,

Here's the facts.
1. Closed market? It is an open market charging the same tax rate whether it to be domestic or foreign. Its import tax rate is only 8% which is equivalent to that of EU. Korea wants to have FTA which gives tax free benefit to US automakers, but US congress is holding.The reason GM and Ford can't sell? Ask GM & Ford the real reason. You can see more BMW and Mercedes in Korea than the place you live.
2. Military support? Yes, there is 20,000 US soldiers in South Korea at this point. However, Korea is supporting 50%-60% of the cost. You may claim why not to get 100% out of it,but US army stays in Korea not just for Korea but also for US to maintain its power in East Asia and current cost share can't be said unfair.
South Korea spends 16% of its goverment income for defense every year and it is one of the highest rate in the world.
3. Cheap labor? Labor cost in Korea is not any longer cheaper than that of US. Average income for automaker workers in Korea is $60,000- $70,000 as of 2005. That is why Hyundai came to Alabama and Kia came to Georgia.

It is better to have real objective facts rather than your emotional facts when to claim something.

How dare you use facts! People might start to actually believe the truth...

Until at least 2000 market share of imports in Korea was about miserable 0,4 % , they probably had big import tax rate than, in 2007 it was 4,4% , still quite low.

http://www.autotradecouncil.org/Upload/Korea%20factsheet%20Sheet1.pdf

We have to see what are in 4.4%. Most of them are BMW, Mercedes, Audi and Lexus. Except these prestigious car, only Honda could name itself in the list. What % of car sold in the state is these prestigious badges?
The reason that other car makers are not selling well is that they don't come up with cars competitive enough to sell in Korean market in price, in performance, in service networks etc. Cars like Focus of Ford charges $30,000 in Korea , then who wants to buy that car if you can buy Elantra at $14,000?

It doesn't take a genius to figure this one out. The answer is, at least in Hyundai's case, better products, better quality, and some savy marketing. You can also throw in the demise of General Motors and Chrysler who can't seem to get their act together.

Cant say GM dosent have theri act together since they do make some of the most exciting cars today. Kia/Hyundia cars are boring and they only have the Genesis as a semi halo car and even it being one car cant make the company an exciting brand look at the G8, Solsctice, CTS, Malibu and the Enclave I just think people on this site dont look at the big picture.

Two words: Inferior goods.

I mean that in the economics sense, not the spies flame-war sense...

When you live in the basement there are only stairs going up.

Hyundai/Kia could have stayed in the basement, or could have dug basement level 2. But they haven't. What does this mean?
I think it's the Garbage 3 who are getting ready to dig basement level 5 that will have no stairway to basement level 4.

I generally don't know but maybe becouse of this:

http://www.autoblog.com/2009/04/13/hyundai-and-kia-use-fleet-sales-to-boost-numbers

"During the first quarter of 2009 alone, more than 33 percent of Hyundai's first quarter sales of 95,854 units were fleet related. Rental car sales represented nearly 35 percent of Kia's sales during the same period."

Wow you think you would be more knowledgable on the products themselves. GM Makes a fancy looking car that rates at the bottom of the reliabilty listings.

Maybe people are using the internet to see the power to surprise that is Hyundai/Kia. Compare the vehicles on edmunds.com or pretty much any site and you find a vehicle that comes with the same options as vehicles $2000-$3000 more but you get Top ten reliabilty for less than you can buy a domestic product for and look Kia is even opening new plants in the US to help produce jobs.

I have worked for Ford/Chevy now I work for Kia. And they are impressive in terms of the overall quality vs. the fords and chevy's I sold. Not to mention that I do not see my customers in for service for recall after recall and service issue after service issue anymore.

Because Koreans never stop running until they become No. 1, not just in the auto industry but for anything that has positive connotation.
They get mad and cannot fall asleep when others (especially the Japanese and the Chinese) are in front of them. They'll do anything to reach that No. 1 spot, whatever the time it takes. That is their nature.

Yes that is why they still buy the Chevy Aveo and Cobalt...or do they

David969:
"Toyota still makes a profit on each car they sell while the Koreans are selling at a loss"
Now is not true anymore:

Toyota operating loss may hit $5 bln in FY 09-10
From:ReutersApril 13, 2009

Toyota Motor Corp's operating loss could balloon to over 500 billion yen ($4.97 billion) in the year to March 2010, as the global economic crisis hits car sales, the Nikkei business daily said on Sunday without citing sources.

Sales of automobiles could tumble to about 6.5 million units during the current year, falling 7 million units for the first time in six years, Nikkei said.

A survey of 19 brokerages by Reuters Estimates has operating loss at the world's biggest automaker expanding to a median 550 billion yen in the current year, from an estimated 450 billion yen in the year ended last month.

Analysts say the outcome will depend on the exchange rate, the global vehicle demand and how much Toyota will be able to reduce its costs.

Source: http://autonews.gasgoo.com/auto-news/1009986/Toyota-operating-loss-may-hit-5-bln-in-FY-09-10.html

Hyundai makes alot of parts for other auto makers because they can make them cheaper. Hyundais bigest draw is still price and warranty.

What's a girls hatchback? When I think of an Accent its not any more manly than a Focus or a Yaris. I have owned many hatchbacks their yery practical. I'd take a Focus or a Rabbit(Golf) over an Accent.

Do you work or Hyundai or do you listen to people that sell Hyundais? I had the GM of a Hyundai dealership tell me that Hyundai owned Toyota. I hated when I sold Hyundais(about 5 years ago)because they were awful they have gotten better but I stil.l would not by one. My last Chrysler I sold at 193,000 miles and the only repairs I made were a starter and an EGR valve.