Why Can't Hyundai Keep up With Demand?

Growing pains are slowing Hyundai division's rise in the United States.

Because of production constraints in Korea and worldwide demand, U.S. dealers cannot get enough of the hot-selling three-door subcompact Accent.

Company executives are also concerned that the same problems may limit supplies of the redesigned Elantra compact, which went on sale this month, and the face-lifted Tiburon sports coupe, which goes on sale in December. The Accent, Elantra and Tiburon are built in Korea.

In addition, the Elantra and Accent are powered only by four-cylinder engines. The engines are in short supply, says John Krafcik, vice president of product and strategic planning for Hyundai Motor America.

At an Oct. 9 dealer meeting in Chicago, dealers were told it is unlikely that Hyundai division will sell 500,000 units as expected in the United States this year.



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Homer008 - 11/2/2006 11:02:22 AM

+1 Boost

1.3 billion Chinese market welcoming Hyundai with an open arms will cause this as I have predicted.

Hyundai need to bringdown VWs sold in China down to their knees ASAP IMO to create a stepping stone towards eastern Europe and dominate Entire European markets eventually in these car segments. First China and invade Europe and keep consistancy in the U.S.

Homer008 - 11/2/2006 11:15:35 AM

+1 Boost

This is another German Blunder. They seemed to completly lack any knowledge for what a 1.3 billion folks desire..and they been selling cars in China for awhile so there's no excuse in this agenda.

Who ever solve the Jig-Saw puzzle of what Ordinary customers in China desire and deliever it first will surely gain solid foothold first. VW and American Automanufactueres are still sketching with crayons and scratching their head at this time.

I wouldn't doubt for a minute that Japanese engineers, designers, marketers etc..have already been living and studying in places like India by eating curry sauce dinner pallate to gather all the data to complete this puzzle already.

You don't go into a battle not knowing your enemy.

Know your opponent's mindset, you have won the war even before battle has begun.

Take a look at Toyota! Many famous college probably either already has or will be teaching their method for business gurus, I won't be surprised.

quizz - 11/2/2006 12:14:17 PM

+2 Boost

Easy Solution: build more plants in the U.S. dedicated to the top selling models in the U.S. As BMW, Toyota, Honda and MB have done, so must Hyundai.