Posted on 01/11/2006 5:06:44 AM PST by CarrotAndStick
Toyota Motor Corp, one of the world's most successful automakers, claims to be afraid of a lot of things: complacency, competition, and success itself.
But in the United States, rival Hyundai Motor Co may well be at the top of Toyota's list.
"We're worried about them," Yukitoshi Funo, chairman of Toyota Motor Sales USA, told reporters in Detroit this week.
"Our main competitors here are essentially Honda Motor Co Ltd, Nissan Motor Co Ltd and Hyundai, but Hyundai is the one we are very carefully watching," he said on the sidelines of the North American International Auto Show in Detroit.
South Korea's top automaker, until recently a target of jokes about broken-down parts, has dramatically raised its profile on the world stage with a benchmark study by research firm JD Power showing an improvement in quality to match the best Japanese brands.
Hyundai now sells far more cars than Volkswagen AG, Mazda Motor Corp and Subaru in the US.
It expects sales to rise more than 10 per cent this year to over 500,000 units, in an overall market that it reckons will shrink.
In 2005, Hyundai's sales fell 7.7 per cent to 418,615 units, giving it a market share of 2.5 per cent.
"The quality story is resonating," Bob Cosmai, Chief Executive Officer of Hyundai Motor America, said at the Detroit show.
"We're broadening the depth of our product line, and it's a great value story. When I joined the company at the end of 1990 we sold 90,000 cars, so we're making our presence really known."
Unveiling the remodelled Santa Fe sport utility vehicle at the show, Cosmai said its popular model would be priced "thousands of dollars" below a comparably equipped Toyota Highlander with six airbags, electronic stability control and other advanced safety features.
As Cosmai admits, Hyundai's path to success has been modelled closely on Toyota's strategy of striving for top quality and competitive prices, and appealing to a broad range of customers with wide-ranging cars.
That's what worries Toyota most.
"Honda and Nissan are also formidable rivals, but they have a distinct business approach and profile from us," Toyota's Funo said. "Hyundai, meanwhile, is essentially doing what we're doing."
But Funo added that Toyota would not and could not compete with Hyundai on prices, and would instead focus on building its brand and value.
"Our costs aren't as low as Hyundai's. We don't want to compete on their terms," he said.
His Hyundai counterpart, meanwhile, seemed to be adopting Toyota's characteristic modesty when asked how the South Korean company stacked up.
"I'm not sure anyone's a big threat to Toyota right now," Cosmai said.
"They're a very successful company," he said, adding that Hyundai benchmarked much of its processes and design characteristics around Toyota. "We have a long way to go."
"best students from every graduating class of the Korean engineering schools"
You can't be proud of a ( heavily subsidized ) bunch of engineers who take 20+ years to get it right.
I consider the S2000 a roadster. It only seats two. I'd like my convertible to have back seats, even if an adult can barely fit in the seat.
Toyota has had its problems, (oil sludge springs to mind) but they are still the leader and the Prius has been a major PR coup for them. I predict continued success.
I had the new Sonata for a week (I review cars, among other things). I liked it a lot. It may not be quite up to the standards of a Camry, but it's a heck of a lot more fun to drive and its quality is close enough that the $$ savings and longer warranty makes it a good deal.
Probably closer to the Accord in "fun to drive" but nicer looking than either Accord or Camry, IMNHO.
Cheers
Jim
My dad bought a Hyundai Elantra after having three Corollas that he loved. But as you say the Corolla priced itself out of his market.
He loves the Elantra.
Cheers
Jim
They're not there yet, especially in the department of engine NHV specific output and MPG, but they are getting closer.
The other hurdle they have to surmount is resale values.
Check out the Kia minivan. Hyundai owns Kia. Same warranty and same (if not better) quality. My wife and I both drive Kia Sorento's (their mid-size SUV). Her's is 2 years old and has been great. So great in fact that when I needed a new car I bought one myself about 6 months ago.
Agreed, but their progress has been amazing.
They also need to get the proper pronunciation of their name more prominently in the public's mind....
Cheers
Jim
Who is that hottie?
Re: your 321. My '03 Tiburon v6 is a healthy, economical speedster. The motors aren't bad, but the Porsch suspension parts, struts and clutch aren't built to take the 47,000 miles I drive a year. Brakes went at 80,000 miles, clutch at 78,000 and struts at 76,000. All my Rx-7's went up to 200,000 before replacement was needed.
Goody, if we pull our troops from Korea bet Hyundai could make good Tanks too.. maybe even Helos and personel carriers.. and with a nuclear capability would give North Korea something to think about.. Go KOREA, pull the/our troops, make TANKS...
Hyundai definately has improved their product immensely since the little boxy hatchback excel days.
They are going to be a big player if they keep on doing what they are doing.
Well honestly I personally fail to see the appeal of the Camary... its styling is a yawn, and its price is just too high.
If I need a family sedan, I can get one just as reliable for cheaper... or I can get one with more personality for the same of less as well. The Camary in my opinion is out of its market segment... too close in cost to the luxury brands, but not really a luxury vehicle, and too far above the cost of the utility brands for the added extras it gives.
And did I mention.. the styling is forget me always?
I agree. When I reviewed it I called it Vanilla, from a butterscotch fan.
I think in that class (of vehicles I've actually driven) I'd look at the Mazda 6 (especially the wagon), Sonata, and Accord.
Cheers
Jim
Koreans are touch MF's. Believe me, I know. You don't want them running American businesses. Too many lawsuits, if you catch my drift. That being said, look at LG (who I worked for). They entered the wireless market in 1999 and now, I believe they're one of, if not the leader, in wireless handsets. But working for them was another story. Everywhere I go now I see LG (Formerly Lucky Goldstar for those of you who didn't know)electronics and appliances everywhere. I have an LG DVD/VCR player I'm looking at right now. THey make excellent, low cost goods. They're the force to be reckened with along with the other Korean force, Samsung.
I think they announced a minivan at the Detroit Auto Show.
Hyndai will succeed as people realize that cars are perhaps the worst investment one can make and given the percentage of total after tax income people commit to their vehicle purchases people will eventually wnat better value.
I think they need to decide what they want the Camary today to be...
If they want it to compete with the luxury brands, spruce up the styling and features and keep the same price point or close.
If they want it to be a segment leader with broad appeal... figure out a way to bring that price point down.
I think Camary is sort of trapped, they don't want to downgrade, but if they upgrade too much it directly competes with their luxury brand... so its slowly becoming an overpriced bastard child.
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