The tragedy that has befallen the auto industry has left a surprising survivor in Hyundai.

Despite the near-collapse of the industry with top-ranked Toyota, Ford Motor, Honda, and Mercedes-Benz reeling from significant losses, Hyundai has emerged stable up to the present. It even garnered the fourth-highest overall rank behind Lexus, Porsche, and Cadillac in the J.D. Power and Associates quality survey.

South Korea-based Hyundai is the fifth largest automaker in the world and one of the Big Asian Four. According to New Jersey-based Autodata, Hyundai’s rivals Toyota and Honda posted sales declines by 39% and 34% respectively. Hyundai sales, on the other hand, are down only by 7.9%. It has edged on market share, as well, reaching 4.2% compared to 2.9% last year for the same period.

Quality Upgrade

Hyundai has been making better cars, observers point out. If in 2008, it posted 114 PP100, or 114 problems per 100 vehicles within 90 days of ownership, this year the statistic is down to 95 PP100. It has also succeeded in marketing its Hyundai Genesis mid-size sedan, which is desirable for its Lexus feel without the insignia.

Next step

Hyundai’s success is basically due to the fact that it understands its consumers. This is according to John Krafcik, head of the company’s U.S. unit.

The company launched a customer-sensitive Assurance Program to buffer the effects of recession on consumers. This program allows customers to return their Hyundai vehicles in case they lose their jobs one year from purchase.

The result is a positive image. Robert Passikoff of market research firm Brand Keys says Hyundai’s new strategy has dramatically changed people’s perception of the company. Passikoff points out that in the past, people used to refer to Hyundai as the “crappy cheap car.” Nowadays, however, consumers are singing a different tune and now identify Hyundai as a “buddy” who understands what life is all about for them.

Prospects for Hyundai are bright. In fact, Hyundai is geared up for more as it targets a 5% U.S. market share at year end.

Post Author: guest

This entry was posted on Wednesday, August 12th, 2009 at 3:09 pm and is filed under Corporate News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.