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Old 07-18-2012, 10:09 PM   #1
AR2
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Default Hyundai Barely Keeping Up With Demand

I saw this article and thought it was interesting. Apparently, Hyundais are in such demand that the company is cutting back on fleet sales so it can have more units available for retail sale.

http://www.autoblog.com/2012/07/16/h...cks-inventory/

Another interesting statistic is that Hyundai dealers have, on average, a 25-27 day supply of vehicles. Are the Hyundai dealers on this forum that inventory constrained? For the corporate office, this is a nice problem to have because it keeps fleets and incentives very low. The big drawback is that dealers may not be able to have the units they need to make a sale.

Just think if Hyundai started building more plants to boost production and opened more dealer points. Hyundai is already the 6th best selling brand in the U.S. ahead of Kia, Dodge, and Jeep.
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Old 07-20-2012, 02:49 PM   #2
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Are the Hyundai dealers on this forum that inventory constrained?
Inventory for both HMA (Hyundai) and KMA (Kia) has been tight for the past two model years.

Granted it is a nice problem to have (no overage units including demos) and have the gross well over $2k on the front PNVR, but missing deals due to lack of product on the ground hurts badly.

The opportunity is in the closed sale fleet cars from both HMA/KMA.
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Old 08-02-2012, 05:52 PM   #3
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It's interesting that Hyundai's CEO doesn't want to build a second plant in the U.S. To the extent Hyundai's plants are essentially maxed out on production that certainly limits their ability to increase their market share.

With all of the excess capacity that the U.S. had prior to the GM and Chrysler bankruptcies I'm surprised there's not an opportunity for Hyundai to lease a plant that's currently closed down in an effort to increase their sales volume.

I remember when Chrysler shifted the production of the M-Bodies (Diplomat, Gran Fury, Fifth Avenue) to an old AMC plant in Kenosha, WI because they had other plans for the M-Body assembly plant but there was still demand (and HUGE profits) for the M-Bodies.

The GM/Toyota plant (NUMMI) in Southern California is under-utilized but maybe Hyundai doesn't want to lease an old plant that has a history with the UAW?
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Old 08-03-2012, 06:48 AM   #4
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Hyundai builds in the U.S., GM builds in Mexico. Huh?
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Old 08-04-2012, 09:51 PM   #5
AR2
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Originally Posted by rd3311 View Post
Inventory for both HMA (Hyundai) and KMA (Kia) has been tight for the past two model years.

Granted it is a nice problem to have (no overage units including demos) and have the gross well over $2k on the front PNVR, but missing deals due to lack of product on the ground hurts badly.

The opportunity is in the closed sale fleet cars from both HMA/KMA.
Thanks for the information. Yes, not having inventory is going to hurt which is why I don't fully understand why Hyundai /Kia doesn't take advantage of the situtation to build more production now. It is quite apparent that demand for Hyundai/Kia is at an all-time high, why lose that momentum?

Regardless, it appears that Hyundai/Kia have hit the "big time" and are now a major force in the U.S. auto market. The question I'm waiting to be answered is, can Hyundai/Kia reach the sales level of Toyota? Can Hyundai/Kia join the Big 3 (GM, Ford, and Toyota) to form the Big 4?
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Old 08-05-2012, 09:42 PM   #6
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Hyundai builds in the U.S., GM builds in Mexico. Huh?
pretty simple...All the import manufacturers can build plants in the U.S. without any requirement to use union labor...either in the construction process or in the actual manufacturing process, while GM/Ford/Chrysler have to use union labor every step of the way. The media gives the import companies great PR and they are praised for their willingness to build plants and provide jobs in the US, while the media bemoans the sad state of the domestics brands who are losing market share to them. In fact, in addition to the labor cost advantage, most of the import plants receive hundreds of millions in federal and state tax abatements along with federal grants to relocate and train non union workers for the plants. The politicians then get on TV and express dismay that our domestics manufacturers aren't as competitive as they need to be.
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Old 08-06-2012, 09:51 AM   #7
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Originally Posted by DealerEx View Post
pretty simple...All the import manufacturers can build plants in the U.S. without any requirement to use union labor...either in the construction process or in the actual manufacturing process, while GM/Ford/Chrysler have to use union labor every step of the way. The media gives the import companies great PR and they are praised for their willingness to build plants and provide jobs in the US, while the media bemoans the sad state of the domestics brands who are losing market share to them. In fact, in addition to the labor cost advantage, most of the import plants receive hundreds of millions in federal and state tax abatements along with federal grants to relocate and train non union workers for the plants. The politicians then get on TV and express dismay that our domestics manufacturers aren't as competitive as they need to be.
You need to forward this to Mr Romney.... It would work well in a political speech....
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Old 08-06-2012, 01:03 PM   #8
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Originally Posted by DealerEx View Post
pretty simple...All the import manufacturers can build plants in the U.S. without any requirement to use union labor...either in the construction process or in the actual manufacturing process, while GM/Ford/Chrysler have to use union labor every step of the way. The media gives the import companies great PR and they are praised for their willingness to build plants and provide jobs in the US, while the media bemoans the sad state of the domestics brands who are losing market share to them. In fact, in addition to the labor cost advantage, most of the import plants receive hundreds of millions in federal and state tax abatements along with federal grants to relocate and train non union workers for the plants. The politicians then get on TV and express dismay that our domestics manufacturers aren't as competitive as they need to be.
One of the best posts I have ever seen on this site! Well written!
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Old 08-08-2012, 11:23 AM   #9
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One of the best posts I have ever seen on this site! Well written!
I agree.

DealerEx has a history of posting some great content on this forum and his post above is spot-on.

That said, I'm still not sure I believe that KIA doesn't have plans for additional capacity in North America. Given the current exchange rates building products in the U.S. and Canada is favorable and I'm sure that one of the non-union Southern states will offer KIA an attractive tax incentive to bring a new plant to their state.

With speculation that KIA and Hyundai will break into the pickup market I think it's just a matter of time before we hear about some plans for additional assembly plants in North America.
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Old 08-09-2012, 09:59 PM   #10
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I know this won't be good news for most here, but I checked the July sales numbers and I noticed something that I don't think I've ever seen before. For the month of July, Hyundai outsold the combined sales efforts of Dodge AND Ram (62,021 vs. 60,028 if my numbers are correct). That means that the Hyundai brand outsold what used to be the full Dodge brand. I think everybody will remember it as Dodge car and Dodge truck.

I find this piece of information to be mind boggling and sad at the same time. Maybe this was an anomaly and "Dodge" will pass Hyundai again , but what if it is not? Dodge, at one time, was by far the largest and strongest brand of the former Chrysler Corporation.

Anyway, this is great news if you are a Hyundai fan. For the month of July, Hyundai was the 6th best selling automotive brand in the United States. It also accomplished this feat without a minivan and truck. What does that tell us?
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Old 08-10-2012, 09:36 AM   #11
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Originally Posted by AR2 View Post
I know this won't be good news for most here, but I checked the July sales numbers and I noticed something that I don't think I've ever seen before. For the month of July, Hyundai outsold the combined sales efforts of Dodge AND Ram (62,021 vs. 60,028 if my numbers are correct). That means that the Hyundai brand outsold what used to be the full Dodge brand. I think everybody will remember it as Dodge car and Dodge truck.

I find this piece of information to be mind boggling and sad at the same time. Maybe this was an anomaly and "Dodge" will pass Hyundai again , but what if it is not? Dodge, at one time, was by far the largest and strongest brand of the former Chrysler Corporation.

Anyway, this is great news if you are a Hyundai fan. For the month of July, Hyundai was the 6th best selling automotive brand in the United States. It also accomplished this feat without a minivan and truck. What does that tell us?
Sadly it is hardly a surprise. Look at the current Dodge line up:
1. Dart-great product but slow ramp up of mainstream models
2. Avenger-ranked 5th in a 3 horse race...200 is clobbering it and not competitive in the current hot marketplace. New model coming.
3. Charger-greatly improved upgrade in 2011 and the 8 speed really kicked it up a notch in 2012. Bottom line...market thinks Charger is a sports car but in truth it is a really good fullsize family car. I know it is heresy but in 2011 it should have been renamed to go along with the new upgrade. It just hasn't taken off.
4. Challenger- too big and heavy and outdated compared to Mustang and Camero. Decision needs to be made to sh** or get off the pot. Redo it or put it out to pasture.
5. Grand Caravan- For close to a year all we have heard is that it goes bye-bye and only T & C will go on. Now it appears T & C will become a new version of the old Pacifica (I'm sorry...Mercedes R-body) and Caravan will survive. Or will corporate minds change again.
6. Journey- One of the best vehicles nobody knows about. Went from just another vehicle to a very decent vehicle in 2011. Too heavy for a 4 cylinder, but the 6 makes it really nice. Only problem is it is stuck between Caravan and Cherokee...both sell better. Dodge also gives it little marketing support.
7. Durango-again fantastic upgrade in 2011 but why didn't they name it either Chrysler Aspen or Jeep anything? Isn't taken seriously in market because of past Durango quality issues. What a shame.
8. Ram- needs the 2013 update ASAP. While it has stayed competitive since the redo in 2008 with minor upgrades since, it needs a major refreshening. Early reports are they have hit a home run with new model. Time will tell.


Hyundai/Kia on the other hand is on a huge roll. New models/major refreshening come out it seems like every year. Quality, warranty, price and styling are all considered near best in class by reviewers, and, most of all, the car buying public.

It comes back to the simple equation for automotive success. Give the public what they want at a fair price, back it up with a good warranty at a margin that lets dealers make money= a winning product!

Last edited by chryslersrt8; 08-10-2012 at 09:41 AM. Reason: forgot Journey and Durango...shame on me
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Old 08-10-2012, 12:28 PM   #12
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Hyundai/Kia on the other hand is on a huge roll. New models/major refreshening come out it seems like every year. Quality, warranty, price and styling are all considered near best in class by reviewers, and, most of all, the car buying public.
HMA/KMA is actually nice to their dealers as well.. That alone is something unique amongst all the OEMs.
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