Hyundai, Kia been accused of dumping practices in France

Article by Christian Andrei, on August 30, 2012

French Industry Minister Arnaud Montebourg said that Hyundai and Kia’s dumping tactic harms domestic automakers such as Renault and PSA/Peugeot-Citroen, whose sales and market share in France have declined. Montebourg is asking the European Commission to probe whether Hyundai Group’s strategy in France and Europe is legal according to the terms of a trade agreement between the European Union and South Korea.

Montebourg said that the prices of Hyundai Group’s models are below market value, unfairly increasing their market share in France and in Europe. France is the first member in the EU to submit a petition to the European Commission to determine if the practices of a South Korean company fall within the terms of the trade agreement.

During a French Socialist Party meeting last Friday, Montebourg said that Hyundai and Kia’s dumping tactic is “unacceptable” and is tantamount to unfair competition against French carmakers. The sales of PSA and Renault have fallen this year in France while Hyundai and Kia have achieved double-digit growth in the market.

French auto association CCFA said that Hyundai Group sales in France rose 30% to 36,328 units from January through July. Meanwhile, PSA’s sales dropped by 20% to 367,542 units and Renault’s volume decreased by 18% to 272,722 units during the same period.

A Hyundai Europe spokesman denied the accusation of the French minister, saying that the average price discount carmakers in the EU gave during the first half of 2012 was 2,137 euros. But then, Hyundai's price incentive was 88% of that average, or 1,870 euros. [source: Automotive News - sub. required]

Topics: hyundai, kia, france

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

In the minivan segment, the 2017 Chrysler Pacifica is already impressive in terms of fuel economy figures – as rated by the United States Environmental Protection Agency. In fact, the...
by - December 2, 2016
Having a blacked-out Bentley Mulsanne Speed is already menacing by itself but by naming it as the Bamford X, it became all the more imposing. This model was made by...
by - December 2, 2016
We have good news for those who are waiting for the latest version of the Mazda CX-5 compact crossover. It was just unveiled in November at the 2016 Los Angeles...
by - December 2, 2016
Those familiar with racing know that Marco Wittmann’s win during the 2016 Deutsche Tourenwagen Masters held last May was noteworthy as it was his second title in four seasons. In...
by - December 2, 2016
Volvo has revealed that while its products are used by a number of police organizations around the world, it will be the Swedish police that will get the first chance...
by - December 2, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries