Hyundai-Kia duo is a big threat for carmakers

Article by Christian Andrei, on September 16, 2011

Hyundai and its affiliate Kia received much admiration for the models they displayed at the Frankfurt Motor Show. This is seen as a major turnaround for Korea’s two largest auto companies, which were criticized for their low-value models and their uninspired designs.

General Motors Europe President Nick Reilly said that in the past three to four years, Kia and Hyundai have caught up and have become a “very powerful company and a powerful competitor.”

In recent years, Hyundai and Kia have resolved their design and reliability problems and had performed extremely well even during the worldwide economic crisis. Meanwhile, Volkswagen executive Christian Klingler considers Hyundai-Kia as a “very serious competitor” due to their enhanced quality and sound design. According to experts, VW's sales head needs to pay close attention.

NordLB analyst Frank Schwope said that in the medium term, Hyundai will go up against VW for the recognition as the largest automaker in the world. He added that Hyundai-Kia had previously tested the poorest in all areas but what Kia offers now is pretty remarkable.

Customers get a seven-year warranty on its cars and its vehicles are considerably more affordable than rival models built by German or Japanese automakers. He added that Kia is now at the point that the Japanese automakers were “15 or 20 years ago.”

Topics: hyundai, kia

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