Hyundai is transforming from a “value” brand to a “valuable” brand, CEO says
By Andrew, 12 Jan, 2012. 0 Comments
2013 Hyundai Genesis Coupe
Hyundai is turning into a major player in the global industry as it transforms from a "value" brand to a "valuable" brand, according to John Krafcik, CEO of Hyundai Motor America. He pointed out that in 2011, consumers were willing to pay 96% of a Hyundai vehicle's sticker price. But in 2009, this figure was 86%. He said that since 2009, the automaker has raised transaction prices by 14% but then, it maintained its reputation for value.
Hyundai reduced vehicle rebates to only 18% of its incentive spending in 2011, a significant drop from only three years ago. He revealed that about three years ago, the prevailing belief was that its dealers can’t sell a Hyundai unit if it didn’t have a “rebate on the hood.” He disputed a notion that Hyundai is an overnight success, saying that it took 25 years to achieve a 5.1% market share in the U.S.
Nevertheless, he said that Hyundai has “an awful lot of way to go” and that it has “big ambitions." Overall, U.S. market climbed 10% in 2011. In particular, Hyundai’s U.S. sales increased by 20% to 645,691 vehicles in 2011, including a 41% rise in Elantra sales and a 15% increase in Sonata sales. [source: AutoWeek]
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