Hyundai and Kia See Accelerating Car Sales in September

Hyundai EquusHyundai (HYMTF) and its stablemate Kia have been taking U.S. auto market share gradually, bit by bit, for more than two decades. Lately, though, those chunks have gotten bigger, as the low-priced, high-quality car firm has begun to poach more domestic sales from Japanese manufacturers. And the trend is accelerating. The South Korean car makers' sales are expected to surge almost 25% in September compared to the same month year ago, according to research firm Truecar.

Hyundai and Kia are projected to sell more than 95,000 cars and light trucks in the U.S. this month. That would put the duo ahead of Nissan (NSANY), which is expected to sell 89,000, and slightly ahead of Honda (HMC), which has been the Japanese value-car leader for years. Sales of Japanese cars have been limited due to production slowdowns caused by the earthquake in March.

Hyundai's and Kia's combined sales are moving within striking distance of Chrysler, the No. 3 U.S. car company, which is expected to sell 120,000 cars and light vehicles this month. If Truecar's projection is correct, Hyundai and Kia will have a 9.1% share of domestic sales, up from 8% in September 2010.

How are the South Korean manufacturers doing it? First, the company has earned a share of the quality image that was once Toyota's (TM) signature. Hyundai's flagship Equus luxury model recently won the J.D. Power award for large premium cars in the 2011 Automotive Performance, Execution and Layout category. The Hyundai Azera received the top award for best large car in the Ideal Vehicle Awards given by AutoPacific.

Hyundai has also been clever about how it markets its trade-in and warranty features. The firm's Assurance Trade-In Value Guarantee sets prices for cars traded in during the 24th to 48th months they're owned. The manufacturer also has a 10-year power train warranty. It is impossible to say what these programs cost the South Korean firm compared to warranty programs offered by their competition, but Hyundai/Kia is clearly willing to make such investments to keep gaining market share.

The domestic car market isn't growing as quickly as it was in the early part of the year, and several car companies cut their estimates for total domestic vehicles sales. Ford (F) recently dropped its forecast for U.S. 2011 sales to less than 13 million. But Hyundai/Kia continues to invest in efforts to earn market share now, so it will be positioned to capitalize when the U.S. auto sales rebound picks up speed again.


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dg1319

Ford, GM, Chrysler- all these companies have plant outside USA, be it Mexico,, Canada, China, so all the jobs go out there. Also the parts they use come in their high end product like Lincoln comes from mainly japan. Toyota, Honda, Nissan and Hyundai, Kia cars are built here in USA with 40% of USA manufactured parts. So go figure who is screwing USA economics. That makes DON a moron, check the facts you idiot.

September 28 2011 at 3:35 PM Report abuse +2 rate up rate down Reply
dg1319

xoxo

September 28 2011 at 3:30 PM Report abuse rate up rate down Reply
Salvatore

My wife and I both have Sante Fe's since they came out and have never had a problem with any of them my wife's current one has 110000 mi on it and my 07 87000 never ran better so guess we were just lucky with the 4 we bought so far.
Owned American all my life before this had to work a lot of overtime to keep them going hope that answers the question about why we no longer buy American.

September 28 2011 at 3:10 PM Report abuse +1 rate up rate down Reply
TREBAERS

YEP Like U Said, THIER JUNK PERIOD I Bought a 2011 Sorento & 2010 Reo All ready Got Rid Of The Sorento at 5000 Miles , My Wife Still Has Her Reo (JUNK) Been In The Shop 8x This Car Only Has 11,000 That cars Gone (Next When My Wife Gos On Vaction), When I Traded My Sorento in 4 A 2010 Suzuki Equator 4x4 Its Been In The Shop 4 The Same Thing 5x . Know Its Going Through Lemon Law .

September 28 2011 at 2:38 PM Report abuse rate up rate down Reply
odoey

People complain about "NO JOBS" yet they buy these foreign pices of doo-doo, by all sorts of items from China, India, pakistan, and every place other than American. The pay Union people recieve is returned to their respective communities, from home, furniture, clothes, food purchases. Let's not forget the monies earned by these foreign companies goes to their homeland, not ours!!!!

September 28 2011 at 2:36 PM Report abuse rate up rate down Reply
Your Momma

Low cost, high quality vehicles? Hyundia? KIA? Folks, I worked for Hyundia/KIA. Service technician. I can tell you there is absolutely no quality in these vehicles. They are priced cheap to sell fast. The people who buy these vehicles are expecting a Mercedes quality vehicle built on a KIA platform. You get what you pay for. The 10 year 100K warranty, youll use every bit of it. Unless you pop a timing belt outside your recommended schedule maintence. Then you eat the cost of the engine yourself. Beware the trannys grenade out of nowhere. TPMS(Tire Pressure Monitor System) constant failure. All electrical problems with no rhyme or reason. These vehicles have no resale value. You can purchase a Hyundia or KIA a couple model years old for practically nothing. Korean made garbage.What do you expect from a company who started off making bicycles?

September 28 2011 at 2:11 PM Report abuse rate up rate down Reply
1 reply to Your Momma's comment
zeth006

Nope. Resale values have risen dramatically especially since 2008. Check your numbers on the Sonata.

September 28 2011 at 6:34 PM Report abuse -1 rate up rate down Reply
Suncatcher

Having been a fleet manager in the Northeast for the #1 rental car company, I got to know which cars were very good and which were very bad - starting in the late 70's. Japanese cars took the US market because the were high quality, high mpg and well-priced. Chrysler had to be saved from extinction by Ford's Lee Iacocca. On any given day 40% of our Chrysler fleet was in the shop. (Our garagemen re-named them "Cripeslers). They were junky gas guzzlers - in a world ruled by OPEC and big oil. Remember the great oil shortages and sitting in lines for hours - for $3.00 of gas? Toyota and Honda took the lead and never looked back - until now.

Now South Korean Hyundai / KIA trotted out their high quality, high mpg, 10 year/100,000 mile warrantied, good looking cars and continues to take market share - from everyone, including the Japanese. In 2006 I bought my first foreign car - a used 2004 Kia Amanti (their biggest luxury model) with under 20,000 miles. I paid $14,000. It is loaded and a great handling car. In 7 model years nothing major has broken down on it. People stop me all the time to ask what I am driving, "It's gorgeous."

I went foreign after buying domestic for over 35 years. My last US car, a 1988 Buick, I literally rebuilt from the ground up. I bought it for $24,000 new and spent at least $20K in repairs over the 20 years I owned it. (Like a bad relationship, I had way too much into it to walk away and had to drive it until it finally breathed its last). I owned it only 3 months before its first recall (seat belts). Then GM tried to screw me in the first year telling me the rack & pinion "had to be replaced on a regular basis." Huh? They wanted $700 to do so. A brief talk with the dealer's owner about the great probablilty that he had a Bulletin from GM and the warranty or a recall should cause no out of pocket expense on my part got him to replace the faulty rack & pinion on his own dime. But how many unsuspecting Buick owners got screwed? That was my first - and last - GM product. Prior to that, I owned Fords and Chryslers - both of which earned their horrid quality reputations.

It's great seeing Chrysler and GM now trying to put out a quality product. It appears that Ford may have gotten the quality bug too and is selling some nice vehicles now. Maybe I'll reconsider a domestic car in 2 or 3 model years. Till then, I am going with any company that takes pride in their product - and is confident enough to back it up with the best warranty in the business (3 times the duration offered by US manufacturers).

September 28 2011 at 1:05 PM Report abuse rate up rate down Reply
2 replies to Suncatcher's comment
tmachine2

Nice excuse to buy foreign, but it is still killing jobs to feed your consumeristic desires.

September 28 2011 at 1:09 PM Report abuse +1 rate up rate down Reply
1 reply to tmachine2's comment
tmachine2

dark,

It's true. American consumers don't have a sense of patriotism or nationalism anymore. It's all about perceptions and themselves. In this country, perception is reality. I owned 2 foreign cars in my day, one was a Hyundai and one was a Honda. Both were used and pieces of Sh!t. My brother owned a few, and they were all money pits. I've owned 9 new GM vehicles in my life, and I have had tremendous luck with them. I am not contributing to the demise of the Big 3. I know how important they are for economic and national security. I know my history.

September 28 2011 at 1:18 PM Report abuse +2 rate up rate down
odoey

I worked for GM for over 35yrs. I purchased what I built, Buick, Pontiac, Oldsmobile, and a Cadillac, I have NEVER had the first problem with any vehicle I owned. As far as these foreign car companies go, GM, Ford, Chrysler, all, were in partnership with many different Japanese ccar co. as well as other foreign makers. I loved all my vehicles over the years and maintained them well.

September 28 2011 at 2:44 PM Report abuse rate up rate down Reply
lexusisf250

Each of the domestic big 3 is planning on opening more plant in Mexico in the coming year.

September 28 2011 at 12:51 PM Report abuse -1 rate up rate down Reply
2 replies to lexusisf250's comment
tmachine2

They have also reopened U.S plants

September 28 2011 at 12:57 PM Report abuse +3 rate up rate down Reply
Your Momma

Wrong GM wants to open a plant in China. GM for the last decade has always had plants in Mexico. Look for the #3 in the first digit of your VIN. #3=Mexico. #1=USA

September 28 2011 at 2:17 PM Report abuse rate up rate down Reply
krazzicraig

What one just has to love about this artical is just where Hyundia is located. . They import everything . They have peopel on their north boarded that want to kill them . So how did they become so big. Simplily put ,OUR TAX DOLLARS. The cold war fears .

September 28 2011 at 12:49 PM Report abuse rate up rate down Reply
lexusisf250

80% of the parts from my Toyota camry is made in America and it assembled here while most GM , Ford and Chrysler are assemble in Mexico or Canada. so whose unpatriotic ?

September 28 2011 at 12:49 PM Report abuse rate up rate down Reply
4 replies to lexusisf250's comment