Hyundai: The Only Major Car Brand To Grow In The U.S. This Year

Oct. 20, 2009:

NEW YORK (CNNMoney.com) -- In a year of unprecedented turmoil for the U.S. auto industry, one major car maker has emerged as a winner. And that company isn't based in Detroit, Japan or Europe.

South Korea's Hyundai Motor Group has gained significant ground against its more established rivals this year. In fact, the company, which has separate operations for its Hyundai and Kia brands in the U.S., is the only one to report sales growth this year.

Read the whole story: Oct. 20, 2009

Comments

[Itdoesnotmatter]

WASHINGTON (Reuters) - MOST U.S. and foreign corporations doing business in the United States avoid paying any federal income taxes, despite TRILLIONS of dollars worth of SALES, a government study released on Tuesday said.
The Government Accountability Office said 72 percent of all foreign corporations and about 57 percent of U.S. companies doing business in the United States paid no federal income taxes for at least one year between 1998 and 2005.

More than half of foreign companies and about 42 percent of U.S. companies paid no U.S. income taxes for two or more years in that period, the report said.

During that time corporate sales in the United States totaled $2.5 TRILLION, according to Democratic Sens. Carl Levin of Michigan and Byron Dorgan of North Dakota, who requested the GAO study.

The report did not name any companies. The GAO said corporations escaped paying federal income taxes for a variety of reasons including operating losses, tax credits and an ability to use transactions within the company to shift income to low tax countries.


Not only that these companies don't pay any taxes they move their oporations to other countries and ship their products back to the good old USA because americans will buy anthing. So where do we get the money so to keepkeep buying good old foreign made products? this country has been trained and turned into its own worst enemy.

[MikeDu]

Don't underestimate the power of selling a utilitarian vehicle for a few thousand less than your rival. There's a large fraction of the population that do not associate their means of transportaion with their social status. We don't need our cars to be rolling movie threaters or space ships. That was where American car manufacturers got into trouble. They figured could make more profit selling one $45,000 monster SUV than three $16,000 sedans. Hyundai/KIA filled the gap.

[truthbagger]

Mitsubishi, Nissan, Toyota and Subaru sell some cheap cars that will last forever and give decent ride quality. Unlike the cheap Korean brands which even if they have solved the build quality issues will not give a smooth ride compared to comparable Japanese models. Admittedly to get the Japanese brands as cheaply as the Korean brands you have to buy the basic "loss leader" listed in the Sunday paper.

[aspelling]

Competition is what made Hyundai and Kia outstanding.
They experiment, invest, get best talents around.

This is what Toyota and Honda used to be in early 90s until they became bit and lazy appliance manufacturers. Every time when a company outgrowth and becomes too big and well known to fiercely compete not in marketing but in product quality it fails. GM, Chrysler and Microsoft are good examples. Toyota and Honda are only supported by the perception of their value and it will take a decade to undo it.

I recommended to buy Hyundai to many people over other imports for the last five years and I don't know anybody who are unhappy with the quality and values of their cars.

[Mattie]

I saw a Kia the other day, I didn't know what it was at first, but it was a nice looking car. I however won't ever buy a car on looks again. I'm staying strictly with Honda. I made the biggest mistake of my life when I purchased a Nissan Altima because it looked nice. It is the absolute worst car I have ever owned, Nissan and in particular the Nissan dealership I went through are the most unethical company I have ever dealt with, it's been a nightmare. To fix my heating issue in my new car, they told me I should get myself a blanket, yes a blanket. I spent 26,000 on a car, and in order to keep from freezing to death in Minnesota in the winter, they said a blanket was the answer. They said no car is designed to heat during the winter here. I hope anyone considering buying a Nissan will reconsider and run for their lives, and protect their pocket book. Not to mention if you live somewhere cold you will freeze your but@ off.

[iplaw]

Lol, no heat in Minnesota? Is that why so many people are missing fingers and toes up there? Out in California Honda dealers used to be jerks because they could easily sell their inventories without any trouble. I am sure that has changed now that Cal has 13% unemployment. I find the worse the car, the nicer the dealer.

[liberalbug]

Honda still doesn't need to bargain, and it's for a very good reason. Their cars go and go and go.

[MilwaukeeDan]

Many here argue domestic vs import, but with todays multinational corporations, the lines are blurred big time. My mothers 2001 Chevy Impala was assembled in Canada, most Dodge trucks and PT Cruisers were not allowed to park on employee parking lots at the Chrysler plant in Kenosha because they were assembled in Mexico, and on and on.... By the way, the Impala needed tie rods at 13K, a drive axle at 39k and new steering linkage at 52k(last 2 not warranteed) and the low speed on the HVAC controls never worked. These are parts I have never had to replace this early(if ever) on any of the 18 cars we have owned. Her previous car, a 1989 Chevy Caprice Classic was diagnosed with a cracked cylinder head or blown head gasket at 56k when we dumped it. Live and learn, I guess.

[iplaw]

If that is true then US management sucks.

[SteveDenver]

I walked by a Hyundai Genesis Coupe and thought it was a Lexus. The owner let me sit in it and it is as well finished as anything I've seen lately (and my hobby is checking out new cars). GM and Ford aren't even in the game with this kind of workmanship, and the MSRP "loaded" is equivalent to base models of a lot of cars. Hyundai is a ferocious market contender.

[iplaw]

Beware getting into strangers cars for candy.

[mjeffn]

What...give up my Vega?

[iplaw]

As a child I was forced to share the back seat of a Vega with 2 other children and an obese woman during a 2000 mile journey. The horror, the horror.

[landoffreee]

For a more perfect unions we must have:

Jobs,job securi.ty, job benefits, universal pre school-K.12, housing, affordable college education affordable health are that doesn't ban.krupt sic.k families

good articles; http://ow.ly/dmzm

a better society is one that creates opportunity & while providing safety nets and welfare programs for disadvantaged

[tellie]

Toyota, Honda, Nissan and Mitsubishi are a few thousand more at purchase, but worth many thousands more in resale. That is where the most money is lost is by buying an off brand, you are throwing away thousands. Hyundai loses the most value when you try to sell it. I was in the business for years

[Mattie]

Nissan Altima, the worst car I have every owned, it's a piece of garbage, I can't believe it will be worth anything when I finally can get rid of it.

[AlabamianForObama]

The article fails to mention that Hyundai has a huge manufacturing campus here in Alabama. Americans build many of these "foreign cars"

[Patriot86]

BS on that. Korea takes no American cars while having complete access to our markets. The piddling assembly plant which only does final assembly by the way does not come close to making up for what buying Korean cars had done to the economy...Also, the receive all kinds of tax goodies from the State and from the feds (enterprise zone). We need to bring back American manufacturing and not allow any cars to be sold in this country if they have trade barriers-this would eliminate Japan and Korea by the way since they do have trade barriers against American cars. If you buy cars from foreign companies then you contribute to the loss of jobs and to the loss of a middle class...we can not sustain a middle class with low paying service jobs or a so called consumer driven economy Right now the bankers are 40 % of the economy thanks to crazy trading and profit from free trade...it is unsustainable.

[AlabamianForObama]

It is not BS that there is a plant here. I've seen it! It is real. Americans do work at the plant. Fair trade policies are a whole different issue from my point. Yes, I agree that if they have access to our markets then we should have access to theirs. Yes, I agree that the tax incentives to build plants in our country are shameful. Senator Shelby fully supports these goodies, but was totally opposed to helping Detroit. I have and will never vote for Sen. Shelby or Sen. Sessions!

PS - I am a loyal Ford buyer.

[1laingirl]

Don't forget our "American" car companies have plants all over the world and are multinational corporations, so you cannot be sure where the parts or cars are made. I think Ford is building a new plant in China.

[Patriot86]

The money still comes home... this is untrue with foreign car sales.

[jay1975]

The money from those plants goes to the big wigs here whereas the foreign manufactures operating in the US are employing US citizens thus making the money they earn more likely to be spent on the economy rather than being saved or sent offshore to avoid taxes.

[michmudder]

Indeed. Absolutely true.

[lvogt]

These are international corporations with stockholders all over the world.
There may be some marginal advantage to where their head office is located.
The idea that corporations belong to countries is obsolete.

[JScott]

Yup not surprising. At the OC autoshow they even are premiering an even more Luxo model than their
recently introduced Genesis---the Equus, kinda looks like it will be successful....watch out Lexus and MBZ.

[iplaw]

That is scary, these cars are garbage. Smart people will pay the extra $1k for a Japanese brand.

[Tropiholic]

garbage, really? how many of them have you owned and for how long? they offer a 100,000 mile warranty,if they were as bad as you say they would have been bankrupt like the american car companies but yet they are growing.

[iplaw]

Yeah, 100,000 mile warranty is a sure sign of low quality. GM started doing that back in the day (and GM was never as low quality as Hyundai). I had a 93 Hyundai Accent. Stupid me bought it without a test drive. It was apparent from the moment it started rolling that it was a cheap piece of garbage. Feels like driving a car made of tin foil. Engine seized at 30k miles.

[progressivegreg]

2002 Kia Rio! Replaced the brakes, that's it. Original battery, tires everything. It's been paid off for years and I drive it every day. Couldn't say the same for the Ford Taurus I traded in on the Kia!

[lvogt]

I like my Hyundai Sonata. It's a very good value. I wish they were coming out with an electric.

[jsarets]

Hyundai, Kia, and Daewoo wiped the floor with the competition in Britain's equivalent of cash for clunkers as well. People say they don't want cheap, generic, small cars, but when they walk into the showroom, it's a completely different story. That price tag looks awfully good.

[osusana]

I have a 2003 Hyundai Santa Fe that is probably the best car I ever owned, and my previous four cars were brand new Hondas of one model or another. I have not spent one penny on my Santa Fe other than standard maintenance, oil changes, etc. The factory installed tires lasted me for 47,000 miles, for crying out loud , and in six years I'm only on my second battery. The car handles beautifully, is extremely comfortable, and gets about 20 MPG. I will continue to own this car until the 10 year/100,000 mile warrantee wears out and then I will buy another.

[osusana]

Oh, and the last Detroit-made car I owned was a Corvair....and wasn't that a lovely ride....Aaarrghh!

[iplaw]

Who are you Ralph Nader? The Corvair was one of the best cars in the world in 1964, and I tried to flip one and I couldn't. Engineers hold a grudge against Nader's lies.

[1laingirl]

I agree with you. I have a 2001 Santa Fe and have been very happy with it. I haven't had any problems with it and have also incurred only the standard maintenance costs. If anyone thinks they don't make good cars I suggest they do some checking. Before I bought mine, I approached people in parking lots who had Santa Fes since the model was so new. Hyundai used to have a bad reputation many years ago, but their products stand on their on now.

[osusana]

My standard reply to people who dis the Hyundai because of its newness (not so much now that they're selling like hotcakes!) is to remind them of the days when we were surprised that Honda was making CARS in addition to motor bikes - remember the old commercial:"You meet the nicest people on a Honda" - ON a Honda, not IN a Honda.