Hyundai looks to gain from US woes

Hyundai Motor Co, South Korea's biggest automaker, expects to benefit from the precarious state of the US economy as more consumers look for value propositions in their car purchase decisions, an executive with Hyundai's North American arm said.

"We studied American car-buying habits during these tough times and found that three out of 10 people indicated they would hold off buying a car, while another three out of 10 said they could change their choice to more value-oriented brands," John Krafcik, vice-president of product and strategic planning at Hyundai Motor North America, said in an interview at the North American International Auto Show.

"For our brand, because of our strong value proposition, it could provide a boost."

Krafcik on Sunday told reporters he wanted Hyundai to top 500,000 in US vehicles sales this year, up from 467,000 in 2007. On Monday, he said that Hyundai's working estimate of overall 2008 US car and light truck sales was 15.5 million, versus the 16.15 million sold in 2007.

Krafcik said that Hyundai saw its value appeal to US consumers would hold true for its first premium sports sedan, the Genesis, that was unveiled on Sunday at the show.

In line with Hyundai's strategy of offering more electronics and other features for less money, the Genesis would have more interior space than a BMW 7-series with the riding and handling of a mid-level BMW with pricing at the 3-series camp, Krafcik said.

"We expect buyers of our cars to have the same mindset as the people who bought the Lexus 18 years ago, when it first launched," he said, referring to Toyota Motor Corp's successful luxury brand.

While pricing for the Genesis has not been disclosed, Krafcik said it would be similar to a Veracruz crossover vehicle packed with all the bells and whistles, at around $40,000.

Agencies

(China Daily 01/16/2008 page16)