Nothing Says ‘American’ Like A Happy Hyundai

Nothing Says ‘American’ Like A Hyundai?

by Hyundai in the News on October 25, 2010

Which automaker is the most ‘American?’ You might instinctively think of brands like Chevrolet or Ford. But the most American brand may soon become Hyundai.
By next year, the Korean automaker will manufacture 80 percent of the vehicles it sells in the United States domestically. That will be more than any other automaker. By comparison, General Motors says between 60 and 70 percent of vehicles sold in the United States are built here. Ford’s exact figures aren’t available, but it’s estimated to be below 80 percent as well.

“I’m going to build my three best selling cars in the U.S.,” said Hyundai Motor America chief John Krafcik. “Ford builds its best selling car in Mexico.”

Technically, a greater percentage of Hyundai’s lineup will soon be produced in the U.S. compared to the Big Three, but the numbers don’t paint the whole picture. The Big Three produce a far greater volume of cars in the U.S. than Hyundai. For example, if GM only built about 66% of the vehicles it sold in the U.S. domestically in 2009 that would mean that GM would have more than tripled the 400,000 cars Hyundai expects to build in the U.S. next year.
There are two reasons why foreign brands like Hyundai are eager to build in the U.S. For starters, it protects them against changes in the value of their own currency relative to the dollar. Secondly, it makes it easier to address rapid shifts in consumer demands. For example, if gas prices suddenly increase and more consumers demand Elantras over Sonatas, domestic factories can alter productive and deliveries to dealers quickly.