Today I read the article about the failure of Korean car export. (The article: https://www.sedaily.com/NewsView/1VF9DENCQH dated on 10th Feb. )
It is very contrasting with the article which states that Hyundai successfully presented in 2019 CES, North America show (the related article : https://news.joins.com/article/23292379 )
You can see more good articles and news about Hyundai car in Detroit Show here :
Total output of Korean Automobile is 4,029,000 units. It’s decreasing during current 3 years. Of course GM factory(in Goonsan) closure affected. But the experts say that there is a fundamental matter.
As you know, the biggest car producer is Hyundai/Kia Motor.
Although Hyundai is the leader of automotive industry in Korea, but Hyundai focused on increasing sales volume and it has not achieved innovation of technology and quality. Due to High-cost/low efficiency, it lost the price competitiveness. Additionally labor union strike also gave damage on competitiveness 60~80%.
Actually Hyundai invested USD 3,700 million for R&D. This amount is not even a half, comparing with Toyota(USD 9,500 mil.) , Volkswagen(USD14,800 mil.) , GM(USD14,800 mil.)
USD 3,700 million is about 2.8% among sales volume. It’s less than half of Volkswagen(5.7%).
The quality has not improved, plus the price will be increased because of increasing labor cost. The experts forecast that the total out put of 2019 will be less than 4 million units.