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Cruise Control: Hyundai's next big launch
Think the Veracruz is the biggest vehicle Hyundai's ever produced? Compared to an Accent, the crossover is colossal, but it could soon find itself shrinking in the shadow of something much, much bigger from the Korean company.
With a number of contracts coming up for grabs in 2009, Hyundai is anticipated to put in some potentially lucrative bids to build gigantic cruise ships. With profit margins approaching $4,000 per ton – some of the latest ships top over 150,000 tons – and Korean companies increasingly dominating the ship-building industry, Hyundai could stand to make big bucks on nautical construction...more than enough to finance the development of new cars that could continue the company's upward climb in the market.
Could be good times ahead and smooth sailing for Hyundai if they get a contract or two. Heck, Hyundai badges have appeared on far stranger things.[Source: NY Times Wheels]
Reader Comments (Page 1 of 1)
Viv 10:11PM (7/11/2007)
A profit margin of 150,000 X 4000???? Where do i sign up for some Hyundai stock?
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paul34 10:15PM (7/11/2007)
How much do they charge for starship construction?
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TP 10:20PM (7/11/2007)
Autoblog, are you sure this is the same Hyundai company that manufactures vehicles?
Hyundai Motors and Hyundai group are entirely separate.
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Korean 10:28PM (7/11/2007)
TP is right...
This Hyundai is the Hyundai Heavy Industries, the largest shipbuilding corporation on the planet. Hyundai Motor Company and Hyundai Heavy Industries used to be under the Hyundai Group wing, but they both fell out. The current Hyundai Group consists of Finance, Construction, Nautical (Commercial), Retail and Logistics divisions.
Among other companies, the second largest semiconductor manufacturer called Hynix also used to be a part of the Hyundai Group.
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I_Hate_China 10:47PM (7/11/2007)
The shipbuilder pictured is Hyundai Heavy Industries, which has nothing to do with Hyundai/Kia Automotive Group. Hyundai group founder's sons split their father's empire into three sub-groups after his death, and HHI is one of these three. The Hyundai Heavy Industries is already the world's biggest and most competitive shipyard(Toyota of shipbuilding industry), able to turn out everything from supertankers to submarines and Aegis cruisers, and even aircraft carriers if an order is placed. This is one of few Korean companies that is considered to be superior to its Japanese rivals.
Hyundai/Kia Automotive Group do not share that distinction, yet.
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Ken 11:15PM (7/11/2007)
Semi-unrelated.
I believe one of the Korean shipbuilders (might be Hyundai) actually has large ships IN STOCK FOR IMMEDIATE DELIVERY - as in, they have 500-1000' ships built, and in stock for someone who needs one (or a few) in a hurry.
Thats crazy.
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Chris 12:03AM (7/12/2007)
Checking with a couple different sources, you can find that the construction cost for the QM2 was around $800 million. The $700 million the NY Times suggests for profits is simply not possible. Also it's important to know that there's a difference between Gross Registered Tonnage (a measure of interal volume) and displacement (also measured in tons, but a measure of weight). A big ship like the QM2 displaces about 76,000 tons but her GRT is much much higher.
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bduddy 8:25PM (7/12/2007)
This isn't anything new-I see Hyundai ships on the register in the S.F. Chronicle all the time.
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DRC 12:19AM (7/12/2007)
The French and the Scandinavians still are years ahead of everyone else in building large cruise ships, but there's evidently a market for the Koreans...
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Ken 12:26AM (7/12/2007)
Yeah, in this industry, there is money to be made, but no insane profit margins. If you are commissioning a ship, you will shop everyone, and they will all nickle and dime each other down to probably what, 5-10% margins?
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HotRodzNKustoms 1:53AM (7/12/2007)
Hyundai has no shortage of cash lol
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