Hyundai and Kia have experienced phenomenal growth over the past few years, even as the rest of the auto industry was embroiled in an ugly downturn. In fact, 2011 was a terrific year for the Korean automaker, as sales jumped by double digits globally.

But while Hyundai/Kia has been on fire of late, Reuters reports that company officials feel that 2012 isn't likely to return the same gains. The automaker is reportedly looking for a still-impressive six percent sales growth in 2012. One reason for the somewhat conservative expectations is that the automaker is stretched thin on capacity, and Hyundai Group Chairman Chung Mong-koo (above) wants to concentrate on quality.

The markets weren't all that impressed with the Hyundai Group's announcement. Hyundai stock dropped by .9 percent, while Kia shares shrunk by .3 percent. That's not good for the portfolio, but if Hyundai and Kia can manage to improve product quality, then both investors and car buyers should be plenty impressed.


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    • 1 Second Ago
  • 22 Comments
      Robt
      • 3 Years Ago
      Fancy that - a company that puts long-term succes ahead of quarterly sales figures.
      Justin Campanale
      • 3 Years Ago
      The stocks don't matter. The basic rule of humb is: make good products, and they will come. H/K is already doing a great job so far. Now all they need to work on is design, better advertising, and they need to keep up the hard work, and they will come.
      fivesix7eight
      • 3 Years Ago
      This is a great move by Hyundai/Kia. High quality and reliable autos are a long-term investment. If done right they'll have generations of brand loyal customers like the bigger players in the auto industry.
        jj72
        • 3 Years Ago
        @fivesix7eight
        Agree with you 100%. Three of my employees and two of my clients have purchased Hyundai's in 2011. All of them had either Japanese, American or European cars. They all said the same thing when I asked them why they picked a Hyundai.......Value, Design, Improved Quality. All of them knew people that owned Hyundai's and had very little or no issues with them. That's what made their decision that much easier. I personally don't own a Hyundai but will consider it or a Kia for my next purchase.
      christopher glowacki
      • 3 Years Ago
      Big flipping deal on the stock price thing. Hyundai just needs to keep it's quality game up there and everything else will take care of itself. They have been doing a good job as of late, just keep that ball rolling.
      rmkensington
      • 3 Years Ago
      They might work on making their cars go straight down the road too.
      GoFaster58
      • 3 Years Ago
      Hyundai/Kia have some great vehicles with Kia having the best designs. When I'm ready to trade I will certainly look at Kia.
      Kim
      • 3 Years Ago
      Hyundai I droven for long time. It is best.
      ryan
      • 3 Years Ago
      Sounds like a good plan, this Hyundai hype wont last forever and once its done they need to have quality and reliable cars to keep customers.
      stclair5211
      • 3 Years Ago
      Seeing how the world economy is going to collapse this year I would say Hyundai is right to predict slower sales growth.
      Daniel D
      • 3 Years Ago
      The markets are never happy with a company taking the long view, which is why so many companies are a mess as they try and please their shareholders, at the expense of their current and future customers. Hyundai are doing the right thing. The US car companies would be well advised to watch and learn.
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