Hyundai owns five percent of the U.S. retail market share, but it's trying to maintain that number with razor-thin inventory levels. According to The Detroit Free Press, the situation has forced the automaker to cut back on fleet sales and pump out every vehicle it can from its Alabama assembly plant, which is prepping a third shift in the fall.

How constrained is Hyundai's vehicle supply? Looking at the traditional measure of dealer inventory in "days supply," Hyundai tracks absurdly low, at just 25-27 days, or less than one month's supply of vehicles, according to the report. The new 2012 Azera has just 12 days inventory available. The Freep says that despite its five-percent share, for every 1,000 vehicles sitting on all dealer lots across the U.S., only 25 are Hyundais. Yet the company still expects to sell 700,000 units this year, some 100,000 more than it did in 2011.

John Krafcik, Hyundai Motor America's president and CEO, has said consistently that despite rumors of a second U.S. assembly plant, his company has no current plans to build one. Hyundai's South Korean parent has capped global production this year to focus on quality.

"We're still the leanest company in the industry," Krafcik tells the newspaper.


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  • 30 Comments
      FRD
      • 2 Years Ago
      I bought a 2012 Elantra last September and my dealer had to steal it from another dealer to get it for me.
      Hazdaz
      • 2 Years Ago
      Any company that is willing to lose some sales, to increase quality deserves props.
      Jaybird248
      • 2 Years Ago
      Don't know what KIA is doing nationwide, but our South Florida dealers have plenty of cars and are pushing aggressively advertised deals to move them out.
      • 2 Years Ago
      [blocked]
      Jonathan Wayne
      • 2 Years Ago
      Test drove the new Azera last week and it is a downright fantastic car. Definitely considering getting one in September. It is even way better than the Genesis. At $37,000 fully loaded, I can't think of a better car out there for the money, many twice the money.
      Autoblogist
      • 2 Years Ago
      Still not a bad problem to have. Kudos to the CEO for not chasing one more dollar instead focusing on better quality at their current capacity.
      MJC
      • 2 Years Ago
      "Hyundai's South Korean parent has capped global production this year to focus on quality." This is a fantastic idea. The worst thing that could happen to Hyundai is to exploit their recent success and go back to making poor quality cars. Invest those profits in continuing what you're doing right...
      fcarlo17
      • 2 Years Ago
      "Hyundai's South Korean parent has capped global production this year to focus on quality." -- you got that right... Yes Hyundais are leaps and bounds better than they were a decade ago but quality-wise, they still have room to grow.
        Just Stuff
        • 2 Years Ago
        @fcarlo17
        Seeing all the recall notices from all the manufactures, it's not the only one.
        Just Stuff
        • 2 Years Ago
        @fcarlo17
        Seeing all the recall notices from all the manufactures, it's not the only one.
      • 2 Years Ago
      [blocked]
        jtav2002
        • 2 Years Ago
        Fully loaded anythings add up. You can option up a Focus or Cruze to close to $27k.
      Tanooki2003
      • 2 Years Ago
      This is actually a good problem to have, nonetheless it is still a problem. This is better than having GM's problem where they just can't seem to get rid of their excessive mundane inventory.
      Edward
      • 2 Years Ago
      If the Hyundai dealers seem to be fat, try to shop the equivalent vehicle from a not-as-happy Kia store. Deals await.
        Mark
        • 2 Years Ago
        @Edward
        Don't know where you get your info from, Edward, but Kia is having the same inventory problems. The only thing they're unhappy about is that they don't have more cars to sell. http://www.autoobserver.com/2011/06/japanese---and-korean---inventories-drop-most.html
        • 2 Years Ago
        @Edward
        [blocked]
      JEO
      • 2 Years Ago
      Laudable to focus on quality, but they need to address the inventory problem by adding shifts to production (which I understand they are doing).
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