Autoblog

Even with thin inventories and growing demand, Hyundai not looking for second U.S. plant

Jeff Sabatini — Wed, 16 Nov 2011 11:31:00 EST

Filed under: Plants/Manufacturing, Hyundai, Earnings/Financials

Why is this man smiling? Well, it could be because hotcakes only wish they were selling as well as Hyundais. Or perhaps that grin says he knows something we don't - like when and where his company plans to build a second North American assembly plant.

Yet Hyundai CEO John Krafcik told reporters last week that the Korean-based automaker has no plans to expand its U.S. production, which is currently running at literally 110 percent. Hyundai Motor Manufacturing Alabama has the capacity to build 300,000 Elantra and Sonata models, a number that's been boosted by another 30,000 units this year by way of increased efficiencies. (Hyundai is also getting Sante Fe crossovers from corporate cousin Kia, which operates a plant in Georgia).

Despite the boost in production, Hyundai inventory levels dipped to an extremely low 21 days supply this summer, even as sales continued to grow. Hyundai has already blown past its 2010 numbers, and year-to-date sales are up 21 percent.

This leads Edmunds AutoObserver.com to conclude that it isn't necessarily buying Krafcik's no-new-factories line. "It seems inevitable Hyundai must address its stretched-to-the-max production," says the report, which predicts that Hyundai will announce a plan for U.S. expansion early next year.

Even with thin inventories and growing demand, Hyundai not looking for second U.S. plant originally appeared on Autoblog on Wed, 16 Nov 2011 11:31:00 EST. Please see our terms for use of feeds.

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Hyundai co-CEO Yang resigns for personal reasons

Zach Bowman — Fri, 30 Sep 2011 14:01:00 EST

Filed under: Hirings/Firings/Layoffs, Hyundai, South Korea

Automotive News is reporting that Hyundai Co-CEO Steve Yang has resigned his duties at the Korean automaker for personal reasons. Yang helped push Hyundai to become the sales powerhouse it is now by improving the company's image and carving out additional market share even in the midst of an industry-wide downturn.

Yang was responsible for both domestic and foreign operations, and AN reports that executives Kim Choong-hu and Kim Seung-tack will split Yang's duties moving forward. Yang helmed the automaker's day-to-day operations, and split CEO duties with two others, including chairman and founding family member Chung Mong-koo. A new CEO will be chosen by the company's board at a later date.

The 58-year-old Yang is stepping down due to health reasons, according to Automotive News. He will remain as an advisor. Yang was the less visible of the automaker's trio of CEOs, thanks in part to Chairman Chung's reputation as a stern leader who has been instrumental in raising his company's production standards.

Hyundai co-CEO Yang resigns for personal reasons originally appeared on Autoblog on Fri, 30 Sep 2011 14:01:00 EST. Please see our terms for use of feeds.

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Hyundai CEO downplays Corvette competitor, warns of CAFE loopholes

Jeff Glucker — Wed, 28 Sep 2011 10:00:00 EST

Filed under: Etc., Government/Legal, Hyundai

Like nearly every other automaker these days, Hyundai is keenly focused on bringing fuel-efficient vehicles to market. That apparently means the automaker doesn't currently see a need for a halo sportscar to compete with the likes of the Chevrolet Corvette, though it recognizes it would be an exciting addition to the lineup. Hyundai's North American CEO, John Krafcik tells Ward's Auto that even though such a model would would be a fun addition to the family, a range-topping sports car would also probably be a poor investment that wouldn't serve the brand properly.

Krafcik is clearly focused on building more fuel efficient machines, and he argues that vehicles like the new Veloster coupe can provide sort of reverse halo from the bottom-up, not unlike the way the CTS has been the star of the Cadillac lineup for some time. This strategy seems like a smart move ahead of the Corporate Average Fuel Economy requirements waiting just a few years down the road.

Every automaker has a reason to be concerned about CAFE, but as Krafcik points out in an interview with Ward's Auto, loopholes exist in the legal requirements that may allow car companies to switch up their product strategy without aggressively pursuing more fuel-efficient products. Larger vehicles are subject to less strict requirements, and Krafcik argues that some smaller vehicles will likely fall by the wayside as an unintended consequence. This sort of thinking could allow a few manufacturers to skirt around the more strict CAFE requirements. An example of this is the decline of the compact pickup truck, which has given way to the less-restricted full-size.

Hyundai CEO downplays Corvette competitor, warns of CAFE loopholes originally appeared on Autoblog on Wed, 28 Sep 2011 10:00:00 EST. Please see our terms for use of feeds.

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Krafcik named CEO of Hyundai America

Dan Roth — Wed, 26 Nov 2008 07:58:00 EST

Filed under: Hirings/Firings/Layoffs, Hyundai

Hyundai is once again shuffling the deck at its U.S. operation. Since 2003, four different backsides have sat in the CEO seat. Finbarr O'Neill, Bob Cosmai, Steve Wilhite, and Jon Eun Kim were not able to gain enough ground towards the brand's goal of selling 1 million units by 2010, so now it's time for John Krafcik to try his hand. Krafcik will move up from his VP of Product Development and Strategic Planning position where he helped shape Hyundai's most recent successes. He played a role ensuring the Genesis and Santa Fe would resonate with the American market, and his reward is the new title of acting President and CEO of the U.S. unit for Hyundai. In the past, individuals named as "acting" executives had the probationary title removed within just a few months. While Hyundai no longer thinks it will shift 1 million cars by 2010, Krafcik will try to keep the dealer body pleased with stable upper management and continuing to release world-class product at more reasonable prices than the competition.

[Source: Automotive News ,sub req'd]

Krafcik named CEO of Hyundai America originally appeared on Autoblog on Wed, 26 Nov 2008 07:58:00 EST. Please see our terms for use of feeds.

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