The value of the US dollar
has taken a digger as of late, and the weakening of that currency relative to the Korean won has sent Hyundai into
full-on emergency mode. Since 76% of Hyundai’s business is in exports, and since a large portion of that is in the US,
this is quite a serious issue – the company currently faces a revenue decrease of over $1.5B and a profit drop of
about $800M for every 10% drop in the dollar’s value.
One of Hyundai’s analysts is calling for the expansion of
production at the company’s new Alabama facility, as this would decrease its sensitivity to fluctuating currency
exchange rates. As far as I can tell, though, it was not suggested that the US stop spending like a drunken sailor in
order to strengthen the dollar.
Thanks to reader Glenn for the tip!