Knowledge@Wharton has an interesting article on why Hyundai is doing well. Good warranties, good quality, and payoff from risky maneuvers is positioning Hyundai well in the national market:
As American automakers struggle for survival, South Korea’s Hyundai Motor appears to be gaining on the pack with bold marketing and broad-based initiatives to improve quality. The company made a splash earlier this year when it unveiled its Hyundai Assurance program allowing customers to return a car if they lost a job. Competing automakers and other types of businesses soon followed with similar promises.
Years earlier, however, Hyundai had already begun to invest in new models and quality programs that have put the company on solid footing to profit from the current chaos in the global auto industry, according to Wharton faculty.
“There’s a sense that what Hyundai is doing on many fronts is working in terms of actually gaining some advantage during the crisis,” says Wharton management professor John Paul MacDuffie, who specializes in the automotive industry and is co-director of the International Motor Vehicle Program.
In 2008 — a brutal year for the auto business — Hyundai’s global unit sales rose 2%, lifting revenues by 5%. In the first three months of this year, the company’s global market share rose to 4.7%, compared to 4% a year earlier.
Hyundai is learning from its previous mistakes and coming out ahead. Its story is an excellent reminder that good business sense will still get you ahead, even in an environment full of messy bailouts.