Korean Auto Industry Big Benefactor in Japan Crisis
Many auto enthusiasts remember Toyota entering the US market in the early to mid 1970's with spartan low-cost vehicles that gradually evolved over time into the worlds largest manufacturer. More recently we have seen Korean manufacturers coming along in a similar fashion. Over the last few years the offerings from Kia and Hyundai have moved upscale and are now direct competitors in the mid size and near-luxury segments. The recent disasters in Japan have offered the Korean brands opportunities that would have been unthinkable a few short weeks ago.
In the attached article from Bloomberg the impact of the parts shortages on Japan's manufactures is contrasted with the high demand and uninterrupted production of the Korean brands. Recent updates to the models in Kia and Hyundai showrooms has increased their popularity. Gas prices on the rise have also improved the outlook for smaller and more efficient vehicles, which both companies count as strengths. Combined with the inability of the Japanese manufacturers to recover quickly from the parts shortages, it has provided a window of opportunity for the Korean manufacturers.
Fleet managers with opportunities to look outside of American brands, this could be a fantastic opportunity to build new relationships and get into some of the economical Korean vehicles while they are aggressively seeking market share.
In the attached article from Bloomberg the impact of the parts shortages on Japan's manufactures is contrasted with the high demand and uninterrupted production of the Korean brands. Recent updates to the models in Kia and Hyundai showrooms has increased their popularity. Gas prices on the rise have also improved the outlook for smaller and more efficient vehicles, which both companies count as strengths. Combined with the inability of the Japanese manufacturers to recover quickly from the parts shortages, it has provided a window of opportunity for the Korean manufacturers.
Fleet managers with opportunities to look outside of American brands, this could be a fantastic opportunity to build new relationships and get into some of the economical Korean vehicles while they are aggressively seeking market share.
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