Hyundai is outselling Holden in 2015 - Page 3

**DFB FGXR6** · 03-09-2015, 06:37 PM

Quote:

Originally Posted by Yellow_Festiva

Don't assume low unit cost means low profit either. Take a look at how Domino's pizza is doing financially and you may be very surprised, even though their bread and butter sellers are $5 or $6 a pop.

That strategy is potentially working for Hyundai. I suppose what I'm trying to say is that Hyundai's strategy is too bombard the public with advertising,headline drive away prices and heavy fleet/rental sales but in the process have sell 4 times as many cars to make a profit.
Ford sales strategy was the same up until 18-24 months ago. Thing is, they no-longer have to keep a factory above water anymore and the "volume at all costs" (ie massive advertising dollars/low profit margin ect) is not something they want to a part of anymore....too much hassle. Granted, they do have image and quality control problem that have got to have affected sales as well as the change in sales tact.

**DFB FGXR6** · 03-09-2015, 06:44 PM

Quote:

Originally Posted by ebv8

just wait until Hyundai bring out their mid size dual cab ute. look out toyota

There would be no stopping Hyundai if they had a pick-up truck in the range and is something that the local executives have been screaming for.

Thing is, it would need the volume of the US market to make the investment worthwhile. It would also need to built in the US to avoid what they call the "chicken tax" which helps to protect the local pick-ups such as the F-150, and is the reason the current Ranger isn't imported into the US. Also explains why that Santa Cruise concept ute they showed in Detroit this year was based on the a car platform so as to be classified as a CUV/Crossover instead of a pick-up

ute83 · 03-09-2015, 06:45 PM

Quote:

Originally Posted by DFB FGXR6

When you look at it, Hyundai are going flat chat with discounting, incentives and massive advertising. The sales numbers are up for them, but at what cost? The money they burn in chasing bulk sales, is it giving them the profit?

Let's not forget that with every new car sold comes parts and service at the dealership. I believe that's where the money is these days.

naddis01 · 03-09-2015, 09:41 PM

Quote:

Originally Posted by vztrt

For commercial vehicles I don't think Hyundai would be a success quickly. Hilux's sell very well and they are quite mediocre.

Hyundai seem to do alright with the iload.

DanielXR8 · 04-09-2015, 07:59 AM

Quote:

Originally Posted by psychobimbo

How do you know that alarm bells are not ringing? Or are you just jumping to conclusions based upon your own experiences and expectations.

So, lets assume that alarm bells are ringing. What would you, as a member of the general public, expect to see from Ford? An ad saying we got it wrong? An immediate discount on the cars they have available to sell in this country? Flying in imported vehicles to ensure that supply issues are not the constraint?

I'm sorry, but if alarm bells are, or are not, ringing with Ford management, I doubt any of us would see any immediate changes. To rectify this situation is going to take a long time, not an instantaneous correction.

What I would expect is an annoucement that Ford Australia will be closing in 2016, along with manufacturing and a new business entity will be formed. This new entity will have a new dealer network and new hires for most of its positions. Existing warranties will be honoured, but the old Ford Australia is dead.

In other words, they need to start again with a clean sheet. Ford Australia is broken and nothing is fixing it.

vztrt · 04-09-2015, 09:43 AM

Quote:

Originally Posted by naddis01

Hyundai seem to do alright with the iload.

It does. But I still think its a tough sell against Hilux/Ranger. No doubt it will move numbers but be a bit player.

superfly · 04-09-2015, 06:12 PM

Quote:

Originally Posted by naddis01

Hyundai seem to do alright with the iload.

The cops use them and I've also noticed them using the i40 sedan. Maybe they'll stick with Hyundai once Toyota, Holden and Ford are no longer making cars in Australia.

DanielXR8 · 05-09-2015, 10:30 AM

Quote:

Originally Posted by DFB FGXR6

"volume at all costs" (ie massive advertising dollars/low profit margin ect) is not something they want to a part of anymore....too much hassle. Granted, they do have image and quality control problem that have got to have affected sales as well as the change in sales tact.

I guess that is one way of saying, they haven't got a customer base any more, so you might as well take those lemons and make lemonade.

The return the US seems to want from its Australian operation is a worry. Ford Aust seems to be trying to get more and more money out of less and less customers. I think they are on the tipping point with that strategy. Ford may not be the big volume seller these days, but that doesn't automatically make them a niche prestige brand in the public's eyes either.

Like GMH they are on the way to becoming a niche brand in Australia as the Japanese and Koreans squeeze them out of the pointy end of the market. I'm not convinced that was some grand plan from Ford, but simply the reality of a company that didn't treat its Australian market with the respect and attention it needed.

Crazy Dazz · 05-09-2015, 07:21 PM

It's no surprise about Hyundai, they are the new Toyota.
Their cars are horrible, but they suit the masses and are cheap, and quality/ warranty is now up to a very competitive level.

Ford is definitely going the "profit" route now. It's nolonger about selling as many cars as possible, its about maximising profit.
Take the new Focus, where they have dropped the "entry level" model. Problem is that when you only have one engine, and only a choice of auto or manual, is hard to differentiate and justify the premium price for the premium models. So they scrap the volume seller, and concentrate on the models that make them money.

Sprintey · 06-09-2015, 04:57 PM

Quote:

Originally Posted by DanielXR8

The return the US seems to want from its Australian operation is a worry. Ford Aust seems to be trying to get more and more money out of less and less customers. I think they are on the tipping point with that strategy. Ford may not be the big volume seller these days, but that doesn't automatically make them a niche prestige brand in the public's eyes either.

Nah it's cool. They will move HQ from Broady to Richmond and be surrounded by culture and hipsters and all the extra profit margin will pay the rent. What's not to like?

danzvtil · 06-09-2015, 08:13 PM

Quote:

Originally Posted by Wretched

When our $ was parity with the USD I didn't see much drop in car prices for imports.
Especially the high end cars, an M3 was and still is a 150k car.
I'd be intrigued to see if it does change.

Not technically true, when the $ was high car prices were dropping regularly, equipment levels were increasing. Car companies have to hedge against currency changes, as no customer would accept that a 20k corolla today would be worth 35k when the currency dives.

In 2013 Hyundai manufactured 4.7 MILLION cars worldwide, that gives them good scope to discount and still make a profit, something FOA doesn't have building an orphan in a ****ant country like Australia.

nstg8a · 06-09-2015, 08:36 PM

Quote:

Originally Posted by Yellow_Festiva

You want to head up to Korea some day (I'm back there in 2 weeks), no word of a lie 95% of ALL VEHICLES are home grown. Talk about brand loyalty.

Is it because of brand loyalty, or the high taxes imports attract?

Yellow_Festiva · 06-09-2015, 08:52 PM

Quote:

Originally Posted by nstg8a

Is it because of brand loyalty, or the high taxes imports attract?

I don't know to be honest. I'll try and find out when I'm there. I doubt transportation is an issue considering Japan is short boat trip and (I assume) they export more than they import so incoming shipping would be quite cheap.

However, Koreans are EXTREMELY patriotic and if you know their history will try their best to outdo the Japanese - meaning they go out of their way to support their own brands.

Toyota has already said that Hyundai is their greatest threat but the rivalry is based on a lot of bad blood between the two nations.

I'm not kidding, their mentality is one to be admired. From my observations it's almost frowned upon to buy a foreign brand.

Bossxr8 · 06-09-2015, 10:26 PM

I've read stories where the writer reckons the profit margin on most Hyundai's in less than $500 a car. No doubt they need to sell a lot of them just to make any form of profit.

malazn mafia · 07-09-2015, 12:01 AM

Quote:

Originally Posted by Yellow_Festiva

I don't know to be honest. I'll try and find out when I'm there. I doubt transportation is an issue considering Japan is short boat trip and (I assume) they export more than they import so incoming shipping would be quite cheap.

However, Koreans are EXTREMELY patriotic and if you know their history will try their best to outdo the Japanese - meaning they go out of their way to support their own brands.

Toyota has already said that Hyundai is their greatest threat but the rivalry is based on a lot of bad blood between the two nations.

I'm not kidding, their mentality is one to be admired. From my observations it's almost frowned upon to buy a foreign brand.

If Koreans are so patriotic, I wonder why Oppa Gangnam style featured a Mercedes surrounded by scantily clad, plastic surgery Korean girls in the video and not a Hyundai Veloster. The Veloster or Hyundai Exodus or whatever they call it would have been much more fitting...

Yellow_Festiva · 07-09-2015, 12:12 AM

Quote:

Originally Posted by malazn mafia

If Koreans are so patriotic, I wonder why Oppa Gangnam style featured a Mercedes surrounded by scantily clad, plastic surgery Korean girls in the video and not a Hyundai Veloster. The Veloster or Hyundai Exodus or whatever they call it would have been much more fitting...

Can't answer about the red Merc to be honest.

98% of Korean girls actually look and dress like that

Who cares what is more fitting, as long as the clip knocked that Bieber girl off number one I aint complaining

Yellow_Festiva · 07-09-2015, 12:24 AM

Interesting reading - from 2012 but still food for thought!

http://focus2move.com/south-korea-ca...avante-on-top/

Korean brands / affiliated brands made up around 83% of local sales - I didn't include Chevy but I wonder if there were GM / Daewoo badged cars in that additional 9.7% which would make local content well over 90%.

Actually, looking at the bottom of that list, it does seem that the Chevy models are locally built as well.

Is 93% of sales from locally built cars patriotic enough???

Where is Ford? Number 12 at ONLY .3% of sales... and not too far below Toyota at number 10 with only .6% of total sales.

How does the worlds biggest car manufacturer have such a low presence in a neighbouring country?

The irony is that I believe the first Hyundai sold locally (In Korea) was a badge engineered Cortina of all things!

Wretched · 07-09-2015, 11:18 AM

Quote:

Originally Posted by malazn mafia

If Koreans are so patriotic, I wonder why Oppa Gangnam style featured a Mercedes surrounded by scantily clad, plastic surgery Korean girls in the video and not a Hyundai Veloster. The Veloster or Hyundai Exodus or whatever they call it would have been much more fitting...

Cause it is a video clip and one being distributed world wide. It is all about marketing and image on a global scale. People globally can relate to Mercs as prestigious.

vztrt · 07-09-2015, 11:34 AM

Quote:

Originally Posted by malazn mafia

If Koreans are so patriotic, I wonder why Oppa Gangnam style featured a Mercedes surrounded by scantily clad, plastic surgery Korean girls in the video and not a Hyundai Veloster. The Veloster or Hyundai Exodus or whatever they call it would have been much more fitting...

Cause the song was taking the mickey out of people in a rich area. These people don't buy Korean.

Funny enough worked with a guy who's family owned a large heavy machinery dealer in Korea. They didn't have Korean cars (as in personal). The government doesn't like this as they're extremely protective of their industry. So tax audits seem to happen more to people who don't drive Korean....could be coincidence seeing as Korea put a 25% 'eduction tax' on the imports so one would say people who make more money would be looked at more.

nstg8a · 07-09-2015, 07:01 PM

Quote:

Originally Posted by Yellow_Festiva

.

98% of Korean girls actually look and dress like that

That's it, I'm moving to Korea.

mr smith · 09-09-2015, 08:58 PM

Quote:

Originally Posted by DanielXR8

I guess that is one way of saying, they haven't got a customer base any more, so you might as well take those lemons and make lemonade.

The return the US seems to want from its Australian operation is a worry. Ford Aust seems to be trying to get more and more money out of less and less customers. I think they are on the tipping point with that strategy. Ford may not be the big volume seller these days, but that doesn't automatically make them a niche prestige brand in the public's eyes either.

Like GMH they are on the way to becoming a niche brand in Australia as the Japanese and Koreans squeeze them out of the pointy end of the market. I'm not convinced that was some grand plan from Ford, but simply the reality of a company that didn't treat its Australian market with the respect and attention it needed.

Agreed , i think Ford and Holden will be in trouble soon. They sit in the dangerous middle ground. Not cheap and cheery like Hyundai but not premium like BMW or Mercedes.

mik · 10-09-2015, 11:53 AM

How times change, it would be interesting to be a fly on the wall in all the different car company board rooms, its been said before but maybe in the end there will just be one or two car company's.

Express · 10-09-2015, 05:14 PM

Quote:

Originally Posted by mik

How times change, it would be interesting to be a fly on the wall in all the different car company board rooms, its been said before but maybe in the end there will just be one or two car company's.

If you’re right I hope its Ferrari and Lamborghini.