Hyundai has been making strides in the automotive industry. Initially Hyundai was considered a very cheap, unreliable, poor quality product. There super low price point kept them afloat and they then began spending in multiple areas.
Quality became the biggest concern for Chairman Chung Mong-koo after taking over in 2000. They then began spending in the elements of design, giving birth to the Sonata, and other well selling products.
In order to rebuild it’s reputation, Hyundai made the very difficult decision to include ten year or 100,000 mile warranties. The program effectively increased sales by over 5% in the American market.
The ideal Hyundai is currently pursuing is putting the luxury into their brand. Starting off on one end of the consumer spectrum and winding up on the other is a difficult task. Hyundai does have a great deal of strengths behind them to accomplish that goal.
For one, Hyundai’s improved quality and warranty program have done great things for their reputation in the United Sates.
Secondly, Hyundai has very few middle management figures and a dictator style corporate structure. The Chairman Mong-koo, gives the final say on everything personally, and what he says is taken as corporate law.
Despite their strengths, the problem comes to light when we look at consumer brand recognition, and brand positioning. How long will it take for people to stop seeing Hyundai and thinking, ‘cheap car’.
More people are now saying ‘they’ve come a long way’, or ‘Hyundai is actually a very good car now’. Unfortunately, those statements are a far cry from, “Hyundai is the new Lexus”, or “I don’t know if I should get a BMW or the new Hyundai”.
Hyundai has managed to stay a float and grow considerably. Increased quality, newer designs, and now taking on the luxury market, Hyundai may very well be the Lexus of tomorrow, or the BMW of 2020.
Check out some of the latest Hyundai vehicles using the new car tab here at AutoCricket.com