Hyundai Ready to Emerge as an Industry Leader
There is very little doubt that if Ford, Chrysler and General Motors can withstand the battering they are collectively taking, the companies will reemerge as bit players on the global automotive stage. Don't expect any of the Detroit Three to even come close to their former glory. With that said, even in rough economic times new players will emerge who will start seeing an upswing in market share.
I recently received a study from the Korea-based Samsung Economic Research Institute that says current economic conditions will allow mid-level players as well as underdogs that have been less affected by the financial crisis to catch up with the giant carmakers.
Hyundai is currently well positioned to have a chance to leapfrog and close in on the world's top three.
Given Hyundai's relatively low exposure to recession hit developed auto markets such as the U.S. and Europe, the world's ninth-largest carmaker can sustain growth while progressing in emerging economies of Asia and Latin America.
Although Toyota has the financial capacity to overcome troubles caused by declining demand in developed markets and a soaring yen back home, the institute says the world's no.1 carmaker will inevitably suffer a loss of global market share. In many ways, as unfortunate as it may seem, Toyota is starting to become the Japanese version of a Detroit Dinosaur.
While most of the world's automakers have retracted their marketing budgets, Hyundai decided to roar ahead. The release of the much heralded Hyundai Genesis and their bold Hyundai Assurance marketing campaign that lets buyers turn in their vehicle if they lose their job have been met with great success.
Look for a bunch of smaller more nibble 'little guys' to become upgraded players in the coming years.