While just about everyone considered Hyundai and Kia as second-tier brands a few years ago, the pair is currently making headlines for being too... successful.
"Demand is outstripping availability," says John Krafcik, chief executive officer of Hyundai Motor America.
In the U.S., where Hyundai and Kia now have about the same market share as Honda, customers who want a particular colour or set of features must be prepared to wait.
The most zealous buyers even place their orders far away from home and fly to the dealer to pick up their cars, which is unheard of for an entry-level brand like Hyundai.
In Canada, the Korean duo sold 10,946 cars during August, accounting for 17.5 percent of the market – well ahead of Ford (10.8 %), Toyota (13.2 %), and Honda (7.2 %).
With affordable, attractively-styled products that offer a wide array of standard features, many analysts believe that the Hyundai-Kia Automotive Group could become the world's top seller within a couple of years.
However, that title may proved to be a poisoned chalice. As GM and Toyota both have found out, focusing on production volumes can compromise quality and safety.
"One of the concerns is that our current quality systems won't hold up if they're forced to accommodate too much production," said Mike O'Brien, vice president of product planning at Hyundai's U.S. headquarters in Fountain Valley, California.
Looks like Hyundai and Kia have their work cut out for them if they intend to steal the crown and keep it for a long time.
Source : CNN Money