Hyundai and North Korea, will Hyundai be in trouble?
One of the leading brands in America over the past few years, the up and coming Hyundai USA, is a company that was once overlooked as a non threatening niche brand that sold cheap cars to a very small group of people. Following the Hyundai and Kia Motors restructuring and re positions of their respective brands, with excellent cars such as the Hyundai Genesis and its bigger brother, the Equus, Hyundai is quickly gaining market share in the USA and even worldwide, and has made an impact on both Honda and Toyota sales in the past few years. With the value laden Hyundai Sonata and Hyundai Elantra hitting the small car and mid sized family car markets, Hyundai has an ever imposing threat on the kings of the middle class: Toyota and Honda. The Sonata and Elantra started the now popular trend of offering tons of amenities at a low cost with features such as Bluetooth backup camera and even navigation which has led Toyota to redesign almost the entire fleet that is currently offered.
With all of the recent success that Hyundai and Kia have had, the impending threats of a war between South and North Korea and even the USA comes as very bad news to Hyundai, who is now headquartered in South Korea. With the possibility of a war, there is going to be a serious threat to production of vehicles worldwide, and much like the Tsunami’s had an affect on Toyota Prius sales, where consumers were unable to get credit on a new Prius lease due to supply and demand, Hyundai may face the same nightmare and be forced to limit sales and production until they are able to figure out alternate means of producing what seems to be trending toward becoming the words favorite vehicle manufacturer. According to chief economist at the IHS Global Insight forecasting firm, “[the possibility of a war between North and South Korea] impact on markets and global confidence would be shattering.” This could mean that there is a potential for a collapse in the automotive market and potentially cause yet another worldwide recession, with an auto industry disaster and then potentially a credit disaster.
North Korea does not need to be shaken by these eventualities, as they have already barred trade into North Korea from South Korea before, and they continue to ignore Americas warnings not to launch any missiles and our pleas to look for a peaceful alternative. Kim Jung Un is known around the globe as a dictator who is merciless and potentially tyrannical he is not moved by important driving factors of our global economy and the potential problems he may cause on our already fragile growth we have seen in the past 2 quarters. Here is to hoping that this will all end peacefully and we will not see any more problems from the already heated arguments coming from the Eastern part of our world.