How did Japan's Crisis Affect Korean Auto Industry? Options

[tom2011]

I'm not trying to undermine Hyundai by saying that they use Japanese parts, however through research and development, companies often have to assess other brands to develop their own even if it means buying them. This is normal behaviour in the motoring industry. Once upon a time Hyundai were using Mitsubishi engines where much of the DNA may have transcended into current engines.



The "new battery" that you're referring to is simply lithium polymer, the same technology used by remote controlled cars, notebooks and wireless devices. The Tesla Roadster has it, even Audi have already tested this successfully last year. The problem with it is that it costs more, runs hotter and doesn't last as long as NiMH which can eventually compromise safety standards if not developed right. Hyundai might however try to develop a market where these batteries have to be consumed every 2-3 years just like the existing batteries normally used for starting up and electrics until the technology matures and can be used safely. I think if Toyota were confident in the technology they would have used it by now. We can only wait and see.

Honda have been testing the FCX since 2006 and have already sold them in numbers in the US and Japan, but only in destinated areas where Hydrogen pumps are facilitated. Hydrogen technology has to be a nationally accepted alternative to petrol/gas/diesel in Korea for it to sell. I have never seen a Hydrogen pump available anywhere in Seoul.

Also, there is a big difference between promising and actually producing these hydrogen and dual-clutching cars in a couple of years. Again, we can only wait and see if Hyundai can deliver in such a short time without any real world simulation of actually testing by real world consumers, particularly on a global scale.



As I've said in my previous post, Hyundai/Kia has definitely improved over the past few years and yes they have always been subjected to market taunting and social stigmas because of their humble beginnings. But like I said, if Hyundai is to compete globally then not only do they have to follow and catch up to the Japanese, but they also have to watch their backs with Chinese manufacturers in the rear. Many European and North American companies have used China as a basis for developing their products, I wouldn't be surprised if China came out with very similar local brands to compete at a much cheaper price. In fact, I wouldn't be surprised if China decide to buy out some of these brands (just like India bought out Jaguar and Malaysia buying out Lotus). That would certainly be a quick fix to market affordable cars while retaining a "brand name".

I like where Hyundai is heading (drove a rental i30 once and loved it), however I would like to see more Asian companies take on genres other than the economy-mid tier market such as motor racing (F1), high level sports cars (to compete against Ferrari, Lambos etc), aerospace technologies and agricultural machineries rather than compete against one another in the same market. The Japanese has no less than 12 different motoring companies often residing in the same industrial park, yet they are still able to survive in the same industry specialising in different sub markets.

One thing that Hyundai/KIA still lacks and still weak in, is its handling of its cars, and the steering wheel feed back of its cars back to the driver - meaning Hyundai cars translates into lack of entertainment factor for the driving enthusiasts who like to drive cars. Korean cars have always been criticized in this regard, and I still don't think they've overcome that hurdle. It seems always to be 1% short in that department, where the Japanese and Germans excel at. If you think of cars as tools to go from A to B, then this wouldn't matter much, as long as those cars can go A to B without any problems.

Having said that, other than the fun factor of their cars and the weaker brand name value, I really don't think Hyundai falls behind anymore in any area to the Japanese makes Honda and Toyota. Hyundai doesn't depend on the Japanese for any technology, and they can make any type of engines and any type of cars. Even within the Japanese makers, only Honda and Toyota are rated as first rate companies. If you look at three areas for non luxury brands: Initial customer satisfaction, 3 year long term reliability, and crash safety, Hyundai matches up very well with Honda and Toyota, often matching or sometimes beating them in these areas, certainly better than German and American cars in the reliability ratings. Even the traditional resale values of Hyundai is coming up quickly with the new Sonata and the Elantra, with second highest predicted resale values in their respective classes. I'm not sure what you mean when you say Hyundai still needs to catch up. Are you talking about catching them in sales figures?

This post has been edited by tom2011: Apr 4 2011, 07:39 PM

[KochiGachi]

I thought Hyundai have no interest in competing with BMW/Mercedes and all other luxury/sport car brands.
Hyundai is trying to compete and beat Toyota, Toyota didn't have much success from their luxury/sporting brands.

Hyundai makes affordable family cars and that's their current aim.
Expecting Hyundai be like some of the luxury cars then you guys are over estimating Hyundais' capability.

[KraterosHellas]

I thought Hyundai have no interest in competing with BMW/Mercedes and all other luxury/sport car brands.
Hyundai is trying to compete and beat Toyota, Toyota didn't have much success from their luxury/sporting brands.

Hyundai makes affordable family cars and that's their current aim.
Expecting Hyundai be like some of the luxury cars then you guys are over estimating Hyundais' capability.

it's obvious that u haven't heard of lexus in ur life.

[initially]

One thing that Hyundai/KIA still lacks and still weak in, is its handling of its cars, and the steering wheel feed back of its cars back to the driver - meaning Hyundai cars translates into lack of entertainment factor for the driving enthusiasts who like to drive cars. Korean cars have always been criticized in this regard, and I still don't think they've overcome that hurdle. It seems always to be 1% short in that department, where the Japanese and Germans excel at. If you think of cars as tools to go from A to B, then this wouldn't matter much, as long as those cars can go A to B without any problems.

I'm not sure about steering feedback as I've never driven a Hyundai "sports" car, the numb feeling you get is inherited from a generic chassis design from budget conscious models such as the Excel or Lantra. But all European and American critics like to pick on this plus the character factor that all Asian cars supposedly lack, my advice is to forget listening to Top Gear as that's all they ever talk about and get into motor racing to figure out "feel".

I'm not sure what you mean when you say Hyundai still needs to catch up. Are you talking about catching them in sales figures?

Sales figure is just one obvious factor, there are so many showcases to learn from:

- Nissan GTR, V6 engine, 0-62mph in 2.9 seconds, strong motor racing heritage
- Subaru/Mitsubishi Impreza/EVO, rally racing heritage
- Lexus LFA, V10 that weighs less than a V6, motor racing
- Nissan 370z, affordable sports car, motor racng
- Mazda MX5/Roadster, most popular sports car in the world, motor racing
- Honda VTEC, most popular engine, F1/tour racng
- Mazda Rotary, innovation, also developed Hydrogen powered cars, motor racing
- Toyota/Lexus Hybrid, started the whole hybrid ballgame, F1/rally/tour racing

I've missed out a few but you get the gist of it.