Firm Analysis: Hyundai Motor America

As U.S. automobile firms rebuild their brand image, distribution networks and workforce from the massive government-sponsored corporate restructuring in recent years, and Japanese firms continue to struggle with under-capacity due to the Tohoku earthquake and tsunami, Korean-based firms have flourished (Ramsey & Takahashi, 2011). In particular, Hyundai has experienced rapid market growth in the U.S. market due in part to the recent struggles of its main competitors. Their success, however, is also due to its new product designs, fuel efficiency, improved customer service and consumer advertising focused on total brand quality. Indeed, Hyundai’s recent success can be attributed to its increase in quality. According to a Fall 2011 study, Hyundai has improved its perceived quality amongst U.S. consumers, moving from the 18th to the 9th ranking in under three years (Transportation Business Journal). Furthermore, as defined in Exhibit 1, their mission statement lists safety, quality and efficiency as their primary undertaking in the manufacturing process. Hyundai’s scope of operations in the automobile industry encompasses the sub-compact, compact, sedan, and SUV product lines. As outlined in Exhibit 2, Hyundai offers both base and luxury models in each product line that is comparable to its competition. As part of its U.S. operations, Hyundai currently has four main facilities: California Design and Research Center, Michigan Engineering Facility, California Proving Grounds, and the Alabama Manufacturing Facility (Hyundai USA Corporate Website, 2011). As its largest investment, the Alabama Manufacturing Facility opened in 2006 at a cost of one billion dollars, employs approximately 3,000 employees and produces over 300,000 vehicles per year at full capacity (Self, Self, & Bell-Haynes, 2011). The manufacturing plant assembles the Santa Fe, Genesis, and Sonata models while all other models are manufactured abroad and shipped to U.S. dealerships (Hyundai USA Corporate