Hyundai and Kia
The fortunes of the two companies, which share a corporate headquarters in Seoul, South Korea, but market their products separately in the U.S., have been buoyed by their ability to build well-designed, affordable and fuel-efficient vehicles that consumers want to buy. (Hyundai Motor owns about 39% of Kia Motors. Together they form the world's fifth-largest automaker.)
When value of the dollars is strong:
In the international market today, the supply and demand for currencies and the resulting relative values of currencies can affect the demand for imports and exports. For example, if we have a strong dollar, the dollar is very valuable compared to other currencies; other currencies appear very inexpensive to us. Because we can buy the currency more cheaply, the prices of the country’s products appear lower to us. And at lower prices, quantity demanded rises. So when the U.S. has a strong dollar, we buy more imports from foreign countries. This helps U.S. importers, such as electronics outlets, grocery stores, and gas stations, because when they can buy goods at a lower cost, they can offer those goods to their customers at lower prices, increasing the quantity demanded for their products and potentially increasing their profits.
Expansion to US
Hyundai plans to move production of its popular Elantra compact car from Korea to the automaker's Montgomery, Ala., plant later this year.
"I'm going to build my three best selling cars in the U.S.," Krafcik said. "Ford builds its best selling car in Mexico."
Hyundai's three best sellers are the Elantra, the Sonata mid-sized sedan and the Santa Fe SUV. Together, they now make up more than half of Hyundai's U.S. sales.
Because new versions of both the Elantra and Santa Fe will be released soon, an increase in sales of both models is expected. Once all three models are produced in the United States, Hyundai executives expect that a significant majority of Hyundai's sales in this country will be of American-made cars.
When value of the dollars is strong:
In the international market today, the supply and demand for currencies and the resulting relative values of currencies can affect the demand for imports and exports. For example, if we have a strong dollar, the dollar is very valuable compared to other currencies; other currencies appear very inexpensive to us. Because we can buy the currency more cheaply, the prices of the country’s products appear lower to us. And at lower prices, quantity demanded rises. So when the U.S. has a strong dollar, we buy more imports from foreign countries. This helps U.S. importers, such as electronics outlets, grocery stores, and gas stations, because when they can buy goods at a lower cost, they can offer those goods to their customers at lower prices, increasing the quantity demanded for their products and potentially increasing their profits.
Expansion to US
Hyundai plans to move production of its popular Elantra compact car from Korea to the automaker's Montgomery, Ala., plant later this year.
"I'm going to build my three best selling cars in the U.S.," Krafcik said. "Ford builds its best selling car in Mexico."
Hyundai's three best sellers are the Elantra, the Sonata mid-sized sedan and the Santa Fe SUV. Together, they now make up more than half of Hyundai's U.S. sales.
Because new versions of both the Elantra and Santa Fe will be released soon, an increase in sales of both models is expected. Once all three models are produced in the United States, Hyundai executives expect that a significant majority of Hyundai's sales in this country will be of American-made cars.