Hyundai's U.S. Sales Goals Set High

Washington DC April 10, 2007; The AIADA newsletter reported that Hyundai division is under the gun from its bosses in South Korea to sell 555,000 units in the United States this year -- 500,000 of them retail.

"That's ambitious," admits Steve Wilhite, COO of Hyundai Motor America. According to Automotive News, last year Hyundai sold just 455,520 units, retail and fleet. And so far in 2007 those sales are down 1.7 percent from last year's pace.

The Korean executives want to maintain the big annual increases Hyundai had earlier in the decade. But Hyundai's U.S. sales expansion has ground to a halt.

The strengthening Korean currency is a major problem. Eighteen months ago, Wilhite says Hyundai models held a 15 percent price advantage over comparable Toyotas. But the stronger Korean won has put Hyundai prices within 5 percent of Toyota prices, he says.

Bill Wallace, owner of Wallace Hyundai in Stuart, Fla., says sales have been flat in his region because of economic uncertainties and a weak housing market. "Selling more cars of any kind will be difficult this year," he says. "I believe brands like Hyundai will be hurt more than the luxury brands."