WSJ Opinion: Why Hyundai Is an American Hit

But First Snide's Remarks: Quality is important but only one aspect of building cars consumers want to buy, as proven by the GM fiasco...very relable cars that have not ignited a spark of desire in the North American market... Tell me what you think, msnide@theautochannel.com.

Washington DC September 14, 2009; The AIADA newsletter reported that last year Hyundai's global sales bucked the industry's decline and rose 5 percent to 4.2 million cars and trucks.

Even in the U.S., the world's most competitive car market, Hyundai's sales rose 0.8 percent in the first eight months of this year. Hyundai's success stems from a sustained corporate effort at reinvention—the very same word General Motors is using to describe its mission these days.

Paul Ingrassia at the Wall Street Journal writes that Hyundai's initial U.S. success in 1986 was undercut quickly by quality problems. A decade ago, Hyundai acquired Kia, a victim of a mid-1990s shakeout in the Korean auto industry. It also established a new quality-control division charged with boosting reliability by emulating Toyota's vaunted manufacturing methods.

To allay lingering concerns over quality, Hyundai put warranties of 10 years or 100,000 miles on vehicles sold in America. Their campaign began to show results, and the big breakthrough came in 2004, when Hyundai tied Honda for second place in the prestigious J.D. Power & Co. Initial Quality Survey.

The lessons for fellow automakers are simple to articulate, though perhaps harder to emulate. The first is to get a handle on quality. U.S. companies should also make their marketing more relevant.