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Hyundai Sales Plummet With Korea Missile Crisis

(Credit: © Hyundai )

Car Manufacturer News

Hyundai Sales Plummet With Korea Missile Crisis

While Kim Jong-un and Donald Trump play a game of chicken, Hyundai is watching sales plummet in China. The Chinese market is the largest in the world, and extremely critical for the South Korean automaker.

How bad is it? The Chinese are foregoing Hyundai for other brands to the tune of a 64 percent drop in sales. Dealers have started slashing prices and offering huge incentives to lure in buyers, but it’s not working.

Automotive News reports the situation is so bad, workers at a Hyundai factory in Cangzhou don’t even know if the place will be open when they show up each morning. The facility reportedly has shut down several times in the past six months. This comes after Hyundai has trimmed back production by two-thirds.

What really has the Chinese irked is that South Korea has installed more missile launchers in is country. Considering how little the automaker has to do with that decision, it shows irrationality knows no nationality. Also fueling the resentment is Hyundai’s refusal to use more Chinese suppliers, despite pressure from the government.

Just how much more abuse Hyundai can take in the Chinese market isn’t clear. This does demonstrate the headaches and nuances of doing business internationally. Of course, Hyundai sales are down 25 percent in the United States, which isn’t helping.

Steven has been writing about cars and other transportation issues worldwide for over ten years. His love for cars started long before he can remember, with Corvettes and 911s being his first car-crushes. Since then, he has owned many types of vehicles and has come to appreciate a wide variety of models, the diverse car culture groups, and the automotive industry in general.

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