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      04-13-2011, 03:31 PM   #146
Kerosene Hat
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Quote:
Originally Posted by Legion5 View Post
I have to agree that Hyundai is being ridiculous with their aspirations here. From everything I've read about Korean buying trends, BMW and Mercedes are very well regarded there, so it's not suprising their aspirations lie there, but there is no chance Hyundai will be a serious competitor here.
And Buick has renown and market cachet in China while many American shun GM/Ford and Europeans enjoy Ford/Opel. What's the point? That imported autos have a place in almost any regional market, including Korea?

Quote:
Originally Posted by Legion5 View Post
You can't really build something with Genesis technology that will compete with the 3 series, it just won't work. Hyndai doesn't have the ecnomies of scale in ultra premium manufacturing yet to make a 3 series fighter, if they did try to make it, it would cost them 70k per car to build.
Uh, not sure what you're talking about. "Premium" doesn't usually equate to economies of scale (EOS).


"Premium" operations typically (typically) have a higher cost per unit (CPU) to manufacture, but sell for a greater, well, "premium" or average revenue per unit (ARPU).

EOS are usually (usually) found in low-cost operations. Ie, Hyundai's. Or any auto manufacturer. Is it hard to build a robot-driven, flexible assembly line with lean processes and JIT inventory system and non-union workers? Nope. The BMW plant in Spartanburg looks and behaves a lot like the Toyota plants in KY I've seen footage of. No secrets there....

Generally, a "Premium" strategy is more expensive to operate, yet yields far greater profit margins. I believe Hyundai's building the "fighter" for substantially less cost. Ie, taking yesterday's "Premium" offering and meeting 90% to 95% of the functionality at 70% or less of the price. Imagine 95% functionality/features at a savings of 30%. Unless you have roundels in your eyes, you'll consider it. Which is to the point of Hyundai's strategy.

Or perhaps you're referring to entry barriers blocking Hyundai's way? Ie, brand reputation? Brands take a long time to build -- that's what they're doing. Hyundai can't knock down BMW's door now, but they are doing a good job of being in a conversation with them. Check this thread, e.g.



Quote:
Originally Posted by Legion5 View Post
What you can do as a cut rate company like Hyundai is make watered down ultra luxury cars that consumers have spoken and said they feel are grotesque or you can make upper mid level cars which are fully featured.
And BMW can make strong-performing luxury cars that are under-featured. Again, not seeing the point.

It will be interesting to see the actual car, instead of bench-bitching about Hyundai.

Here's to competition making things better for us all. :beer:
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