After enjoying double digit sales gains in recent years, sister companies Hyundai and Kia are forecasting more modest growth of six percent for a combined global total of seven million vehicles in 2012. Limited production capacity and a desire to focus on quality over quantity were cited as factors behind the prediction.
Though the South Korean automakers have struggled to produce enough vehicles to satisfy demand, they haven’t rushed to increase output and have no plans to open any new plants in the U.S. out of a concern that quality could be adversely impacted by a rapid expansion.
“We will strengthen quality management we have continuously pursued,” Chung Mong-koo, chairman of Hyundai and Kia’s parent group, said last Monday in an annual speech to employees.
The possibility of continued economic uncertainty and the resurgence of Japanese rivals also factored into the conservative output estimate.
“I expect the automotive industry to see growth slowing because of the European debt crisis and the global economic slowdown, while competition is expected to intensify among automakers this year,” Chung said.
Despite the dearth of production increases, the companies still have plans for a number of new models to keep things fresh in 2012: Hyundai will unveil a new Santa Fe and the Brazilian-market HB, while Kia will debut a revamped Cee’d (a European-market compact) and the full-size K9 sedan , the latter of which will likely feature styling cues taken from the GT concept car that debuted at Frankfurt.
References
1.’Hyundai,Kia see …’ view
