1997 Asian Financial Crisis and Hyundai Motor Corp

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Hyundai Motor Company-Beijing Automotive Joint Venture Case Study [pic] Topics in Emerging Markets Prof. Mei April 9, 2003 Michael Cheng- mpc238@stern.nyu.edu Richard Lee- rl392@stern.nyu.edu Kevin Park- kgp203@stern.nyu.edu Table of Contents: Executive Summary: 3 Case Study: Introduction: 4 Case Background: 5 Hyundai Motor Corp Background & History: 6 South Korean Macro Study: Economic Background: 7 Social Climate:…show more content…
The two companies plan to form a joint venture to develop small cars for the global market. It initially began manufacturing cars and light trucks through a joint venture with Ford. However, by the early 1970s Hyundai was ready to build cars under its own name by debuting its subcompact Pony in 1974. The Pony was a great success domestically and soon propelled Hyundai to the top spot among Korea's carmakers. During the mid-1970s, the company began exporting the Pony to El Salvador and Guatemala. Several years later, Hyundai started to mass produce and anticipated penetrating strategies into markets around the world including Canada. Hyundai then introduced the Hyundai Excel in 1985. That very year the company established a subsidiary in the United States, the Hyundai Motor America. Hyundai exported Excels to the US and sales soared the next year. Building on this success, it built a factory in Quebec, Canada. The company introduced its first sports car, the Scoupe, in 1990. The following year it developed the first Hyundai-designed engine, called the Alpha. Two years later Hyundai unveiled its second-generation proprietary engine, the Beta. By 1998 Hyundai was beginning to feel the pinch of the Asian economic crisis as domestic demand dropped drastically. However, the decrease in Korean demand was largely offset by exports. Hyundai not only established a joint venture with DaimlerChrysler but went on to establish a collaboration with

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