Impact Of Internationalization Of Hyundai

From the last two decades auto industry is growing more competitive. Competition from the foreign automakers like Toyota and Honda is also high. In

The company produces vehicles under the names Ford, Lincoln, Mercury, Jaguar, Volvo, Land Rover, and Aston Martin. Ford likewise keeps up controlling enthusiasm for Mazda Motor Corporation

During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company’s

Expanding operations into another country is not a decision any company should take lightly. Comprehensive investigation and market research should determine if the decision to penetrate a foreign market is a viable one. Research indicates that South Korea is a top contender of manufacturing and exporting automobiles and currently ranks 5th in the world. According to figures from Korea’s Polyurethane World magazine, “between 1985 and 2010 automotive production rose from 265,000 cars/year to 2.9m cars/year with a compound annual growth rate of 11% during the same period the amount of flexible foam consumed in the sector rose from 6kT/year to 81.2kT/year

General Motors (?GM? or ?the company?) has a rich history longer than a century starting with its corporate organization in 1908. Following its organization, GM acquired its first brand, Old Motor Works, which was followed in 1909 by the purchase of Cadillac for $5.5 million. Two years later, GM organized both General Motors Truck to handle sales of GM?s Rapid and Reliance products and General Motors Export Company to handle export sales out of the US. In 1918, GM purchased Chevrolet Motors. In 1926, GM entered Australia, New Zealand, Japan, Egypt, Uruguay and Argentina through the General Motors Export Company. General Motors Truck became the modern GMC in 1943 when GM acquired the assets of Yellow Truck & Coach. In 1945, GM finally established all of its historical core brands (Buick, Chevrolet, Cadillac, GMC, Oldsmobile, and Pontiac) when the Buick-Oldsmobile-Pontiac Assembly Division, which would be renamed the General Motors Assembly Division in 1965, was formed.

Several factors have affected how the American auto industry now positions itself on the world market, and big changes have been made to reflect this new direction. The introduction of new technologies in vehicles, the growing market for cars in new developing markets, the impact of the industry on the environment, legislative responses and demands, as well as the increased expectations from consumers, are some of the factors. More international cars are being designed, manufactured and bought by American consumers and exported to foreign markets today than those exclusively manufactured by American companies, redefining the American auto industry, while having a positive impact on its economy. International brands accounted for 45% of total sales in the U.S. in 2013 and have now risen to 59% of the market, and continue to grow. While the amount of American cars has decreased in the local U.S. market share to international ones, the increase of foreign car production on U.S. soil has had the effect of creating new jobs for Americans both in the auto industry as well as in related new industries. The industry has seen huge growth numbers in the last few years with more growth expected.

They are into highly customized heat equipments & because of new competition from European & Korean companies they have changed their corporate policy, which emphasize on reducing the product variety & standardized the product. The new business policy also states of reducing the current lead time from 14 weeks to 6 weeks.

Global competition in the industry: There are many vehicle manufacturers throughout the world. A few common vehicles seen in my state are GM, Chrysler, Lexus, VW, Honda, Toyota, Ford, and Jeep. Each company tries to stay ahead of the rest. Toyota, based in Japan, for example was one of the first businesses to introduce hybrid vehicles. This was a direct result of the oil embargo. After having three oil shortages automobile manufacturers are creating more fuel efficient, environmentally friendly products.

Increased globalization is the direction that all major multinational corporations are moving towards. Ford had made a good attempt at making a world car that proved to be partially successful in the beginning of sales. The company has learned that locational specialization is an extremely important aspect to selling globally because of the differing personal preferences and legal demands.

Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This

Tata Motors on June 02, 2008 acquired the Jaguar Land Rover business from the Ford Motor Company for a net consideration of $2.3 billion.

It also commenced the re-organization of the business and the markets. Although, everyone had a strong belief that company needs a new launch to take it out of the situation however till mid of 2007, they had no products. Additionally, the credibility of the CEO was

One of the problems faced by Malaysian Automotive Industry is reputation. For many years Proton car is always being branded as a cheap and below par car manufacturer. Due to this unwanted reputation, consumers are sceptical about Malaysian cars where it does not guarantee any assurance. Since Proton was formed in 1985, Proton managed to breakthrough in domestic and international market as an affordable car. But over the years, Proton has compete aggressively with other automotive manufacturers due to localization of many foreign manufacturers in Malaysia. Due to the localization, foreign cars has been in the market in lower prices. This makes Proton as a car that does not have resale value because the pricing of Malaysian cars depreciates rapidly each year.

KIA, which means “arise from Asia” in Korean, started out making bicycles prior to World War II (Kia Motors Corporation, 2008). The company developed the manufacturing of steel bicycle tubing into a multi-national corporation producing cars and trucks. Prior to merging with Hyundai in 1998, Kia was the second largest producer of vehicles in South Korea (Kia Motors Corporation – Company Profile, Information, Business Description, History, Background Information on Kia Motors Corporation, 2008). Examining Kia’s transformation in a country lifting itself out of the

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.