Hyundai looking for a merger too?
#1
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Hyundai looking for a merger too?
hyundai's hit some hard times, what with the arrest of its CEO and on-going union problems. their quest to become the world's #5 automaker by 2010 might be in danger. the answer might come in the form of an alliance (merger) with another auto maker. these mergers sure are becoming popular, especially for struggling companies. analysts think that mitsubishi is a likely choice.
http://times.hankooki.com/lpage/2006...8003610230.htm
http://times.hankooki.com/lpage/2006...8003610230.htm
Hyundai Motor Under Pressure to Look for Partner
Renault-Nissan, GM, Ford Leading Reorganization of Global Auto Industry
By Kim Yon-se
Staff Reporter
Hyundai Motor, hit by the prosecution’s investigation and its union’s strikes this year, is now saddled with concerns from business alliances among global carmakers.
The triple alliance being discussed among General Motors, Renault-Nissan and Toyota Motor has been a severe pressure for Hyundai-Kia Automotive Group as it struggles to become the world’s No. 5 automaker by 2010.
Analysts say Hyundai Motor should focus on a global trend in which the U.S., European and Japanese competitors seek a tie-up amid close sales battles in worldwide markets.
Hyundai Securities analyst Song Sang-hoon said he believes the world’s automobile industry has already gone into a mating processes for survival. ``It is necessary for Hyundai to make new alliances with global carmakers.’’
A Hyundai spokesman said his company has begun to research the impacts of the automakers’ possible triple alliance. ``After our automotive research subsidiary makes a report, we will take comprehensive countermeasures.’’
He declined to comment on the possibility of tie-ups with other U.S. or European carmakers after the research.
In 2000, the largest automaker of Korea sought a joint development of new cars in coordination with Daimler Chrysler but dropped the partnership in 2004, citing profitability issues between the two sides.
Market watchers point out Mitsubishi Motor as a potential business partner of Hyundai Motor.
By receiving royalty, the Japanese automaker handed over its technology to Hyundai since the early 1980s.
Furthermore, Mitsubishi is poised to open a sales unit in Korea soon while there are already three Japanese automakers _ Toyota, Honda and Nissan _ operating here.
There are speculations that the automaker has been in contact with a couple of Korean automobile importers over the past few years and may open a showroom as early as the end of 2006.
Meanwhile, Goodmorning Shinhan Securities analyst Yoon Dae-in said Hyundai-Kia won’t be affected by the possible alliance involving GM.
``First of all, the focus is on GM saving itself from a lackluster performance. Their (GM, Nissan) cars are not selling well in the global market, and they are cruising towards financial instability and loss of market share. These wounds have required the automakers to quickly bandage themselves.’’
He said the goal of this realizable auto pact is different from the steel M&A deal between Mittal and Arcelor. The global steel powers tied the knot to raise their overall production capacity and market shares to a much greater level.
GM’s largest shareholder Kerkorian saw the need to restructure due to unhealthy sales, leading to the suggestion of forming a network with Nissan-Renault to help each other out in cutting costs, not in boosting auto-making.
Renault-Nissan, GM, Ford Leading Reorganization of Global Auto Industry
By Kim Yon-se
Staff Reporter
Hyundai Motor, hit by the prosecution’s investigation and its union’s strikes this year, is now saddled with concerns from business alliances among global carmakers.
The triple alliance being discussed among General Motors, Renault-Nissan and Toyota Motor has been a severe pressure for Hyundai-Kia Automotive Group as it struggles to become the world’s No. 5 automaker by 2010.
Analysts say Hyundai Motor should focus on a global trend in which the U.S., European and Japanese competitors seek a tie-up amid close sales battles in worldwide markets.
Hyundai Securities analyst Song Sang-hoon said he believes the world’s automobile industry has already gone into a mating processes for survival. ``It is necessary for Hyundai to make new alliances with global carmakers.’’
A Hyundai spokesman said his company has begun to research the impacts of the automakers’ possible triple alliance. ``After our automotive research subsidiary makes a report, we will take comprehensive countermeasures.’’
He declined to comment on the possibility of tie-ups with other U.S. or European carmakers after the research.
In 2000, the largest automaker of Korea sought a joint development of new cars in coordination with Daimler Chrysler but dropped the partnership in 2004, citing profitability issues between the two sides.
Market watchers point out Mitsubishi Motor as a potential business partner of Hyundai Motor.
By receiving royalty, the Japanese automaker handed over its technology to Hyundai since the early 1980s.
Furthermore, Mitsubishi is poised to open a sales unit in Korea soon while there are already three Japanese automakers _ Toyota, Honda and Nissan _ operating here.
There are speculations that the automaker has been in contact with a couple of Korean automobile importers over the past few years and may open a showroom as early as the end of 2006.
Meanwhile, Goodmorning Shinhan Securities analyst Yoon Dae-in said Hyundai-Kia won’t be affected by the possible alliance involving GM.
``First of all, the focus is on GM saving itself from a lackluster performance. Their (GM, Nissan) cars are not selling well in the global market, and they are cruising towards financial instability and loss of market share. These wounds have required the automakers to quickly bandage themselves.’’
He said the goal of this realizable auto pact is different from the steel M&A deal between Mittal and Arcelor. The global steel powers tied the knot to raise their overall production capacity and market shares to a much greater level.
GM’s largest shareholder Kerkorian saw the need to restructure due to unhealthy sales, leading to the suggestion of forming a network with Nissan-Renault to help each other out in cutting costs, not in boosting auto-making.
#3
Originally Posted by AF
Hyundai is a pretty respectable company now IMO.
#4
Originally Posted by AF
Hyundai is a pretty respectable company now IMO.
Within a generation or two (5-10 years), I could see Hyundai offering some legit high-performance models. With the Germans continually inflating their prices and Honda and Toyota being weary of offering a selection of sports cars (especially sedans), Hyundai could do some major damage in the $25K-$30K segment...
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Originally Posted by ILuvItTheJDM
Within a generation or two (5-10 years), I could see Hyundai offering some legit high-performance models. With the Germans continually inflating their prices and Honda and Toyota being weary of offering a selection of sports cars (especially sedans), Hyundai could do some major damage in the $25K-$30K segment...
#6
Sure Hyundai is climbing the ladder of respect but for some reason I think that people will always be speculative about them and that Honda and EVEN Toyota ( i say EVEN Toyota because of all the recalls they've been getting lately) will always be respected a little more.
Last edited by autofreak; 07-20-2006 at 02:48 PM.
#8
Originally Posted by M Type X
Yay ... Hyundai plus Mitsubishi !!!
Corruption Motors!
Corruption Motors!
#9
Originally Posted by M Type X
What's wrong with an Accord EX-V6 or a TSX? They are key players in that range, unless you like the Altima SE-R.
The TSX is nice, but too pricey. That thing should be sold as a separate model in a Honda dealership (just call it the Euro-R, no Accord in the name, and get rid of the leather, sunroof, HIDs, fancy stereo) for $23K. Then Honda should stop being lazy and design an Acura version with different styling and all the luxo crap and overcharge people for it.
I am not a fan of Nissan at all. The SE-R is OK, but doesn't really excite me.
The MazdaSpeed6 and the Legacy turbo are the only cars that would fit my desires, but I don't like that Subaru is making leather standard in all the turbo cars.
So I would be excited to see Hyundai (or anyone else) offer a midsize sedan with V6 and stick-shift, a well-sorted and safe chassis, and cloth for under $25K.
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Originally Posted by autofreak
Sure Hyundai is climbing the ladder of respect but for some reason I think that people will always be speculative about them and that Honda and EVEN Toyota ( i say EVEN Toyota because of all the recalls they've been getting lately) will always be respected a little more.
Given how Hyundai's crafted their lineup, I'm not suggesting they would fill that gap. They've defined themselves as a more stylish, better value Toyota/Buick. But the point is I don't think Toyota and Honda's level of respect is where it once was and I wouldn't put anything past Hyundai (or their public perception) given their meteoric rise in just the last few years.