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Korean Strikes Curb Hyundai, Kia Sales in U.S.
Hyundai Motor Co. and affiliate Kia Motors Corp. exported 120,500 vehicles from South Korea last month compared with 156,200 units in July 2011.
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Hyundai Motor Co. and affiliate Kia Motors Corp. exported 120,500 vehicles from South Korea last month compared with 156,200 units in July 2011. The companies blame intermittent strikes at their Korean plants that have cut production by a combined 90,400 vehicles since mid-July.
The two carmakers say strike-related inventory shortages at their U.S. dealerships are stunting sales growth there. Hyundai and Kia export 35% and 70% of their domestic output, respectively.
Hyundai reports that its exports to America fell to 27,100 vehicles in July from 36,200 units in June. July sales in the U.S. rose 4% to 62,000 vehicles at Hyundai and 6% to 48,100 units at Kia, compared with a 19% increase for all Asian automakers.
Hyundai-Kia had a 24-day supply of vehicles in the U.S. on Aug. 1 compared with an industry average of 54 days, according to Automotive News. A 60- to 65-day inventory is considered ideal.
The shortage may not end soon. Hyundai's union is threatening an "all-out strike."
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