Hyundai’s Q3 profit surges to record-high $827 million
Hyundai triples its third-quarter profits on surging global sales!
Hyundai announced its third quarter net profit jumped to a record $827 million from a year earlier, with profits more than tripling from last year’s $264 million. Hyundai profits were fueled by surging sales at automaker’s key markets, such as China, USA and Europe.
Hyundai has been particularly successful in China, where it has sold more than 155.000 new cars in the last three months. In September alone, the automaker sold more than 60.000 units in China, while its sales in India have been boosted by 17 percent.
Thanks to “cash for clunkers program”, Hyundai also managed to boost its new car sales in the US market. In August, the company set its best sales month ever, with sales crossing 60.000 mark. The US goverment program, which ran out on August 24th, provided rebates worth as high as $4.500 to those consumers who traded their old gas-guzzlers for new, more fuel efficient vehicles.
In the first nine months Hyundai’s US sales increased 1.3 percent to 342.217 units, while automaker’s global market share rose from 5 to 5.5 percent.
If Hyundai’s sales continue to grow, industry analytics speculate that the automaker will likely post an impressive 40 percent increase in net profit to $1.72 billion for the whole of 2009. With such a performance, Hyundai now looks to challenge Volkswagen as the world’s most profitable automaker in 2009!
The automaker now looks to flood the market with a slew of new models, such as 2011 Sonata sedan and 2010 Tucson crossover. Both models have been on sale for about a month in the Korean market, where they posted strong initial sales.
International sales of new Hyundai Sonata and Tucson / ix35 is expected to commence later this year or early next year. Hyundai originally planned to show off the all-new Sonata in the United States during the Jan. 11-24 Detroit Auto Show, but the automaker now is considering a release at the Los Angeles, which opens its doors in December.
October 27th, 2009 at 8:37 pm
Not directly profit related, but Consumer Reports’ new reliability survey came out today. Genesis V6 was Better Than Average, which is what Azera improved to, too. V8 Genesis was average. In fact, all HKAG vehicles except Kia Sedona and Sorento were Average or better. So should help Hyundai keep making progress.
October 28th, 2009 at 3:02 am
While not specific to this post, I have learned that Hyundai USA will in fact be launching the 2011 Sonata sans V6. So there will be two 4cyl powerplants to choose from, a 2.0 and a 2.4. The U.S. spec’d 2.0 is rumored to arrive with 197 horses while the 2.4 is supposed to wring out approximately 240 horses. Good numbers no doubt for 4 cylinders but the question is at what cost?
Certainly improved MPG numbers are undoubtedly the major benefit but what about those zero to 60 times? The current 4 cylinder mill can gallop to sixty in a leisurely 9.8 seconds. I know we’re talking family sedans here but anything over 8 seconds will be borderline pathetic.
I’m also very curious about the interior material quality. For example, will the glove box be lined and dampened like the current model? I know this seems like a small detail but small details like this often get in the way of car brands that set the standard instead of being defined by it.
So far, I’ve only read one write up from a non-South Korean first drive impression which made mention of slight wind noise over 50 MPH, mind you this was a KDM version, but I’m not sure whether that was because the car was pre-production or perhaps due to a slight window leak. Still the writer’s opinion was that the car did make a very positive impression overall and drove and felt miles better than the current outgoing model.
I think my two concerns regarding the 4 cylinder only engines are NVH (noise, vibration, harshness) compared to the current 2.4 175 horsepower engine. The current 2009 Sonata’s curb weight as equipped is 3,299 lbs. Also the so called suspension “clunk” that some owners have complained of will have been properly sorted.
It would serve Hyundai well to churn out 3 more horses from their base 2.0 leader engine to an even 200 which they could use to position above all its segment competitors and then push the premium 2.4. To no ones surprise, Hyundai has remained deliberately tight lipped about the upcoming powertrain options.
I know most have reasoned here that because the 4 has a greater take rate (according to Hyundai based on sales of the current model: 85 percent for the 4 cylinder versus 15 percent for the 6) so it makes more sense to only offer a 4. But Hyundai has never offered a car like the upcoming 6th generation Sonata. I think its risky and timid not to offer even the option of the 6 unless they have planned an SE turbo to put down a quite doable 265 horses at the front wheels.
We will soon learn whether Japan’s top brands, Toyota and Honda, response to Hyundai’s decision, leads to their moving down to 4 bangers within this segment or will they offer more improved efficiencies in their sixes which would then undermine Hyundai’s drive to be the global king of Green.
October 28th, 2009 at 6:51 pm
I’d say 240 is too low. Though the YF is lighter than the NF, that’s still going down on HP from the current 3.3L. And I’d agree that 200 even would have psychological implications that would make it worth getting those last 3 ponies.
As for the suspension clunk, my understanding the YF is going back to front struts, so hopefully it’ll be gone.
October 28th, 2009 at 8:01 pm
2011 YF Sonata: Questions that need Answers
The real challenge that I see with the 4 cylinder only option is that compared to the existing competition, that offers both a 4 cylinder and 6, Hyundai has to position the Sonata to compete in the middle.
Just how much gap exist in that middle for Hyundai to fill with just their 4 cylinder engine choices will largely be dependent on the so-called demand created from the donut hole of shrinking brands like GM and Chrysler. If both Honda and Toyota respond by offering comparable mileage to their 6 cylinder models, Hyundai’s strategy could be in trouble.