Hyundai managed to increase its quarterly net profit by 13% reducing overseas capacity and keep sales running.
South Korean Hyndai managed to outperform in an industry affected by the European crisis, which VW and Daimler began to feel too. It’s been two years since the automaker announced plans to build a new plant, as it chose to focus on quality and brand instead of chasing market share. This move made the automaker run short of cars in the recovering US market and other emerging countries.
“With its growth rate moderating on limited capacity and the global economy weakening, it’ll be a challenge for Hyundai to come up with a magic growth formula,” said Ohm Joon-o, a fund manager at Kiwoom Asset Management, which holds Hyundai stock.
Apparently Hyundai’s plan is going well, taking into consideration that it was the only automaker to report July-September net profit up to 2.17 trillion won, an increase of 1.92 trillion won from last year. it is an amazing performance if we are to look at Ford who closed the Genk plant and now is expected to close the Southampton one too, Peugeot who accepted the government’s aid under certain conditions and VW which reported a big drop in profits.