Product details

Hyundai Motor Corporation (HMC), the largest South Korean auto manufacturer and the seventh largest in the world, commissioned its first assembly and manufacturing facility in the United States on 20 May 2005. The $1.1 billion subsidiary, named Hyundai Motor Manufacturing Alabama, LLC (HMMA), was established at Montgomery with an estimated annual production capacity of 300,000 cars, primarily Sonata (mid-sized sedan) and Santa Fe sports utility vehicles (SUV). Hyundai was the fourth automaker, after Toyota, Honda and Mercedes, to set up a plant in Alabama and the sixth Asian car company to enter the US market. Already an exporter of the Hyundai and Kia brands, HMC believed the plant would help it to enter the World?s Top Five Automakers? list and improve upon its current ranking of no 7. The plant was critically important for the growth strategy of Hyundai in the US automobile market. But analysts were sceptical about the success of its new model Azera in the US market. The company was also not expecting profit from the Hybrid segment and was forced to reduce its high manufacturing cost. The case discusses the marketing strategies adopted by Hyundai for the US automobile market, the challenges it might face and offers scope for discussing how the company planned to overcome those challenges.