Stumbling blocks on the Korea path
By Ian Henry2019-12-10T14:25:00
Outside of the Hyundai-Kia story, Korea’s other automotive players continue to struggle and in global production terms the country is slipping down the rankings. Ian Henry reports
In 2015, Korea was ranked fifth in global vehicle production volumes but fell to sixth behind India in 2016 and to eighth behind Mexico in 2018. There is little sign of it being able to recover past glories in terms of production volumes and its global ranking. It is also caught up somewhat in the crossfire of the US-China trade war.
As well as having significant manufacturing operations in the US, Hyundai, its premium brand Genesis, Kia and their suppliers export significantly to the US, with car exports alone worth well over $20 billion a year; a key part of these exports is the growing hybrid and electric range that Hyundai and Kia make, and as other markets decline or stutter the companies will be keen not to lose out here. Meanwhile, Korea’s smaller players are close to facing what some might call an existential crisis. They are arguably too small to compete on a global scale, and while SsangYong has a niche position in SUVs and crossovers, Renault Samsung and GM Korea have questionable long-term futures…