1. Hyundai and Kia

2. Hyundai and Kia Question 1
How the rise in value of Korean won to dollar impacts Competitiveness of Hyundai/Kia in US
Competitiveness = how low a company’s product prices are compared to other companies
The rise of the Korean won  direct effect of rising production cost of inputs (car parts, metals, labor, etc.)  that means we will see rising prices  reduction in competitiveness
Considering Hyundai/Kia’s business strategy is to be the most competitive in the market, rises in the Korean won are a major concern!

3. Hyundai and Kia Question 2
Hyundai and Kia are both expanding their presence in the United States. How does this hedge against adverse currency movements? What other reasons might these companies have for investing in the US? What are the drawbacks of such strategy?
Hedging the company’s operations offers security against future changes in currency.
Increase Market Share in North America - potentially
The US markets may buy more foreign cars, if made in the USA.
The US may/may not later protect itself from importers – unlikely, but possible.
FDI will get Hyundai and Kia excellent ‘value for money’ when investing in the US, as their money will go further. They have more capital to invest while the won is high.
The currency might go down, as well as up.

4. Hyundai and Kia Question 3
If Hyundai expects the value of the won to strengthen appreciably against the US dollar over the next decade, should it still expand its presence in the United States?
Margins on cars sold in the US and EU are just 3%.
The Korean Won has been rising in value against the $US steadily, peaking in 2007.
Expanding their operations(presence).
The US market may buy more foreign cars, if made in the USA.

5. Hyundai and Kia
Question 3

6. Hyundai and Kia
Question 4
In 2008 the Korean won depreciated 28% against the United States dollar. Does this imply that Hyundai and Kia were wrong to invest in the United States? How does this explain the relative strength of car sales from Hyundai and Kia in the US market during 2009?
Aggressive pricing
Steadily gaining the market share in the U.S.
After recession  sales of small cars held up
2 reasons:
2 month depreciated of the Korean won
Change in the U.S. Market

7. Hyundai and Kia Question 4
Taken from:

8. Hyundai and Kia Future Perspective Kia Ray – Electric gas/hybrid
Hyundai BlueOn – Fully electric