More people are choosing the South Korean brand 05/02/2011
Following the devastating earthquake and tsunami in Japan, some car analysts around the world have been wondering what will happen to the automotive industry, as the country is known as one of the major hubs of auto parts.
However, while most car companies are slowing down production in the wake of this tragedy, South Korean brand Hyundai is actually seeing tremendous success, proving that not all Asian automakers were affected by the disaster. The New York Times reports that Hyundai say a 47 percent rise in net profit this quarter, equating to $1.7 billion.
Company executives have been trying to branch Hyundai's mark in the U.S. market, which has appeared to go over quite well.
"Hyundai has been emerging as an alternative to Japanese cars, shaking off its image as a maker of cheap cars," Lee Dong-jin, a fund manager at KTB Asset Management, told the news provider. "It's now seeing some benefits from increasing production at overseas plants while the world took a hit from the financial crisis."
Reuters reports that some analysts were surprised by the strong quarter, as the company has never shown as large of a boost before.