Hyundai CEO Krafcik warns against price war, short-term thinking
Filed under: GM, Hyundai, Toyota, Earnings/Financials
Hyundai Motor America President and CEO John Krafcik believes that some automakers are starting a price war, which would be an unwise move that focuses solely on short-term sales.
General Motors had strong sales in January 2011, but its 23-percent gain was due to increased incentives and price-cutting. After GM made its move, Toyota followed suit.
Krafcik says that Hyundai, whose incentive spending is among the lowest in the industry, has no plans to join in this game. Heavy incentive spending leads to sharp up and downswings in an automaker’s accounting ledger. Hyundai sales rose 24 percent in 2010 and Krafcik expects to see improvements in 2011. While some automakers are fiddling with the radio, Krafcik is paying attention to the road in front of him.
[Source: The Economic Times]
Hyundai CEO Krafcik warns against price war, short-term thinking originally appeared on Autoblog on Sun, 13 Feb 2011 11:01:00 EST. Please see our terms for use of feeds.
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