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Sonata, Elantra driving down Hyundai quality scores

Hyundai was the butt of many jokes in the auto industry when it first entered the US market, but since then, it has forged ahead and built cars that stand with the best in their respective segments. The 2011 Sonata and 2011 Elantra were seen as the apotheosis of the brand's forward progress when they were introduced, but falling J.D. Power and Associates Dependability Study results may actually cause them to hurt the company's hard-earned reputation.
J.D Power's study examines three-year-old vehicles for problems per 100 vehicles. Since the 2011 study for 2008 model year cars, Hyundai has fallen from 10th overall with 132 problems to 27th in the 2014 survey of 2011 model year vehicles with 169 problems. It was also Hyundai's second consecutive year of an increase in reported problems. According to Automotive News, many of these problems are due to faults with the Sonata and Elantra, but J.D. Power didn't identify specifically what issues caused Hyundai's dependability to tumble so far down the list. However, the study found that, on average, reliability fell throughout the industry for the first time since 1998.
Getting the Sonata and Elantra right are vital to Hyundai. In 2013, they were the company's best-selling cars. "We'll be closely going through the data to see where improvements need to be made. Hyundai's goal is nothing short of quality leadership, and the report shows we have work to do," Hyundai spokesperson Jim Trainor said in an email to Autoblog.

Hyundai US marketing chief steps down

For the past four and a half years, Hyundai's marketing efforts in America have been steered by Steve Shannon. But now the Korean automaker is going to have to find a new marketing guru, because Shannon has reportedly stepped down with apparently immediate effect.
A career automobile marketer, Shannon came to Hyundai early in 2011 after over a quarter century at General Motors, effectively switching places with Joel Ewanick and Chris Perry, who moved from Hyundai to GM the previous year.
During his 25 years in Detroit, Automotive News points out, Shannon worked with such brands as Buick, Oldsmobile, Saab and Hummer. He was particularly instrumental in launching the Saturn brand and served as executive director of marketing for Cadillac prior to moving to Hyundai.

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.