[rustynutz]

Shares of Hyundai and affiliate Kia Motors have dipped more than 5% after the carmakers issued their weakest growth forecast in nearly a decade.

Their combined sales are expected to grow by 4% to 7.86 million vehicles in 2014.

The outlook is lower than the 6.2% growth posted by the two firms in 2013.

The forecast comes amid increased competition from Japanese rivals who have benefited from a sharp decline in the yen's value in recent months.

The Japanese currency fell nearly 20% against the US dollar in 2013. A weaker yen makes Japanese goods more affordable for foreign buyers.

At the same time, the South Korean won has strengthened in recently - making South Korean cars more expensive for foreign buyers and negating some of the price advantage the firms had enjoyed in recent years.


Read more: BBC News - Hyundai and Kia shares hit by sales forecast

[Dazzler]

That is interesting Rusty! A fairer playing field for the Japs who still make some good cars.

[beerman]

I wouldn't say any form of currency manipulation is fairer Dazz, and the Japan have been doing a fair bit of that lately....

[Dazzler]

As much as I am a big fan of Hyundai, they are big enough and ugly enough to look after themselves now.

As their prices get closer to the opposition they need to tighten their quality control a bit and lift their after sales service standards.

Mazda in particular might start beating Hyundai at their own game! 

[beerman]

I'm all for competition as long as it is fair. It seems as we remove tariff protection, countries have found a new way to manipulate the market.

In the same way I am against Virgin using its government owned international airline shareholders money as a bank to go up against Qantas.

Stand on your own feet...Certainly Hyundai and Kia are more than able to do this, as are Mazda, Honda et al.

[Phil №❶]

A classic demonstration of modern world economics determining which country will enjoy growth, employment, etc by manipulation of currency. All countries do it, but at the cost of our fellow man, unfortunately.

Where will it end