Exactly how are Kia and Hyundai related / organized?

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11-09-21, 11:51 PM

#91

Motorola

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Quote:

Originally Posted by EZZ

The original question was whether we should lump in Hyundai and Kia together in terms of sales and I still maintain they should always be reported separately and are still legally obligated to do so. I'm not disputing the current supplier/customer integration of the Hyundai companies with Kia but that situation is similar to the vendor customer relationships at Toyota and its suppliers. The companies may be intertwined but the success of Kia doesn't necessarily mean the success of Hyundai and vice versa....and the related stock value.

Of course, nobody is saying that Hyundai Motor Co. and Kia will have the same financial performance. But their financial decisions will always be intertwined due to the structure of HMG. If HMG wants them to make EV's, they have to make EV's. If HMG hands them certain platforms, they have to use those platforms. They can individually control their brand image and marketing and some of the nuances of their products like suspension tuning, but not much else. This mirrors the relationship between Dodge and Chrysler in the 2000s under DaimlerChrylser.

Quote:

If Genesis fails and posts enough losses, Hyundai stock will suffer but why would that hurt the Kia stock and brand? In fact go look at the 1yr stock price performance of Hyundai vs. Kia and Kia has outperformed the Hyundai stock noticeably (47% vs. 10%) and you say they are completely the same? Its simply not true judging from a simple look at the stocks.

If Hyundai sees a loss, then that will affect Kia by proxy of HMG, because less profit = lower development costs = worse vehicles across both brands. Therefore it is in the best interest of both brands to be successful. That's why their vehicles try so hard to differentiate themselves between the two brands despite having almost identical underpinnings- appealing to wider demographics results in both more sales and a better understanding of what people want, which means more profits that go to HMG, which means better products for both Hyundai Motor and Kia in the future. It is in the interest of Hyundai and Kia's cars to "compete" with one another because they both benefit from it.

Last edited by Motorola; 11-09-21 at 11:54 PM.