Hyundai Motor Co.’s U.S. CEO John Krafcik says that the South Korean automaker’s inability to build more cars for the North American market is losing it sales in the U.S.
Selling cars produced by factories that are already operating at full capacity, Hyundai was only able to increase its sales by 1.9 percent in the U.S. in the first six months of the year. This is well off the industry-wide jump of 8.4 percent.
Krafcik is not pleased by the current situation. “We have tapped everything at this point. There’s nothing left,” said Krafcik before he added, “I don’t know that there’s another example in another industry, in our industry, where a company that so clearly had growth potential decided to pass, to make sure that everything is OK, and to build stronger operating systems so that in five or 10 years there would be a stronger company at a higher volume level.”
Industry observers agree that Hyunadai’s inability to fully meet demand is troubling. Jesse Toprak, senior analyst at TrueCar.com, said, “Not being able to participate fully in that growth and capturing market share cannot be a good thing. At the end of the day, if you’re not selling cars, you’re missing an opportunity.”