Both South Korean carmakers, Kia and Hyundai, have revealed that they are experiencing a sharp decline in profits for the last quarter. This is despite of the fact that Kia and Hyundai are selling so much better here in the US.
Market analysts shared that the culprit is with the poor pricing of the vehicles from Kia and Hyundai. Apparently, the cars from South Korea are severely under-priced in this country. To make matters worse, cars from Kia and Hyundai are quite expensive when in poorer countries.
Perhaps, both carmakers should re-model the pricing of their cars. Hyundai, in particular, should stop offering the brand-new Sonata at 0% for 75 months. As for Kia, they need to stop making 3 payments for consumers that is offered with the Optima.
Once this issue is addressed, both Kia and Hyundai will definitely sales dipping slightly but profits increasing on a more stable basis.
