Here is how foreign companies dump their cars into our market to kill our auto companies

[NNN0LHI]

They appear to be taking a huge loss on every vehicle sold here in America if the going price for one of these is 40% higher in the country it is built in. This is predatory trade practices. Not fair trade practices.

I also remember hearing on one of the cable news shows recently that if a Korean citizen purchases an American built car he had better be prepared to have his taxes audited.

Don

http://asia.news.yahoo.com/080807/4/3nao3.html

Thursday August 7, 4:49 PM

S Koreans Reimport Hyundai Genesis From Cheaper US Market

SEOUL, Aug 7 Asia Pulse - When Hyundai Motor Co. (KSE:005380) debuted its new rear-wheel drive Genesis luxury sedan earlier this year, executives there were hoping to find a way to penetrate the luxury auto segment of the United States.

Nearly seven months later, however, Hyundai is facing a new headache at home as South Korean consumers have become increasingly aware of the fact that they have to pay 40 per cent more for the Genesis sedan than American consumers.

Hyundai, which controls over 75 per cent of the domestic market along with its affiliate Kia Motors Corp. (KSE:000270), sells the 3.8-liter Genesis for 58.3 million won (US$57,000) in Korea, whereas in the U.S. it sells for US$32,000.

[BelgianMadCow]

1. Sorry, but I think it only shows they are gouging their own market

why would they sell at a loss in the US at all?
They just use their monopolistic market share to set the price high... :shrug:

[aquart]

4. Like our drug companies gouge us?

[flvegan]

2. Market dictates price.

What does it cost to build the Genesis? Try to sell a Hyundai/Kia in the US for $57k and prepare to be laughed at.

[kristopher]

3. I think you need more information before you can assert "dumping".

Dumping is one possibility, but the WTO monitors such actions so I would be surprised if that is the actual explanation. Another possibility is that S. Korea is imposing high taxes on domestically produced autos as a means of discouraging their use; it wouldn't surprise me if, because of fair trade laws, they are banned from taxing imports. TFor example, the price of gasoline is jacked up to triple the level of US gasoline for that reason.

The country is small and suited to mass transit so the government uses tactics like this to push people away from autos and into public trans.

[DS1]

5. I'm guilty of buying the better product

I bought a 1997 Mitsubishi Eclipse Turbo in 1996. The other option was an Eagle Talon, which was Chrysler's take on the model. The Chrysler version, aka the Eagle Talon looked like ass, and had less standard equipment. So far, it's had it's problems, but I love it to pieces.

I recently rented a Chevy Cobalt in Arizona to attend my brother's wedding, and one day while driving all the instruments went dead on me. I had no idea how fast I was going, what my fuel level was, etc, etc.. I was suddenly driving a car that wouldn't pass any tests. I brought it back to the closest rental agency, and got a Grand Am in return, which I loved.

GM can make some cheap cars, but come on! Don't make them so cheap that the instruments fail mid-trip!

[silverojo]

7. You're judging a product line by a RENTAL car?

Do you realize how much abuse those cars take? And, having lived in AZ for decades, I can tell you that AZ is a lot harder on electrical systems, batteries, etc., than most areas.

Frankly, you were lucky that one of the tires didn't explode from the heat. (I'm not exaggerating--that really happened to one of our vehicles, that was PARKED.)

We have a GM vehicle from 1996, which has had no major repairs done thus far. I'm not saying that will last forever, but 12 years with nothing more than routine maintenance is a pretty good record.

[DS1]

11. This car had under 10,000 miles on it

so yes, I'm judging it. Its electrical systems just died. So fuck it.

[Ian David]

6. I'm sorry, I'm still giggling about the concept of a luxury car by Hyundai. n/t

[flvegan]

9. Have you seen Top Gear's "Cars from the Pacific Rim" episode?

Hilarious.

[wtmusic]

8. Taking a loss doesn't necessarily follow from the facts.

They could very well have a smaller profit margin in the US, where the largest car market in the world is much more competitive.

[madrchsod]

10. this is nothing new for south east asia.

i wondered how they could sell this car so cheap in the usa. it really is a fine car.