Hyundai aims for long-term steady growth, customer focus

Detroit: Capacity constraints would slow Hyundai's US growth in 2012 from the breakneck speed of recent years, the head of the South Korean carmaker's US operations said.

"Our choice is to grow more slowly in 2012 and to focus our efforts and energies on building customer satisfaction," John Krafcik told the Financial Times. "The idea is that in 2012, we're planting seeds that will ensure the long-term success of the company and long-term sales growth."

Krafcik's remarks echo comments made by Chung Mong-koo, Hyundai's chairman, projecting worldwide sales of 7 million units this year, up from 6.6 million in 2011 but a slower rate than in previous years.

Hyundai wants to avoid the mistakes made over the past decade by some carmakers. General Motors and Toyota were hurt by putting the emphasis on volume rather than quality in their quest to be the world's top-selling carmaker.

"We should lay the groundwork to become a global leading player by firming up management," Chung said. Hyundai's US sales surged by 20 per cent last year, more than double the overall market increase. The Koreans owe their success in North America to eye-catching designs and imaginative marketing.

"We like to say if the industry is moving to the right we'll look to the right, but we'll probably look more to the left and see if we can find some different approach," Krafcik said.

In its latest initiative, the group had announced at the Detroit auto show that it would offer a lifetime battery replacement guarantee for its hybrid models.

— Financial Times