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Hyundai Announce Dip in Profits as Sales Increase!
The Hyundai brand has recently announced that they have seen a sharp dip in profits despite a massive increase in sales since the turn of the year. The Hyundai motor company consists of the two South Korean brands in the Hyundai base brand and the hugely successful in the UK, the Kia brand. The difference is thought to have come from the various fluctuations in the exchange rate from the dollar to the won to the pound etc. Profits do tend to disappear when manufacturers look to repatriate their foreign earnings back in the home country, which in this case is South Korea.
A strong Won exchange rate will make the South Korean goods such as the Hyundai and Kia models much more expensive to buy, but like all motor dealers this is not the case and will usually lead to a rise in the invoice price across the globe. On the other hand, the Japanese Yen has weakened which would make Japanese goods cheaper to purchase which will see a benefit in the purchase of Japanese models such as Honda and Nissan amongst others.
This will in turn boost the foreign sales and will boost the overall earnings for the countries leading manufacturers. When the Yen was strong, manufacturers such as Toyota and Honda did express their disappointment as they could not state the correct amount of profit they would have earned if their was no fluctuation in exchange rate. However, Tax Firm KPMG have announced a growth for all Hyundai, Toyota and BMW in the next 12 months as they look to increase profits as well as sales and market share.