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Hyundai Increase Sales But Announce a Dip in Profits!

Monday 4th March 2013 15:40:14

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.  

Car Manufacturers decided at the beginning of 2013 to increase invoice prices

At the beginning of the year 2013, manufacturers together decided to increase invoice prices in order to allow them to compete with one and other whilst still being competitive and earning money. The move to increase invoice prices also cancels out the fluctuation in exchange rate which is important for the companies out there currently declaring a loss as well as the companies who are earning a lot will earn a significant amount more. Hyundai and the rest of the manufacturers will hope to see a change in fortune in the way of profits as they look to achieve certain company goals and break records in the way of all sales, production and profit in the years to come.

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