Hyundai Profits Suffer From Slow U.S. Sales
Hyundai's sales rocketed a few years ago when the all-new Elantra and Sonata cars debuted with exciting new designs and improved fuel economy. But now Hyundai is experiencing a slowdown in the U.S. Although increased sales in China and Korea helped boost the automaker, the company's net profit last quarter was stagnant from a year ago. It earned $1.86 billion during the recent three month period. At the start of April, Hyundai reported that its sales were down 2 percent in the U.S. since the beginning of the year. The Sonata, Elantra, and Genesis were some of the models that suffered the most. The company blamed poor weather for slow sales in the first half of March, but said it expected some gains in retail sales through April.But sales aren't the only factor. Unfortunately, Hyundai profits were also marred by a recent recall involving faulty brake switches, which cost the company $86.7 million. A strong won compared to the U.S. dollar made matters worse. A refreshed 2015 Hyundai Sonata is coming to market fairly soon, which should help revive sales for the brand. As Hyundai continues refreshing its lineup, it may pick back up where it left off. Source: Hyundai, Automotive News
General Motors posts strong income numbers for the first quarter of 2014.