In US, Hyundai Gets Clever; Samsung, LG in Battle
By Oh Young-jin
Staff Reporter
Korean conglomerates, pressed by the global economic crisis and slow domestic demand, are fighting to survive in the U.S. market.
First, Hyundai Motor America (HMA) is doing some clever marketing with a kind of ``buyback'' scheme offering American buyers the chance to buy a Hyundai and return it, if they lose their jobs and cannot afford payments.
Basically, the Hyundai scheme covers depreciation costs for up to a year so the troubled buyers will be able to return their cars, if they can't continue their car payments due to layoffs or other ``legitimate'' reasons stipulated in their contract. In dollar terms, it amounts to $7,500.
Hyundai-Kia Automotive Group, the parent of HMA, said that the credit for this scheme, although its success has yet to be proved, goes to HMA.
``It's their decision,'' a senior group executive told The Korea Times.
The official compared the scheme with the 100,000-mile warranty that helped Hyundai take hold in the U.S. market. ``It waits to be seen how attractive U.S. consumers will feel.''
The Hyundai official, however, said that the same deal will not likely be offered to Korean consumers. ``We will stick to conventional marketing,'' he said, citing depressed second-hand car markets.
The reason for different marketing is obvious. In the U.S., Hyundai is a minnow with its share stuck in low single digits. In its home market, it is the dominant player that often sets the rules.
Meanwhile, convergence is the latest battlefield for two Korean rival electronics makers ― Samsung and LG.
An AFP dispatch from Washington said LG is to market ``broadband HDTVs'' embedded with streaming software by Netflix, a giant online movie rental company, this spring. This allows the viewers to tap into the Netflix archives and enjoy movies on demand without external devices.
Another report talks about the tie-up between Samsung and Yahoo for an HDTV that can be Internet-connected through the American company's software.
The two new products are apparently being introduced as part of preliminary sparring between the two Korean tech firms in the lead-up to the Consumer Electronics Show (CES) in Las Vegas this week.
The two are coming to Las Vegas with their roles reversed.
For Samsung, it is expected to report a dismal performance for the fourth quarter of last year during an investor relations gathering later this month. The outlook for the first quarter is as dismal as the previous one.
Despite its global market blues, LG has one consolation ― beating Samsung in terms of operating profit for the first time in a decade.
It remains to be seen how their different moods will affect their showing in Las Vegas.