At this point, it’s pretty difficult to argue with Korean car makers and their sales strategy so it’s quite important to occasionally listening to them.
The one to listen to today is called John Krafcik, a chap you may have heard of because he’s the CEO of one of the best selling car companies of the year, Hyundai.
John Krafcik stepped forward and said it quite frankly. The companies that are going around and trying to outsell each other by having price hang low in the balance aren’t thinking right.
This seems to be weird as Hyundai is definitely making cars that are generally the cheapest in their class and they’re doing well.
The most important part is pretty simple to understand actually. Yes Hyundai’s cars are cheap but they aren’t competing to outprice anybody else.
This is where the other manufacturers go wrong. They make a car and then try to compete with the pricing of others instead of going for their own.
These price wars may seem like a good idea right now, especially for the customers but Krafcik says that they are short time thinking this.
The problem with price wars is that they’re ok in the short run but can end up very damaging on the long term situation.
Since Hyundai have been making low cost cars for years without any success and recently they’ve upped their game considerably without changing prices too much I guess John Krafcik should be listened to.