Hyundai's Feb. sales in U.S. fall despite incentives

SEOUL, March 4 (Yonhap) -- Hyundai Motor Co., South Korea's biggest carmaker,
posted a 1.5 percent drop in U.S. auto sales despite generous marketing campaigns
and hefty ad spending, according to the company's statement on Wednesday.
Still, Hyundai fared better than its Japanese and American counterparts in the
world's largest auto market, where vehicle sales plunged to their lowest level in
27 years as the economic recession deepened.
U.S. auto sales plummeted 41.3 percent last month to 689,444 units, according to
Kim Hyung-min, an analyst at Seoul-based brokerage LIG Investment & Securities
Co.
Hyundai sold 30,621 units in February, compared with 31,090 units for the same
period last year.
"We're pleased to maintain our sales volumes on a year-over-year basis,
especially in an industry under this type of economic stress," said Dave
Zuchowski, vice president of Hyundai's U.S. subsidiary, in the statement.
Hyundai began offering a generous incentive program earlier this year that allows
U.S. customers experiencing financial difficulties to return their vehicles free
of charge.
Under the program, those who purchased a Hyundai vehicle but can't make their
payments due to layoffs, personal bankruptcy or accidental health issues can
return the vehicle within a year of purchase.
In addition, the South Korean automaker purchased a prime TV slot during the
Academy Awards after beleaguered Detroit rivals General Motors Corp. and Ford
Motor Co. withdrew their advertisements from the event.
Analysts say Hyundai is better positioned to weather the global economic crisis
because of its line-up of cheaper cars and the South Korean currency's weakness
against the U.S. dollar.
In comparison, Toyota Motor Corp. of Japan reported a 39.8 percent plunge in U.S.
auto sales last month. Honda Motor Co. logged a 38 percent drop.
With its Japanese rivals saddled by a firmer currency, Hyundai's market share in
the U.S. rose to 4.4 percent last month, according to Kim of LIG.
"To become a true winner, Hyundai Motor needs to prove that it can raise its
market share when demand begins to recover," Kim said in a research note.
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