Reports: VW Has Hyundai In Its Sights

Reports: VW Has Hyundai In Its Sights

The Truth About Cars is reporting that Volkswagen executives are turning their attention towards Korean auto giant Hyundai, after comments made to the press by two Volkswagen managers came to their attention.

According to a translation by TTAC’s Bertel Schmitt, VW CEO Martin Winterkorn spoke admirably about Hyundai in a German magazine, stating “I have the most respect for Hyundai. The Korean currency is low (as opposed to the Japanese …) and quality is high. “Hyundai now knows how to build good cars.”

In a seperate interview given to the Korea Times, Volkswagen honorary chairman Carl Hahn admonished Korean automakers to stop selling their cars based on low prices, and instead focus on quality and value for money.

“It is a matter of evolution,” Hahn said. When you’re a new comer in the market, you usually have to be a little modest. You buy a market share with low prices. But then, of course, you will face a job ― to get out of this trap as you won’t be competitive due to not having enough money per car you make.”

It’s an open secret that government subsidies and currency manipulation help Korean automakers sell their cars on the cheap. But with quality and engineering equaling that of most mainstream car companies from Europe, America and Japan, perhaps Volkswagen is concerned that their standing in the market will be threatened by the rise of Hyundai and Kia.

[Source: Korea Times and The Truth About Cars]