When buyers purchased the first Korean cars imported to the U.S., during the 1980s, they assumed the build quality would be about as good as the established Japanese brands, but at a bargain price. Most were unpleasantly surprised to find they were not.
It's been a tough battle ever since for the Korean makers (Hyundai, Kia and Daewoo). Improving the quality, content, and overall appeal of their products was the only way to effectively compete and to overcome the bad reputation from those early inferior products. But it's a battle they appear to be winning in recent years, partly through rock-bottom prices (enabled by low labor rates), super-long warranties, and through increasingly competitive cars and trucks.
Hyundai and Kia have teamed up as manufacturing and marketing partners and together are biting off ever-larger chunks of the U.S. market, much to the dismay of domestic and Japanese competitors. Daewoo, essentially bankrupt due to bad management, has been bought by General Motors and is back in business building Asian-market cars and entry-level Chevrolets to compete with Hyundai and Kia here.
Author: Gary Witzenburg
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