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Hyundai Has Come A Long Way From 'The Brink Of Oblivion'

Hyundai's marketing has been very convincing in two ways, writes Helen Coster. Long term, it has overcome consumer fears about the quality of its cars. Short term, it has reassured them about buying a new car during a recession.

Hyundai was "on the precipice of oblivion," a decade ago, according to Finnbar O'Neill, the former president of Hyundai Motor America. But O'Neill initiated the 100,000-mile, 10-year warranty program that not only garnered attention and respect from consumers, but also proved to be financial boon. The car was so reliable that Hyundai was able to expand with money it had earmarked for the repair program.

Hyundai launched its first luxury car, the $33,000 four-door Genesis sedan, last July; automotive journalists subsequently named it North American Car of the Year. In January, Hyundai promised folks that if they lost their jobs, they could walk away from their cars and car payments without hurting their credit; other car companies scrambled to play catch up. And an attention-grabbing summer promotion guarantees buyers a year's worth of gas at $1.49 per gallon.

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