Hyundai’s Interest in Selling Full-Size Trucks
Jason Lancaster | May 14, 2010 | Comments 29
PickupTrucks.com, the best truck site on the Internet, uncovered evidence that Hyundai is quietly investigating entering the North American full-size truck market earlier this week. According to Reuters in Korea, Hyundai approached Chrysler earlier this year about partnering to build a Hyundai version of the Ram 1500. Evidently, Hyundai is interested in becoming a “full-line” automaker.
This is what a Hyundai version of the Dodge Ram could look like.
The question is, why would Hyundai consider such a thing?
One of the rules of pricing is that you make more money on things that cost more (generally speaking). $30k pickup trucks typically have more dollars of profit than $12k economy cars, which is why every major automaker (except VW-Audi) has an entry in the full-size truck market.
Let that sink in for a moment – Honda, Nissan, Toyota, Chrysler, GM, and Ford are 6 of the 8 wold’s largest car companies, and each of them currently sells a full-size truck (OK, the Ridgeline isn’t really a full-size, but Honda calls it a full-size). VW doesn’t have a full-size currently, but there’s talk of bringing the Amarok to the USA (a mid-size truck similar to Toyota’s Hilux)…and that brings us to Hyundai.
Hyundai recently became the world’s fourth largest automaker, and based on that statistic alone the fact that Hyundai doesn’t offer a pickup truck seems like a glaring omission. Toss in the potential for profits, and it seems like a no-brainer for Hyundai to start selling trucks tomorrow.
The Fallacy of Offering A Full Line
Hyundai’s interest in selling pickups isn’t limited to the potential for profits – they’re also looking at the opportunity for growth. Many automakers believe in a customer who is so loyal that they want to buy all their cars from the same company. Since many of the people who own a Hyundai product also own a truck from a competitor, Hyundai sees an opportunity to make an additional sale.
If this idea seems overly simple, it’s because it is.
Consumers are certainly loyal to brands – truck customers especially so. Toyota and Honda have had a dominant presence in the car market for the better part of two decades, yet neither automaker has been able to leverage their success as CAR companies into success as TRUCK companies. Satisfied Honda and Toyota customers, despite their loyalty, also seem loyal to Ford, GM, and Chrysler when it’s time to buy a truck.
Indeed, despite offering a truck that is in many ways equal or superior to it’s competitors, the 2nd generation Tundra has struggled to maintain market share. Toyota’s success as a car company has been second to none for a very long time, but it hasn’t been enough to push the Tundra over the top. Consumer loyalty to domestic trucks is incredibly strong.
Of course, this isn’t to say that Hyundai couldn’t sell a few thousand re-badged Rams. However, for reasons not listed here, Chrysler probably isn’t going to offer Hyundai a shot at white-labeling their most important piece of inventory. If Hyundai wants to become a truck manufacturer, they’re going to have to follow in the Tundra’s footsteps…which isn’t an easy path to follow.
Filed Under: Auto News
Congrats, That pic is the scariest thing I have EVER seen. I have no issue with Hyundai climbing into the truck market. I think they are making the EXACT same mistake they made when they came into the US market in the 80’s. They are taking someone elses crappy vehicle and rebadging it as their own. If you are trying to live down a questionable quaility image then steer clear of automakers with QUESTIONABLE QUALITY while looking to badge engineer a new vehicle for your line. I just don’t think Dodge is ever a solution to your problem. At least now it isn’t a viable solution, Maybe in a few years.
I’d be more than happy to see Hyundai enter the market, but not on the basis of using Chrysler. I would buy a Dodge if Hyundai came out with this truck and I was considering it. It’s not like I’d be proud to tout that logo or brand….so not sure where this is coming from although it makes sense to broaden their line-up. Hopefully they’ll be smart and do some more research. I don’t think consumers are chomping at the bit for a new entrant and there’s so much going into the fuel ratings over the next few years this could be more of a headache to Hyundai than a benefit of increased revenues/sales.
Hopefully Hyundai will learn from Toyota’s hiccups. There is only one company who’s quailty is under question recently, I don’t think it was Dodge.
I guess we can now call it the Hyundai Titan since Chrysler owns the name. Is there Greg?
Refrigerator! I have no idea what he just said!
Greg referring to you quip about quality and who you were directing that to.
Hyundai should go for a mid size truck to start off with. Something like the Ridgeline, tacoma, or Colorado.
Greg was trying to make a under powered quip at me but failed like a (Insert any Chrysler vehicle save for the HD line of Rams). It isn’t that the Ram line is bad per se, it is that it isn’t on quality par with ANY of the rest of the full size competition. I have 5 close friends/ family which purchased Dodges near the time I purchased my truck. I also have 3 friends and 2 others people I know casually who purchased Tundras. OF those 10: 4 of the 5 Tundras are still being driven by the original owner, the 5th one was totaled. 4 of the Dodges were traded in, 2 for Chevy’s, 1 for a Ford, and 1 for a Titan. All of them had serious issues with quality. The one not traded in…..it is a HD diesel. and oddly enough I find the quality in it to be excellent. The Dodge HD and the 1500’s are completely different beast.
Dodge has SERIOUS quality issues with their half ton trucks. the problem is that expectations are set low for Chrysler. the REAL shock with the Issues in the Tundra is that there ARE issues. The bar was set so high that this was bound to happen.
Maybe Jason should update the part that says “Please comment below” to “Relevant post related comments please”.
Jeremy – that is some interesting stuff on the 10 truck owners…and I never thought to question whether a truck line’s gas vs diesel would have such vast differences in quality. Cool to know.
Honestly, I’d still like to know who Hyundai plans to target if they make this move – their current customer base or the actual truck market?
All excellent comments and agree on all of them posted. Hyundai will never be good in the full size truck market since brand loyalty is strong especially in the truck market and I suspect most Hyundai car buyers will not opt for that ugly re-badged RAM with a wimpy, slopping front hood. More along the lines of mid-size to compact pickup would be much better for them to do and will sell much more than a full size truck would. Honda learned their lesson with the Ridgeline and so will Hyundai if they go thru with this.
Jeremy, I understand how 5 of you friends and family chosing another brand other than Dodge makes a compelling arguement for the quailty of Dodge vehicles. Well really I don’t! You could be full of shit for all we know. Do you know 5 people, or would they claim to know you? How do we know that they are not mentally challenged? Basically that holds no creditbility, unless you work for ACORN. Do you work for ACORN?
So what your saying by using the actions of “5 family/friends” is that Dodge has issue far worse than the ones listed below:
-Vehicles not road worthy due to extensive frame corrosion within 100k.
-Recalls, way to many to list!
-VVTI spring issue, do Dodges has to have their engine torn down within days and miles of purchase for extensive maintenance.
-Paint, Toyota sure does have some really good thin paint, that would be sarcasm.
-Bed bounce, Toyota has mastered this art so far that little Timmy can’t ride in a Tundra on certain roads, I he does the parents are charged with child abuse.
-Iforce oil leaks, a lot of owners talking about it. But what do they know!
-5.7l water pump known to leak at high rpm’s. That would be the iforce again!
-Tailgate, its there for looks. Dont try to use it! Toyota published a memo about it, basicly told the owners there is no standard for tailgates, they are not going to do anything about it and stop complaining!
-Recalls again, but this time they don’t tell you about them!
-Dashboard voids that shrink, Toyota says its a new cup holder!
-Electronic issues, how can you be from Asia and make that bad o electronics? Dont go there midnight rider!
-Transmission, don’t worry about those extra parts. Oh wait we need those rumble strips!
So with all this being said does you 5 friends have any creditable issues they would like to propose to the list of Dodge issues? The list of Toyota issues is very small compared to the actually owners complaints, see 2007 issues on this site for more and other forums.
Greg, I could drive all 5 of those people through your trailer park and you still would cry like a lonely cat so, Whatever, I have the truth, you have a case of whineyitis. You are a troll.
And to answer your redneck checklist:
Yes, Yes, Yes, Yes at least toyotas stays on the vehicle,Yes my kidneys are still recovering, Yes name a part not leaking something on a Dodge, Yes, no dodge makes great tail gates, Yes, yes dodge dashes that just fall off or curl up ring a bell?, yes truck would just die for no ryhyme or reason….dodges reply……owner must have done something to the truck with 4000 miles on it/ it was the ecu….they replaced it and it happened about 1000 miles later….he traded it in on a Chevy, Yes I was in a Dodge when the tranny EXPLODED.
So, Dodge makes a better Tailgate that works great. You proved my point, Thank You
PULL!
Also, you forgot to mention Stuck accelerators, BAd Floor mats, Demonic Possesion, Unexplained rapid acceleration, Micheal JAcksons Death, Global Warming, Yugo, Fiat, glacial melt, inbreeding, tooth decay, Intestinal Dislention, the fall of GM, The Rise of GM, Harmonic Dissonance, The Ford Pinto, and Explosive Flatulance.
If you are going to make a list please make sure you include all the evils toyota is blamed for.
🙂
Jolly good show Jeremy. Troll he is…..
Great Jeremy I live in Alabama. The state tree was recently changed to the Tundra, seeing how they where recently found on cider blocks in trailer Parks.
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On the bright side Toyota America is stimulating the economy one recall at a time!
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Mickey, buddy. Wheres the love?
See, and Deforestation too.
Jeremy – Had a friend photoshop a Genesis and a Ram just to see what it would look like…no idea if that would be the direction they would go in. Just seemed interesting (albeit ugly). I bet Hyundai’s team would do a better job.
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TXTee – I agree with both of your comments – Hyundai doesn’t need to participate, and the comments would be more interesting if they stayed on topic.
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Steve – That makes sense on the surface, but a lot of analysts seem to think the mid-size truck is disappearing. Ford, for example, isn’t keeping the Ranger alive despite
the fact it sells better than a lot of Ford’s lineup.
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greg – The Tundra’s quality isn’t the topic – the POINT was that Hyundai’s industry quality ratings are typically higher than Dodge’s (substantially higher, in fact), and that re-selling a Dodge might have a negative impact on their overall rating. Consumer Reports, Edmunds, JD Power, Harbour…they all agree that Hyundai makes a better vehicle than Chrysler. They have for years.
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As for your point about the long list of Tundra problems, you should note: There’s no “Ram Headquarters” website that comprehensively covers the Ram the way that we cover the Tundra. If there were, it’s entirely possible the list of Dodge issues would be just as long or longer. All the major industry quality studies say that Chrysler’s quality is lower than the rest of the industry.
Ok so it had nothing to do with the Tundra. Then could you please explain this comment ”
“If Hyundai wants to become a truck manufacturer, they’re going to have to follow in the Tundra’s footsteps…which isn’t an easy path to follow.”
To me (granted I haven’t been in the autoindustry for 9 years detailing and selling cars) it seems like one was saying that the Tundra has set a higher standard to follow but for who to follow. Hyundai, correct.
And now we have this comment which makes you think that when one says Hyundai entering truck manufacturing they mean Hyundai/Chrysler.
“According to Reuters in Korea, Hyundai approached Chrysler earlier this year about partnering to build a Hyunda version of the Ram 1500.”
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Dodgeproblems. Yes that’s the name of the site that lists the issues per MY and model.
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I dont think Hyundai, Hyundai/Chrysler, Hyundai/who ever really wants to follow in the footsteps or standards Toyota has set before them. No one in their right mind would!
Greg apparently you would. Why else you keep coming back for more. I’m glad you know where your problems are, but like Jason mention this is a Tundra website. Jason has mention the issues Toyota has. We don’t hide them here but you do for your manufacturer. You won’t admit your shortcomings. Until then you will always be a failure.
I was asked to be postive by Jason. So I’m. I was just asking to clarify what was meant.
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Now for the this is a “Tundra website”. Lets take the recent entries for example, five maybe six are specifically towards Toyota/Tundra out of ten entries. The 2 of the others are other brand specific with the others open to anything. Do you not want posts from other people. People complain about “trolls” but talk about every brand then wonder why there are people here that support other brands. You make comments about other brands as jokes and disrespect but don’t do it about Toyota or point out their short comings. If You do that your wrong. If you don’t want other brand owners veiws don’t talk about other brands, funny how that works!
Mickey please try and be positive. You may want to think before calling someone a failure, is that appropriate?
greg – I think the article explains that comment pretty well – Hyundai is likely going to struggle to sell a full-size truck, just like Toyota has. I don’t understand why you’re trying to use this article to make a point about Toyota. I think we all know that you dislike the brand.
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As for comparing this site to DodgeProblems, there’s a big difference between waiting for people to complain and going out and digging up news.
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Mickey – Greg’s personal shortcommings aren’t the topic here – I think you meant to say “Dodge fans won’t admit their vehicle’s shortcommings.” 🙂
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Greg – I’ve asked politely for you to tone down your comments, and you’ve responded less than genuinely. Please respect my wishes if you would like to continue commenting here.
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TO ALL COMMENTORS: Let’s all try and refrain from personal attacks. I myself am guilty of this, and if you find that I’m breaking my own rules, I want you to call me out. My goal here should be to talk about things without making enemies.
Lmao, how much more do you want my tone adjusted? Could you point out where my tone was inappropriate?
Greg – I don’t think any explanation is required. As I have said before, you are welcome and encouraged to comment here. All I ask is that you do so with genuine respect.
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Incidentally, since you’ve referred to my experience here, why not tell us all what you do for a living? Do you work for Ford or a Ford dealer?
Respect, the detail salesmen jab finally got your attention. Now how do you think that family felt reading the disrespectful comments posted here about their loved ones? Poking fun at a Dodge every chance you had, someone bought them and loved them. So why make fun of them? It sucks when people do make fun of something you hold dear, hit you when your down. By the way i really dont care about dodge but why pick on them? You think your job is the berries, good I’m glad! But you don’t have to make fun of others to get your point across. This is your site and you set the tone, get what I’m saying. Doesn’t matter if the intent was meant to be good if it was perceived bad. This site has hit everyone else when they have been down and now asking for respect. Its earned not given! If you do something ignorant I fully believe its open game, case in point someone saying Silverado are so bad because they are 75% made in the USA, did he relize Ridgeline was 70%. He was basicly saying everything made in the USA was junk while be boosts about how good the ridgeline is but 70% made in the USA. He didn’t think before opening his mouth. You set the tone. Well I have spoke the word and I’m done here its up to you to help fix the world we are dealing with.
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I’m a mechanic and have been for over twenty years on heavy equipment. I have vast experience of dealing with engineers, being a floor supervisor, overseeing production and testing equipment that we build before pushing to the public. I have not worked for Ford and they are not on the wishlist for Christmas. If I didn’t need a vehicle I would rather walk. $50k for a vehicle these days, we are all being taken for a ride!
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5 dollars say you delete it!
greg – I’m sorry, but I think there’s a big difference between occasional digs at Dodge (which, I’ll admit is a bit of a hobby of mine) and digs at individuals. I’m not perfect that’s for sure, but I’m trying. If I’ve offended anyone personally with my comments (and I’m sure that I have at some point), then I apologize. In fact, I’ve never hesitated to apologize when called out.
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As for earning your respect, I don’t need it. All I need from you and anyone else who participates here is a modicum of respect for one another. I don’t do this for the ego boost – I do this because it’s fun.
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So, in your experience as a heavy equipment tech, who makes the best half-ton truck?
No body does that’s the irony in all of this. There are trucks good for a specific purpose but no one has the absolute best all-around truck.
ha ha….thats gastley looking!
greg – I think that’s true. Still, if I had to pick ONE truck to do everything, to me it’s a split between the Tundra and the F150. The Tundra’s power and resale value are nice, but the F150’s numerous configurations and options are nice too. In my opinion, the trucks are nearly equal in all other respects…but that’s an argument for another post.