Saturday, April 4, 2009

My response to one of the commenter at Business Week

This just how people are.


You are making assumptions based on what?  Do you have a data to show that shows Hyundai cars are piling up at the ship yards?  

According to Automotive News, Hyundai has 79 day supplies.  In comparison, GM has 161, Chrysler has 151, Honda has 151, and Toyota has 91 days of inventory. [1]   

You state that "Hyundai dealerships were closing all over before this recession."  Can you name three dealerships that were closed before the recession?  If they were closed down, closings were due to other reasons.   The Hyundai sales' figure hasn't declined in relative to its past.  Thus, in order for some dealerships to go out of business is if their sales number were significantly lower than the past to the point where the stopping the operation was more beneficial than incurring loss within some time period. [4,5] In fact, this very article states that the figure -4.8% is comparison to the all-time-high figure of last year.

Also, if you were wondering if Hyundai is using the rental fleet number into their sales figure, why don't you find out?  You have a doubts whether people are buying Hyundai cars?  If you had any curiosity, you would have known that Hyundai sold more Genesis (1,626) than Acura sold its RL, 161. [2,3] I can stipulate that People are buying Hyundai through this fact alone instead of your assumption that they are renting these cars.  

So many people know so many things that aren't so.  People just dream up things as if 1 + 1 = 5.  The statement made by "LA Guy" isn't just a simple and naive misunderstanding or some other factors, but it is close to being an illiterate or delusional.

[1: automotive news: March 2009, http://www.autonews.com/article/20090302/ANA03/903020365/1178 ]
[2: Hyundai April 2009 Sales number,
http://www.hyundainews.com/Corporate_News/Sales_Releases/04_01_2009_3052.asp ]
[3. Acura April 2009 Sales number, http://www.theautochannel.com/news/2009/04/01/455476.html ]
[4. McConnell-Brue's Principles of Microeconomics, 0072875615  Page 178. "Shut Down Case" ]
[5. "Economics, European Edition." "Short Term Production Decision" 0716799561 p.223]

No comments: