TodayJanuary 24, 2022

Hyundai’s John Krafcik on capacity constraint problems on Driving the Nation

John Krafcik, CEO of Hyundai Motor America, talked to Lou Ann Hammond, CEO, Krafcik has been CEO of Hyundai since 2008, and is in a place other car dealers dream of being, 21 days on the lot and they can’t make cars fast enough.

What is the capacity constraint that keeps Hyundai from producing more vehicles? Hyundai owns their own steel company, so it isn’t the steel.

Does Korea’s union issues play a part in the constraint problems?

Production capacity, the sheer number of people to put the bit’s and pieces together is one reason. Hyundai will bring a third shift in their Alabama plant that produces the Hyundai Sonata and Elantra. That will give Hyundai another 60,000 unit’s of Hyundais.

The auto industry average for incentives is around $2,200. Hyundai says their incentives were $868 in August. They have crept above Ford and Nissan in retail sales on the car side. How are they going to continue this momentum with the capacity constraints?

Lou Ann Hammond

Lou Ann Hammond is the CEO of Carlist and Driving the Nation. She is the co-host of Real Wheels Washington Post carchat every Friday morning and is the Automotive, energy correspondent for The John Batchelor Show and a Contributor to Automotive Electronics magazine headquartered in Korea. Hammond is a founding member of the Women's World Car of the Year #WWCOTY, and board member of the Women in Automotive.