Hyundai Motor trying to erase poor image in U.S. with new ad blitz

Posted on : 2007-09-12 10:36 KST Modified on : 2019-10-19 20:29 KST

South Korean automaker Hyundai Motor Co. is trying to shake off its "dirt-cheap" image among American drivers with new advertising campaigns in the world's largest auto market, according to company officials on Wednesday.

After initial setbacks over poor styling and unreliable durability in the early 1980s, Hyundai vehicles have raised their profile in the U.S. with generous warranty conditions and major efforts to boost quality.

For now, Hyundai's ambitious goal in the U.S. is to compete with Japanese rivals such as Toyota Motor Corp. and Honda Motor Co.

in the tier of high-quality, moderately-priced performers.

Driven by recent growth in sales of the Sonata sedan and Santa Fe sport-utility vehicle, Hyundai ranks as the world's sixth-largest automaker along with its affiliate Kia Motors Corp.

To upgrade its brand awareness, Hyundai's U.S. affiliate, Hyundai Motor America, changed its advertising slogan this week to: "Think about it." Hyundai's previous ones included "Value for the money" and "Smart buy," considered a means of attracting mostly young buyers.

"The new ad campaign is aimed at smashing Hyundai's existing image," said an official at Hyundai Motor in Seoul, asking not to be named.

The campaign is the first series designed by Goodby, Silverstein & Partners, which was hired by Hyundai's marketing and ad agent in the U.S., the official said.

Last year, Hyundai sold 450,000 vehicles in the U.S. and expects to sell 550,000 this year.

However, the automaker's corporate image has been tarnished by trials over the past year of Hyundai Motor Chairman Chung Mong-koo on charges of embezzlement and breach of trust surrounding a slush fund scandal.

On Thursday, an appeals court suspended the three-year prison sentence handed down at the previous trial, with the presiding judge saying that "Chung's imprisonment would put the national economy at risk." Chung was convicted in February this year of embezzling some $100 million in company funds to bribe and lobby government officials. Despite the suspended jail sentence, the court upheld the convictions.

"The court's decision is contrary to the legal spirit and social consensus toward harsh punishment for anti-social economic crimes like embezzlement and the establishment of slush funds," South Korean English-language newspaper Korea Times said in an editorial on Friday.

On Monday, prosecutors filed an appeal with the Supreme Court over the terms of the appellate court's ruling.

However, the top court can only rule on guilt or innocence, meaning that the suspension of Chung's jail sentence won't be altered.

Concerns over a recent subprime mortgage crisis in the U.S.

have also sparked worries over the outlook for Hyundai's sales in the American market.

Early this month, Hyundai slashed its U.S. sales target for this year by 8.1 percent, citing weakening demand in the wake of the U.S. market turmoil.

SEOUL, Sept. 12 (Yonhap)

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