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Sunday, September 18, 2011

European car execs fear Hyundai-Kia duo

European auto makers fear competition from South Korea's two biggest auto makers, once mocked for their low value and unimaginative design, while Chinese car brands are not seen as a threat, for the next few years at least.

Hyundai and its affiliate Kia earned high praise from rivals at the Frankfurt auto show, usually a chance for executives to shine the limelight on their own models.

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"They're a very powerful company and a powerful competitor, and they've come on a lot in the last three or four years," said General Motors Europe President Nick Reilly, who knows the two well, having run GM unit Daewoo in South Korea.

"They have caught up to being a very good, leading company."

Once viewed as a manufacturer of bland econoboxes that looked and felt cheap inside and out, Hyundai-Kia has addressed its design and reliability problems over recent years, making it a stellar performer even during the global financial crisis.

"We see Hyundai-Kia as a very serious competitor, since they build good cars, have a sound design, and are improving their quality," Volkswagen executive Christian Klingler told reporters.

ORIGINAL SOURCE

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