Hyundai profits up 37 percent

July 29, 2011 12:00 AM

Hyundai has reported profit growth of 37 percent for the second quarter of 2011, with the company taking in $2.2 billion.

Bloomberg reports that the South Korean automaker has seen sales rise considerably as its Japanese rivals struggle with production slowdowns. While Nissan, Honda and Toyota have all faced shortages of their most popular models, Hyundai has actually increased production over the past few months to take advantage.

The result is the $2.2 billion profit gain, despite an unfavorable exchange rate for the South Korean won. During the same period last year, Hyundai made $1.6 billion, meaning this year was a 37 percent increase.

"Hyundai's significant growth in sales volume has been enough to offset the recent strong performance of the won," Cho Soo Hong, an analyst at Woori Investment & Securities in Seoul, told Bloomberg. "The company will face tougher competition in overseas markets as Japanese automakers production is returning to normal."

Models like the Hyundai Accent and Elantra have sold quickly thanks to their excellent fuel economy at a time when gas prices are still high.

One of the other big drawing points of Hyundai vehicles is their long warranty, up to 10 years or 100,000 miles, which covers things like brake service and repairs.  

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