While European car makers are becoming nervous about the prospect of restructuring, slashing prices and exporting headaches, the Korean car makers know they are likely to prosper if the Euro Zone breaks up.
While Greece still teeters on the brink of defaulting, car manufacturers in countrties like Germany, Italy, France and Spain fear the effects that the huge ammounts of unpaid debts will have on their own financial solvency. Even if a break up gives Germany back a stronger currency it will still be weaker than at the point it joined the Euro. Italy too have a ridiculously high interest rate to pay back on borrowed money and if it goes back to the Lira it may well have to reduce its prices of cars elsewhere in Europe. French and Spanish Manufacturers would also feel the pinch in their homeland as domestic production costs rise. Meanwhile South Korean brands, Kia and Hyundai could greatly benefit from the damaged economy in Europe as it would be much easier to penetrate the market and continue to grow at an impressive rate (Their joint share of European sales has doubled since 2003, to 5.1 percent).
