David Beidny's choice between a Japanese and South Korean car was easy: Hyundai Motor Co. gave him $3,500 in cash to make the purchase, a deal that money-losing Toyota Motor Corp. could ill afford to offer.
"I stopped by Toyota and I even sat in a Camry, but they were asking $4,500 more than the Hyundai I bought," said the 46-year-old computer graphics designer from Rockland County, N.Y., who purchased an Elantra. "Hyundai was cutting the best deal."
Japan, which barely emerged from recession in the second quarter, may see its expansion cut short as the exporters it depends on for growth cede business to South Korean rivals. Toyota is contending with a yen that has risen against all 16 major currencies in the past two years, including the dollar, euro and South Korean won, eroding profit and leaving little room for price cuts. The won's 22 percent slide versus the dollar let Hyundai give discounts and almost double its U.S. market share.