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Hyundai Motor In Brief

2010.03.02 00:00:00 No. 45


 Hyundai Motor in Brief

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group, which was ranked as the world’s fifth-largest automaker since 2007 and includes over two dozen auto-related subsidiaries and affiliates.
Hyundai Motor, which exported its first independently-made vehicle, the Pony, in 1976, now exports over one million high-quality vehicles ranging from sedans, SUVs, trucks and buses.
In 2009, Hyundai Motor sold about 3.1 million cars worldwide, up 11.7 percent from 2008.
Hyundai Motor, South Korea’s largest automaker, sold 701,469 cars in the Korean domestic market in 2009, reaching a market share of about 50 percent. Outside Korea, the company sold about 2.4 million cars in 2009 in over 193 countries through some 6,000 dealers.
Global Operations
Employing over 75,000 people worldwide, Hyundai Motor is implementing a new global policy aimed at localization. This includes product development, design, sales, marketing, and consumer services to satisfy local customers’ tastes as well as that of the global market.
Currently Hyundai Motor has five overseas plants in the U.S., India, China, Turkey and the Czech Republic. The company has plans to build two more in Russia and Brazil, respectively. Hyundai Motor today has a combined global production capacity of about 3.4 million units a year (Korea Domestic: 1.7 million / Overseas: 1.7 million).
Korea Production
Hyundai has three plants in Korea that have a combined capacity of about 1.7 million units a year. The plants are located in Ulsan, Asan and Jeonju.
The Ulsan plant is the world’s single largest automobile plant in the world. The mammoth-sized Ulsan complex sits on 1,200 acres and is Hyundai Motor’s main production plant comprised of five independent plants. It employs over 34,000 workers capable of producing 5,600 vehicles daily. The plant also has its own port where up to three 42,000 ton ships can anchor at the same time. The plant is the birthplace of the Korean automobile industry and is a self-contained facility that operates its own fire station, hospital and security vehicles. The plant is also equipped with cutting-edge facilities to protect the environment, such as a waste water and sewage treatment plant securing Hyundai Motor’s position as a green-minded company.
The Asan Plant, which mainly produces passenger vehicles for export, rests on 440 acres with a 4 million sq. ft. building that consists of production lines for machine press, auto frames, paint, assembly, engine and a materials plant. It is an entirely self-contained, independent automobile production complex that is capable of producing 300,000 mid- to large-size passenger vehicles annually.
The Jeonju Plant occupies a total of 317 acres of land and has 4.3 million sq. ft. in production space. It specializes in producing mid- to large-sized buses of 2.5 tons or more, trucks, and specialty vehicles. The Jeonju plant is capable of producing 125,000 units per year and in terms of the plant’s scale, it is deemed to be the world’s largest commercial vehicle production plant.
Overseas Production
In May 2005, Hyundai Motor opened a $1.1 billion plant in Alabama, the company’s first North American manufacturing facility, which is also its most technologically advanced. Hyundai Motor Manufacturing Alabama (HMMA), which has a maximum capacity of 300,000 vehicles per year, began operations with the production of the 2006 Sonata sedan. The plant started producing the 2007 Santa Fe sport utility vehicle in the spring of 2006.
Within one year, HMMA reached 10th place in the product quality category among 37 plants in North America. In 2008, HMMA was chosen as the most productive plant in North America in the Midsize CUV category, for its Santa Fe model. HMMA took 22.6 hours to complete a Santa Fe, one of Hyundai’s best-selling SUVs.
HMMA brings Hyundai Motor’s commitment to the North American market full circle. Since 2001, Hyundai Motor has invested more than $200 million in design and testing facilities throughout the U.S. With a $30 million design center in Irvine, Calif., a $60 million proving ground in the Mojave Desert in California, and a $117 million technical center in Ann Arbor, Mich., Hyundai Motor is able to bring vehicles to life from design, to testing and now to production, in the United States.
Hyundai Motor India (HMI), a wholly-owned subsidiary of Hyundai Motor, is the second-largest carmaker in India. Hyundai opened its second plant in India in February 2008, a decade after it began operations in the country. The US$1 billion new plant, which was completed in a record 13 months, doubles Hyundai Motor’s capacity in India to 600,000 units a year. The new plant is located within the same 525 acre plot in Sriperumbudur, in the state of Tamil Nadu, adjacent to the first plant.
The new plant is dedicated largely to the production of Hyundai Motor’s latest offerings in India — the i20 and the i10, winner of the most prestigious ‘Car of the Year’ awards from the leading automotive magazines and TV channels like Business Standard Motoring, CNBC-TV18, NDTV Car & Bike and Overdrive magazine.
Building the i10 (A-segment) and i20 (B-segment) cars for world markets, the Indian subsidiary is Hyundai’s de facto global hub for small car production. In 2009, HMI’s sales jumped 14.4 percent to 559,880 units from 2008. The subsidiary currently exports to 113 countries worldwide.
In 2009, Hyundai opened a US$25 million R&D center in HITECH City in Hyderabad, India. The new facility will enable Hyundai to respond even more quickly to changing customer needs across the world and will serve as an important platform for the development of compact cars.
In February 2008, Beijing Hyundai Motor Company (BHMC) set a record by surpassing one million units in cumulative production in just five years and two months, the shortest period among automobile companies in China.
Hyundai Motor opened its second manufacturing plant in Beijing in April 2008, two years after it began construction for the US$ 790 million facility. The plant, a 50-50 partnership with Beijing Automotive Holdings, doubled Beijing Hyundai’s production capacity to 600,000 units.
Beijing Hyundai began operations in China by producing Sonata in December 2002 and in 2003, its first full year of sales reached 52,129 units, making Beijing Hyundai China’s thirteenth largest automaker. Sales soared to 144,088 units in 2004 and by 2005, sales had catapulted to 233,668 units making Beijing Hyundai China’s fourth best selling brand. In 2009, Beijing Hyundai’s sales rose 93.6 percent to 570,000 units from 294,000 units in 2008.
Beijing Hyundai currently builds seven models: EF Sonata, Ling Xiang (NF Sonata), Elantra, Yuedong (China-exclusive Elantra model), i30, Tucson and Accent.
Hyundai Motor began operations at its Turkey plant, located in north western Turkey, from July 1997. The plant, Hyundai Assan Otomotive Sanayi Ve Ticaret (HAOS), was expanded in 2006 and produces the Accent and Matrix vehicles. Starting from May 2010, the plant will also add production of Hyundai’s latest offering, the i20.
The facilities’ maximum capacity is 100,000 units per year. In 2008, the plant sold 79,954 units, of which it exported 21 percent.
Hyundai Motor began construction of its 1.1 billion euro manufacturing plant in Nosovice, Czech Republic in April 2007, and began production in November 2008. Hyundai Motor Manufacturing Czech (HMMC), a fully-owned subsidiary of Seoul-based Hyundai Motor, will have the capacity to build 200,000 vehicles annually beginning with the i30 C-class five-door hatchback and later, a station wagon version, called Hyundai i30cw. In the second phase, an additional 100,000 units per annum of capacity will be added by 2011 to build a third model.
As part of its preparations to better serve the needs of its European customers, Hyundai Motor invested $50 million Euros in a European Design and Technical Center in Russelsheim, Germany which designed the i30 hatchback and estate wagon. In 2007, it opened a new European sales and marketing headquarters in Offenbach, Germany to better support local sales. The Czech plant is the final link in the chain providing Hyundai Motor will the full range of local capabilities to serve the European market from design and engineering, to production, marketing, sales and after-service.
Hyundai Motor in June 2008 began construction of its plant in St. Petersburg to establish a local production and sales base in Russia, which will be a stepping stone to expansion in the CIS and Eastern Europe.
Hyundai Motor plans to invest a total of 330 million euros in the plant, which is scheduled to begin production in January 2011. According to initial plans, production is expected to reach maximum capacity of 150,000 units a year by the end of that year. For the first year of 2011, Hyundai Motor plans to make new, small- to mid-size models strategically targeting the local market. Other models will be added according to local market conditions. The plant, which will include storage facilities and a shipping area, will be built on an area of about 2 million square meters. The actual area of the buildings and facilities will take up about 83,000 square meters.
Future cars
Hyundai unveiled its first Plug-in HEV concept car at the 2009 Seoul Motor Show.  Named Blue-Will by its creators at the Advanced Design Studio, the futuristic car targets 30 to 40 something single urbanites and young families with its highly unique character lines and detailed forms.
Promising an electric-only driving distance of up to 64km on a single charge and a fuel economy rating of up to 2.2 liters/100 km (106mpg), Blue-Will is a test bed of new ideas that range from the unique profile to drive-by-wire steering and touch screen controls.
Blue-Will, codenamed HND-4, is the fourth in a series of highly innovative concept vehicles to come out of the Namyang Design Center currently headed by Oh Suk-Geun, Executive Vice President of Design.
The Blue-Will concept is powered by an all-aluminum 152hp Gasoline Direct Injected 1.6L which is coupled to a Continuously Variable Transmission and a 100kw electric motor which is at the heart of Hyundai’s proprietary parallel hybrid drive architecture.  Wheels are turned by power coming directly from the gasoline engine, or the electric motor, or both together, as conditions demand.  This parallel hybrid drive architecture serves as the foundation for future Hyundai hybrids, starting with the YF Sonata in the U.S. 
Energy from hot exhaust gases is recaptured by a thermal generator which is fitted into the exhaust manifold.  The thermal generator then converts the heat into electrical energy to help power auxiliary systems.
Efficiencies are further improved by the specification of low-rolling resistance tires and low-drag brakes where special attention has been paid to the engineering of the brake pads and calipers.
2.4 Theta() II GDI Engine (2009)
To help meet its goals of environmental leadership, Hyundai Motor developed its first Gasoline Direct Injection engine, 2.4 Theta II GDI engine. With a compression ration of 11.3:1, this gasoline engine delivers 201ps@6300rpm and 25.5kg.m@4250rpm in its Korean domestic market specification.
Representing the biggest advance in fuel injection, an ‘80s technology that replaced the carburetor, GDI puts Hyundai at the cutting edge of engine design and management by achieving three seemly incompatible goals:  GDI lowers emissions while raising power output and improving fuel economy.  Prior to GDI, a gain in one area came at the expense of the other two.
Developed with a budget of 170 billion won over a 46 month-long research period, the new 2.4 Theta II GDI engine made its debut in January 2010 starting with the recently launched Sonata, beating the mid-size sedan competition to market with this exciting new technology.  GDI application will subsequently be expanded across the gasoline engine family and applied to other Hyundai and Kia models.
One serious limitation of conventional fuel injection is that as engine revolutions increase, the valve opening and closing times get progressively shorter, thus reducing the time available to inject fuel.  GDI avoids this problem altogether by positioning the fuel injector in the most optimal location, directly inside the combustion chamber to offer unparalleled precision.  With this shorter and more direct path, far greater control is attained over the combustion process: A high pressure fuel pump injects the fuel at pressures of up to 150 bar, in precise amounts and intervals.
R Diesel Engine (2008)
The R is the newest member of Hyundai's passenger diesel family joining the U (1.1, 1.4 and 1.6–liter), the A (2.5–liter) and S (3.0–liter V6). In its initial 2-liter edition, R generates 184ps and 40kg.m of torque.
The R–Engine benefits from the third generation common rail system developed by Bosch whose piezo-electric injectors deliver fuel at 1,800 bar providing an unprecedented degree of accuracy and control.
It also features an electronically-controlled variable geometry turbocharger and an advanced engine control unit (air system-based charge control).
The R–Engine is fitted with a 16-valve dual overhead camshaft which is driven by an internal steel silent timing chain. For reduced vibration and lower booming noise, the R gets a lower balance shaft which has been encased in a stiffened ladder frame housing for increased rigidity. Weight-saving features include serpentine belt with isolation pulley, a plastic head cover, plastic intake manifold and plastic oil filter housing.
Developed by a 150-man team at an investment cost of 250 billion won, the R–Engine harnesses Hyundai´s newest and most advanced development tools. Computational flow dynamics and structural and thermal analysis were used to optimize its design while computerized simulation of the die casting process was employed to achieve the optimal balance of strength and low weight.
Over 500 prototype engines were built during the 42 month–long development period which encompassed a wide variety of performance and emissions tests, endurance as well as NVH, cooling and lubrication studies. Finally, the engine was installed in vehicles and subjected to exhaustive testing under all imaginable environmental conditions.
To achieve Euro-5 emission compliance, the R is fitted with a close-coupled diesel particulate filter plus highly efficient exhaust gas recirculation with by-pass valve.
Tau(τ) Engine (2008)
Hyundai’s 4.6-liter Tau V-8 engine, which debuted in the premium Genesis sedan in 2008, was named one of “Ward’s 10 Best Engines” for two consecutive years, in 2009 and again for 2010 by Ward’s Auto World. Year 2009 was the first time that a Hyundai engine appeared on the prestigious “Ward’s 10 Best Engines” list, while this year marks the first time only one V8 made the grade.
“Tau” is the latest in the series of engines to be independently developed by Hyundai Motor and takes its name from the Greek letter Tau (τ). Hyundai Motor wanted luxury car performance to be within the reach of the many, not just the few. From this point of view, the Genesis was created to establish a new paradigm for value in the premium car market. After four years of intensive effort, the dream has become a reality with the Tau engine. Tau has a maximum output of 375 horsepower and 333 pound-feet of torque using premium fuel. The 375 horsepower corresponds to 81 horsepower per liter, which is the highest among competitors in its class.
U2 Diesel Engine (2008)
The U2 is Hyundai's cleanest, quietest and most fuel efficient diesel engine for compact passenger vehicles. Displacing 1,582cc, the U2 utilizes a second generation common rail diesel injection system to deliver class-leading performance. Total power output measures an impressive 95kW@4000rpm. Torque is rated 260Nm@1900~2750rpm--best in its class, and more than 90 percent of the maximum torque is achieved at 1500rpm.  A variable geometry turbocharger, variable swirl control system and an electronically controlled exhaust gas recirculation (EGR) cooling system help endows the U2 with outstanding fuel economy (4.7l/100km) and low emissions (125g CO2 /km).  Moreover, the U2 is fully compliant with the latest Euro4 emission standards. The optional particulate filter reduces particulate matter to Euro 5 standards which take effect next year.  The U2 is also the quietest engine in its class, measuring up to two dBA lower than leading competitors.
S-Engine (2006)
The S-Engine, the world’s highest quality V6 diesel engine, was developed solely by Hyundai Motor. It achieves a powerful performance, generating 240 horsepower, while boasting the most economical fuel efficiency available today. It not only offers fast response time, but also overcomes limitations of existing diesel engines. Its power output is equivalent to gasoline engines and it also meets the Euro 4 Environmental Regulation standards, proving to be an advanced diesel engine with top quality performance, fuel efficiency, and environmental friendliness. The S-Engine is currently available in the Veracruz, Hyundai’s luxury SUV.
Hyundai Blue Drive
To address the global warming problem, Hyundai Motor in November 2008 announced “Hyundai Blue Drive,” an eco-initiative which will bring to market a range of eco-friendly products and technologies designed to reduce CO2 emissions, improve fuel efficiency and achieve a fleet average of 35 miles per gallon by 2015, ahead of government requirements in the U.S., Hyundai’s biggest overseas market.
In 2009, Hyundai introduced high mileage “Blue” editions of its Accent and Elantra models. These models will deliver outstanding fuel economy without adding thousands of dollars to the price. In fact, “Blue” models will be priced lower than other models, assuring they will be both efficient and economical. 
Hyundai is focused on achieving an excellent MPG-per-dollar ratio with these models. Fuel-efficient modifications include low-rolling-resistance tires, enhanced aerodynamics, revised engine calibrations, fuel-efficient steering systems and reduced final drive ratios to deliver even higher mileage and lower emissions than today’s models. These new high mileage editions will be identified with unique “Blue” badging.
Hybrid Electric Vehicles
Hyundai Motor introduced its first hybrid electric vehicle in the Korean market in July 2009: A compact-sized LPG model, the Elantra LPI (Liquefied Petroleum Injection) hybrid, a car that uses both Liquefied Petroleum Gas and electricity. This is the world’s first hybrid vehicle fueled by liquefied petroleum, and is also the world’s first car to use lithium-ion polymer rechargeable batteries.  In 2010, Hyundai Motor plans to introduce mid-sized gasoline hybrid based on the forthcoming all-new Sonata platform.
Hyundai has been working on hybrid electric vehicle technology since 1994 and has provided Getz and Accent hybrid vehicles to Korean government agencies in pilot testing programs.
The mass production of hybrid cars starting in 2009 is a major turning point for Hyundai, which will increase its competitiveness in the environmentally-friendly car sector, an area automakers worldwide are counting on for their strategic survival in the next-generation business sector.
Fuel Cell Electric Vehicle
Hyundai’s Fuel Cell Electric Vehicle program is gaining momentum with plans to expand the demonstration fleet into the hundreds and start limited series production by 2012.
Sports Marketing
Football is a key marketing tool Hyundai employs to build awareness around the world. The company’s association with the World Cup has proven very helpful in raising brand awareness and attracting new visitors to Hyundai showrooms worldwide.
Hyundai is one of the strongest supporters of football in the world having served as the official sponsor of the 2002 FIFA World Cup Korea / Japan™ and the 2006 FIFA World Cup Germany™ as well as many other FIFA tournaments. The company has extended its strategic sponsorship agreement with FIFA to cover the 2010 and 2014 World Cups.
Hyundai Motor in Numbers
1. Sales

(unit: thousand) 2009 2008 2007 2006
Domestic 703 571 625 581
Exports 911 1,099 1,076 1,030
1,493 1,113 900 885
Total 3,106 2,783 2,601 2,497
YoY change % 11.6% 7.0% 4.2% 6.8%
* Hyundai currently has 5 overseas plants (U.S, China, India, Turkey and Czech)
2. Top Selling Models
Foreign countries Korea domestic
Model Units Model Units
1 Elantra(Avante) 605,499 Sonata 146,326
2 Accent(Verna) 330,324 Avante(Elantra) 110,228
3 i10 282,953 Porter(H-100) 78,846
4 Tucson 208,827 Grandeur(Azera) 75,844
5 Sonata 197,238 Santa Fe 58,324
6 i30 187,115 Starex(H-1) 47,259
3. 2008 Global Sales Ranking
1           Toyota                                       8,972,000
2           General Motors                                       7,790,245
3           Volkswagen                               6,271,724
4           Ford                                  

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