Honorary Chairman Mong-Koo Chung Honorary Chairman Mong-Koo Chung

2021.11.12 2005-2010 분량0min

Step up global management from ‘molten metal to automobile’

Becoming a trailblazer is like a test in which unexpected difficulties and selections are constantly imminent. No one can take a leap forward without enduring purpose and confidence. If you only follow the footsteps of others, you can’t become a pioneer. HMG challenges and innovates itself to become one of the top five automakers in the world after announcing its determination to hit the global market.

The key to going global: customer satisfaction and modularity

In 2005, HMG announced Brand Management Vison to become a global top brand. The 2005 was the first year for Global Management and gave shape to the plan with the aim of securing the world’s fifth-highest quality in 2005 and becoming one of the global top five automakers in 2010.

Genesis Coupe passing in front of Los Angeles theater

HMG established the first overseas plant with a production capacity of 100,000 units in Turkey (HAOS) in 1997. The Group also started production in the U.S. (HMMA) in 2005 and then rolled up its sleeve for a global management system. In 2006, a Czech plant (HMMC), a second plant in China (BHMC), and a second plant in India (HMI) were consecutively built at emerging markets in Europe and Asia, stepping up globalization.

Two employees inspecting auto parts at Hyundai Motor's Czech plant

Hyundai Motor Czech plant, which started full-scale mass production (2008)

While outstanding technologies were required to jump over the high walls of going global, gaining support and loyalty from users were more important. With ‘Quality First’ in mind, HMG focused on increasing production in overseas plants to reach customers by manufacturing vehicles that met each customer’s needs. Whenever a crisis emerged, the Group always surprised customers by thinking outside the box in marketing such as the Hyundai Assurance Program. 

Defining Moment

The Hyundai Assurance Program

The Hyundai Assurance Program was implemented at a time when the demand for vehicles plunged in the 2008 global financial crisis: Hyundai provided a complimentary vehicle return program when customers experienced an involuntary loss of income and health issues within 12 months of purchase date. It was part of an effort to share the difficulties of customers who were anxious due to the economic downturn. The program was an innovative and localized service.

Screenshot of a car driving through a field during Hyundai Motor Company 2009 Assurance commercial

Hyundai Motor Assurance Ad (2009)

Inside view of the tunnel conveyor system that connects Hyundai Mobis’ Czech plant

Hyundai Mobis Czech module plant

A spirit of challenge in HMG led to a ‘Modularity’ project. What’s important was to lower the failure rate to satisfy customers as the order volumes go up, and inventory management was also important to ease the burden of production costs. As the first modular facilities were constructed in HMMA in 2004, all plants eventually adopted the modular process which supplied components intensively. This translated into upgrading the quality .

Defining Moment

Modularity

Modularity is about combining tens of thousands of individual auto components into one large assembly unit. It is a system in which Hyundai MOBIS builds a module by bundling several components, and Hyundai and Kia assemble them and produce automobiles. Modularity contributed to simplify the process from 20,000~ 30,000 components to six to seven modules such as a chassis, a driver's seat, a door, and a seat, enhancing the quality accordingly. Modularity played a pivotal role for HMG to become world's 5th largest automaker (as of sales volume).

Hyundai Mobis 3 core modules (cockpit, chassis, front end)

Hyundai Mobis’ automation module

Hyundai Motor Company's growth story published in the US magazine <Time> in May 2005

Time(2000)

At a time when accelerating global management from 2005 to 2010, all eyes were on HMG. In April 2005, the cover story of Time Magazine featured the Group’s strategy of making inroads into the global market along with quality management. Forbes also said, "Hyundai Motor's ambitious move puts pressure on the global automobile industry, including the Detroit Big three carmakers". Motor Trend, an American automobile magazine, adopted Hyundai Motor as the one that the world should keep an eye on at the place of choosing the ‘Car of the Year’ in 2006.

From materials to automobiles with the operation of an integrated steel mill

Since the global market was changing rapidly, creative thinking and fearless spirit of challenge became a must to survive. HMG, which was committed to becoming a future winner and trailblazer, started to run an integrated steel mill in 2010. This was the world’s first ‘one-stop system’ capable of producing from molten iron to automobile. The true vertical integration ranging from materials, components to automobiles was finalized by rolling out high-quality automotive steel sheets at the Dangjin integrated steel mill in Hyundai Steel and laid the foundation for enhancing the competitiveness in the global market.

Hyundai Steel Integrated Steelworks

Hyundai Steel Integrated Steelworks

Hyundai Steel Integrated Steelworks 2nd Logo Fireworks Ceremony

Furthermore, running the integrated steel mill added significance to HMG by completing the world's first resource recycling business structure. Each business field such as steel-components-automobile-construction established an organic resource circulation system: manufacture molten iron and steel plate (Hyundai Steel) → produce/scrap automobiles (Hyundai Kia) → produce steel products for construction using recycled iron scraps (Hyundai Steel) → civil engineering & construction (Hyundai E&C). The system served the purpose of renewing the Group’s image as an eco-friendly management leader all around the world.

Defining Moment

Dome-type, linear-type sealed raw material storage facility located at Hyundai Steel's Dangjin Works

Hyundai Steel Integrated Steelworks Eco-Friendly Sealed Raw Material Processing Facility

Integrated Steel Mill

The integrated steel mill in Hyundai Steel is totally equipped with three processes: ironmaking, steelmaking, and rolling. Electric furnaces that use an iron scrap as raw materials produce iron products for industry and construction, and blast furnaces that use an iron ore as raw materials make the best steel sheets for automobiles along with shipbuilding and home appliances. The futuristic Dangjin still mill is equipped with eco-friendly and advanced IT facilities such as the world’s first sealed raw material storages and off-gas power plants. It has developed and produced high-performance and eco-friendly automotive materials such as high-tensile strength steel and hot stamping.

Land in one of the global top five automakers

Hyundai Motor America Outdoor Advertising

In 2010, HMG ranked 5th in the world by overtaking Ford for the first time in ten years after setting the goal of ‘Global Top 5’. When no one could guarantee success, a small clue of possibility turned into a torch for success by adding the spark of hope called efforts. Production, procurement, and the market became globalized amid the meticulous design of localization with the aim of attaining its success in the global market. The corporate culture that readily chose changes when finding the slightest chance proposed a new value in the new era.

Major History

Exterior view of Hyundai-Kia hydrogen fuel cell vehicle R&D center
A view of Hyundai Motor's factory in Alabama, USA
Hyundai Mobis logo
Hyundai Motor Group’s quality management story and overseas market expansion strategy featured on the cover story of Time magazine in the US
INNOCEAN Worldwide logo close-up
Hyundai car advertisement placard installed on the wall of the building
Hyundai Motor Group logo
2006 Germany World Cup official sponsorship signing ceremony
Hyundai Motor Company Logo
Hyundai Motor Group Chairman Chung Mong-koo giving a New Year's address
Hyundai Motor Company Logo
Kia Motors plant in Slovakia
Hyundai Commercial logo
Scene of selling Genesis to customers in the North American market
A view of Hyundai Motor's plant in the Nosovice region near Ostrava, Czech Republic
Hyundai Motor India factory inspection process
Rear side of hydrogen fuel cell vehicle parked in front of Hyundai-Kia hydrogen electric vehicle monitoring business headquarters
Hyundai Motor Group's social contribution activities 'Moving Together' logo
Front side of the Tucson hydrogen electric vehicle on a road tour in the US
Hyundai Motor Vice Chairman Hyun-soon Lee and US President John Krafchik hold a plaque next to the Genesis premium sedan, which was selected as North American Car of the Year.
The front side of the Kia Soul, the first Korean car to win the Red Dot Design Award in 2009
Hyundai Motor Group logo
Hyundai's Tau engine selected as one of Korea's top 10 new technologies
Players playing soccer at the 2010 World Cup in South Africa
Chairman Chung Mong-koo and Russian Prime Minister Vladimir Putin press the button for completion
February 2010 Kia Georgia plant completion ceremony
Hyundai Motor Company Logo
Chung Mong-koo, chairman of Hyundai Steel, giving a speech at the completion ceremony of the integrated steel mill
Hyundai Rotem KTX-Sancheon

Exterior view of Hyundai-Kia hydrogen fuel cell vehicle R&D center

2005 Hyundai·Kia establishes the technology R&D center

A view of Hyundai Motor's factory in Alabama, USA

2005 Construction completion of HMMA

Hyundai Mobis logo

2005 Construction completion of MAL-GA

Hyundai Motor Group’s quality management story and overseas market expansion strategy featured on the cover story of Time magazine in the US

2005 TIME magazine publishes a feature coverage on Hyundai Motor Company’s great leap forward as a global automaker

INNOCEAN Worldwide logo close-up

2005 Hyundai INNOCEAN WORLDWIDE established

Hyundai car advertisement placard installed on the wall of the building

2005 Hyundai Motor selected as one of the global top 100 brands

Hyundai Motor Group logo

2006 Groundbreaking ceremony of an integrated steel mill in Hyundai Steel

2006 Germany World Cup official sponsorship signing ceremony

2006 The official sponsor of 2006 FIFA World Cup Germany

Hyundai Motor Company Logo

2006 Hyundai Motor ranks highest in non-premium by J.D. Power IQS

Hyundai Motor Group Chairman Chung Mong-koo giving a New Year's address

2007 HMG announces customer-oriented management and the stabilization of global management

Hyundai Motor Company Logo

2007 Hyundai Motor exceeds 5 million units in cumulative sales in the U.S.

Kia Motors plant in Slovakia

2007 Construction completion of the Zilina plant Kia, Slovakia (Kia Slovakia)

Hyundai Commercial logo

2007 Hyundai Commercial established

Scene of selling Genesis to customers in the North American market

2008 First unveiling of Hyundai Genesis in the North American market

A view of Hyundai Motor's plant in the Nosovice region near Ostrava, Czech Republic

2008 Construction completion of HMMC

Hyundai Motor India factory inspection process

2008 Construction completion of HMI’s 2nd plant

Rear side of hydrogen fuel cell vehicle parked in front of Hyundai-Kia hydrogen electric vehicle monitoring business headquarters

2008 Hyundai-Kia Motors establishes the Monitoring Division for FCEV

Hyundai Motor Group's social contribution activities 'Moving Together' logo

2008 HMG declares Socially Responsible Management (SRM)

Front side of the Tucson hydrogen electric vehicle on a road tour in the US

2009 Hyundai•Kia hydrogen vehicles-Mohave and Tucson-successfully travel in Hydrogen Road Tour

Hyundai Motor Vice Chairman Hyun-soon Lee and US President John Krafchik hold a plaque next to the Genesis premium sedan, which was selected as North American Car of the Year.

Hyundai Genesis named the 2009 North American Car of the Year

The front side of the Kia Soul, the first Korean car to win the Red Dot Design Award in 2009

2009 Kia Soul wins a Red Dot Design Award

Hyundai Motor Group logo

2009 HMG announces an eco-friendly future investment plan

Hyundai's Tau engine selected as one of Korea's top 10 new technologies

2010 Hyundai-Kia Motors Tau engine selected among 10 Best Engines in the world for 3 straight years

Players playing soccer at the 2010 World Cup in South Africa

2010 The official sponsor of the 2010 FIFA World Cup

Chairman Chung Mong-koo and Russian Prime Minister Vladimir Putin press the button for completion

2010 Construction completion of HMMR

February 2010 Kia Georgia plant completion ceremony

2010 Construction completion of KMMG. The advertisement at Super Bowl in USA

Hyundai Motor Company Logo

2010 Hyundai Motor ranks No. 65 in the Best 100 Fastest Growing Brand

Chung Mong-koo, chairman of Hyundai Steel, giving a speech at the completion ceremony of the integrated steel mill

2010 Construction completion of an integrated steel mill in Hyundai Steel

Hyundai Rotem KTX-Sancheon

2010 Hyundai Rotem successfully commercializes the KTX-Sancheon