[News Article] Hyundai Motor chair marks 3rd year of record earnings
Hyundai Motor chair
marks 3rd year of record earnings By Byun Hye-jin, The
Korea Herald - Hyundai Motor Group is expected to post record earnings this
year, breaking its own record for the third year in a row since Executive Chair
Chung Euisun took the helm of the world's third largest carmaker in 2020. Hyundai and its
smaller affiliate Kia are projected to post 260.8 trillion won ($192.5 billion)
and 26.6 trillion won in sales and operating profits this year, according to
estimates by market tracker FnGuide. Both figures stand at an all-time high. Since Chung took up
leadership, the auto giant’s yearly revenue surged 37 percent to 229.9 trillion
won as of last year, while operating profits doubled to 17.5 trillion won
during the same period. Last year, the carmaker also won the No. 3 title in the
global automotive market, selling 6.85 million vehicles. In the
January-September period this year, it sold over 5.48 million vehicles, an 8
percent jump from a year ago. Its premium Genesis brand, in particular, hit the
1 million mark in global sales, a feat for the carmaker that had long been
considered a quality, budget car brand. Industry watchers
agree that Hyundai’s stellar performance is the outcome of Chung’s aggressive
business strategy to diversify its product lineup, ranging from cost-effective
cars to value-added futuristic models. Chung is especially credited with
leading the launch of the Genesis brand in 2015, recruiting top designers from
Bentley. Under the ambitious
goal to sell over 2 million electric cars worldwide by 2030, Chung has more
recently made a big push for clean mobility. Although Hyundai and Kia cars
became ineligible to receive EV subsidies following Washington’s Inflation
Reduction Act, the carmaker expanded the electric car lease business to secure
footing in the all-important US market. It also vowed to speed up the
construction of an EV manufacturing plant in Georgia within the next year. In the third
quarter, Hyundai and Kia’s eco-friendly cars, including hybrid and
battery-powered car sales in the US, skyrocketed 93 percent and 95.4 percent to
a record-high of 46,794 units and 33,305 units, respectively. Bold investments in
future technology show Chung’s commitment to making Hyundai Motor Group a prime
mover in mobility innovation. Under a 1-trillion-won deal, the auto giant
acquired American robotics company Boston Dynamics in June 2021. Last year, it
invested a total of 1.45 trillion won and added a new subsidiary called 42dot,
an autonomous vehicle startup in Korea, in a move to boost its software-defined
vehicle business. But Hyundai
chairman’s push to defend the world’s top 3 title is not without challenges.
The company said it needs a breakthrough in the Chinese business that has been
dwindling ever since 2017, a year after when China started to take retaliatory
measures against Korea for its decision to deploy a US-made missile defense
system. Of the five
production bases in China, Hyundai has either sold or plans to sell off three
manufacturing plants in Beijing, Chongqing and Changzhou. After improving the
production efficiency of the remaining two plants, it looks to focus on
manufacturing profitable Genesis cars and SUVs. “We also plan to
roll out cost-competitive and high-quality electric cars in China, one of the
largest EV markets and restore our reputation there,” said the company
official. Improving corporate
culture is another pressing issue for the company as it seeks to welcome new
ideas and boost work performance. The chairman stressed in his New Year's
message that he will make efforts to overhaul the status quo and build a
progressive and flexible working environment. “Compared to his
father Chung Mong-koo (the honorary chairman), Chung has shown a more open
(style of) leadership by joining hands with automotive software and chip
companies to adapt to the fast-evolving mobility market,” said Kim Pil-su, a
car engineering professor at Daelim University. “He has expanded Hyundai’s
global presence with internal combustion engine cars and the Genesis brand, and
is creating a strong foothold as the first mover in the EV market.” Source: https://news.koreaherald.com/view.php?ud=20231010000669
2023.10.13
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