Hyundai Motor Group announces new business priorities
- Executive Vice Chairman Euisun Chung sets business competitiveness; future-readiness; and innovative management & organization as key pillars of group-wide strategy for New Year
- Group expects improved profitability from regional HQs after being granted greater autonomy
- Ambitious new targets set: 44 electrified models and 1.67 million annual sales by 2025; pilot operation of autonomous ‘Robo Taxis’ in Korea by 2021
- Group plans to strengthen diversity, expertise and independence of boards, and maximize shareholder & customer value through proactive communication.
– Hyundai Motor Group today officially ushered in 2019, as Executive Vice Chairman (EVC) Euisun Chung laid out the top priorities for the year ahead.
Hyundai Motor Group today officially ushered in 2019, as Executive Vice Chairman (EVC) Euisun Chung laid out the top priorities for the year ahead, through a New Year’s address to employees at the Group’s headquarters.
EVC Chung identified ‘enhancing business competitiveness’; ‘strengthening future-readiness’; and ‘innovation of management and organization systems’ the three pillars to propel the organization forward and make great strides in 2019.
Enhancing business competitiveness
EVC stressed the role of the regional headquarters in improving the Group’s profitability in automotive businesses and explained plans to grant them greater autonomy. Strengthening business fundamentals and optimizing operations as measures to spur sustainable growth across the board, will also be on the automotive group’s agenda, he said.
EVC Chung had high expectations for the 13 new models at Hyundai, Kia and Genesis brand vehicles set for launch this year. He showed confidence that these models will not only serve to revitalize the Group’s business in key markets, notably the U.S. and China, but also strengthen operations in emerging markets such as India and ASEAN countries.
According to EVC, the Group will refocus its business portfolio, maximizing efficiency through a ‘selection and concentration’ approach, to strengthen the viability of operations in the global market.
His expectations for non-automotive affiliates were also specific. The EVC said he is counting on the Group’s components businesses to spearhead its technological advancements, while steel affiliates should continue to lead the development of advanced materials. As for the construction business, it was made clear that strengthening the core fundamentals of the industry, such as design and engineering is imperative.
According to EVC Chung, Hyundai Motor Group has no plans on slowing down its investment in new growth areas and expects to accelerate technological advancements to make itself an Industry 4.0 leader.
The Group aims to speed up the transition towards 『Clean Mobility』 and position itself as a global leader in driving this change in the industry. The Group will continue developing a wide array of electrified powertrains ― hybrid, electric, and hydrogen fuel cell-powered vehicles ― and by 2025 will offer 44 electrified models, targeting annual sales of around 1.67 million units. By 2030, it expects to have invested around KRW 8 trillion (about US$7 billion) in fuel cell technologies including FCEVs ― an area in which it has already established technological leadership.
With the goal of launching a pilot fleet of autonomous ‘Robo taxis’ in Korea by 2021, Hyundai Motor Group will pursue and explore partnerships with global industry leaders to develop autonomous driving technologies that are both safe and innovative.
In addition, the Group will combine capabilities to create its own mobility service business model. Its plans involve developing business opportunities that integrate manufacturing and services, as well as expanding the Hyundai Motor Group’s global reach through partnerships with third-party experts.
Innovation of Management/Organization Systems
The EVC emphasized that an advanced management system and flexible corporate culture are crucial to accomplishing business objectives for the New Year.
To establish more transparent and swift decision-making processes, the Group plans to strengthen the diversity, expertise and independence of the Board of Directors at each affiliated company, and maximize shareholder value and customer value through proactive communication with shareholders and the market.
In line with its efforts to streamline its business, EVC Chung also vowed to fulfill social responsibilities, create jobs and achieve win-win opportunities and harmonious cooperation across the business. Driving change and innovations in the way employees think is the imperative in achieving such changes, the EVC said.
Source and pictures : Hyundai Motor Group