Hyundai Motor Group held a town hall-style New Year meeting at the Namyang Research Center of Hyundai and Kia on January 3.
This year’s New Year meeting was held in person for the first time in three years since the COVID-19 pandemic, with Chairman Chung Eui-sun, Hyundai Motor CEO Jang Jae-hoon, Kia CEO Song Ho-sung, Head of R&D Park Jung-kook, and Head of TaaS & Vehicle Software Song Chang-hyun engaging with employees to share their 2023 new year messages along with business directions and visions. They actively communicated by specifically answering employees’ queries.
Chairman Chung emphasized, “We must lead the future by overcoming impending crises and turn challenges into opportunities,” and highlighted that he wants to make 2023 a year of “Trust through Challenges and Leap through Change” where they face difficult environments together to strive for a better future.
This sets a new standard for Hyundai Motor Group as they aim to promote “Trust through Challenges” and “Leap through Change.”
The messages signify a commitment to building unwavering trust through continuous challenges and results, as well as striving for sustainable growth through proactive transformations.
The decision to conduct this year’s New Year meeting in a new location and format also reflects Chairman Chung’s commitment to challenges and changes.
The Hyundai and Kia Namyang Research Center has established itself as a central hub for R&D that supports the growth of Hyundai Motor Group through independent model development and engine and powertrain technology, driving technological and quality innovation and future transformations.
The town hall meeting format allows the Group’s executives to directly explain the new year’s management strategies and engage with employees. CEO Jang Jae-hoon discussed Hyundai’s direction, CEO Song Ho-sung addressed Kia’s direction, CEO Park Jung-kook spoke about R&D innovation and organizational culture, while CEO Song Chang-hyun presented the value and vision of SDVs (Software Defined Vehicles).
Chairman Chung’s emphasis in this year’s new year message about the necessity of proactive and dynamic change resonates throughout the context.
Chairman Chung stated, “We must overcome existing inertia and create a continuously changing, proactive corporate culture, and we should not rest on our laurels but aim for new goals.”
After the New Year meeting, Chairman Chung dined with employees in the cafeteria at the Namyang Research Center, discussing various topics including daily life and aspirations for the new year.
He shared, “I feel a renewed sense of nostalgia being here at Namyang Research Center, where our challenges and innovations begin as we emerge from the tunnel of COVID.”
Regarding this year’s business environment, he stated, “The effects of COVID-19 have led to rising interest rates and prices, increasing exchange rate volatility; along with geopolitical risks, the uncertainty in the economy is greater than ever.”
Chairman Chung expressed the importance of overcoming difficult business environments together and emphasized, “Trust through Challenges and Leap through Change.”
Chairman Chung stated that to build “Trust through Challenges,” it is essential to constantly engage in challenges across various domains such as electrification, software, and new businesses, asserting, “To become the first mover that leads the market, we will not spare investments in attracting top talent and technology development.”
He encouraged the employees by sharing that last year, the Ioniq 5 and the EV6, built on the electric vehicle-specific platform E-GMP, won ‘World Car of the Year’ and ‘European Car of the Year’ respectively, and that they have successfully begun transitioning to an electrified system, achieving a top-five global electric vehicle sales ranking.
He went on to say, “This year, we will continue to develop and provide even more advanced vehicles to solidify global electric vehicle leadership and persist in our transition to electrification.”
Hyundai Motor Group plans to expand the customer experience of electric vehicles by launching a variety of electric vehicles from compact to flagship models, including the EV9, Kona EV, and Ray EV.
Chairman Chung underscored the importance of software, stating, “We must transition our overall corporate systems, including R&D, to be software-centric; only then can we secure the capability to create a more perfect SDV and stay ahead in global competition.”
Hyundai Motor Group aims to transform all vehicle models into SDVs by 2025 so that customers can enjoy the freedom of safe and comfortable connectivity through software and innovative user experiences.
By 2025, all vehicle models sold globally will have wireless software updates as a standard feature, and personalized services such as software updates and subscriptions will be provided. A data platform will be established to connect and process various data generated throughout the vehicle lifecycle to offer continuous innovative services.
Chairman Chung expressed, “To secure the group’s future growth engines, we are challenging ourselves in various business areas,” detailing plans in autonomous driving, future mobility, robotics, energy, and new materials.
Chairman Chung remarked, “In the field of autonomous driving, we plan to launch vehicles capable of highway autonomous driving (Level 3) domestically and commercialize level 4 technology-equipped robo-taxis in North America.”
In the first half of this year, Hyundai Motor Group will introduce the G90 and EV9 equipped with ‘HDP (Highway Driving Pilot)’ level 3 highway autonomous driving capabilities domestically. Additionally, through Motional, they will partner with ride-sharing enterprises like Uber in the U.S. to commercialize level 4 Ioniq 5 robo-taxi services.
Chairman Chung also mentioned plans regarding future mobility, stating, “We will actively introduce PBV (Purpose Built Vehicle) that meets the mobility needs of people and goods, and develop a prototype of AAM (Advanced Air Mobility) for air mobility solutions to establish leadership as a mobility service provider.”
Hyundai Motor Group aims to expand its PBV lineup following the launch of the PBV Niro Plus last year and plans to introduce dedicated PBV models based on skating board platforms by 2025. They are also accelerating development of AAM vehicles by signing MOUs with major aviation companies like Rolls-Royce and Safran.
Chairman Chung also elaborated on the robotics sector, stating, “Through close collaboration between the robotics lab, Boston Dynamics, and the BD-AI Institute, we will continuously complete the value chain of supplying human-friendly products that support the welfare and convenience of humanity.”
Hyundai Motor Group established the BD-AI Institute (Boston Dynamics AI Institute) last year, focusing on securing advanced AI capabilities that can create synergies with various future new businesses, including robotics.
He added that they are also pushing for growth in the energy new business areas like small modular reactors, and are accelerating the development of more secure high-strength steel products and smart logistics solutions to continuously secure growth engines.
Hyundai Motor Group is actively entering energy new businesses like small modular reactors, hydrogen production, and power brokerage trading while also accelerating development of steel products and new materials for future mobility.
Chairman Chung stated, “We must challenge ourselves based on ‘trust’, and create greater ‘trust’ as a result of these challenges,” emphasizing trust from customers, social trust, and trust towards colleagues.
He clarified that gaining customer trust is the priority, insisting that “no good product or technology means anything without customer trust.”
He identified ‘quality’ and ‘safety’ as the core elements of customer trust, asserting, “When we maintain our fundamental promises to quality and safety, customers will trust us and readily join us in embracing new changes and challenges.”
Regarding quality, he noted, “This is not just the responsibility of specific sectors, but everyone’s task.” He urged that everyone should prioritize quality and customer satisfaction—delivering an experience that exceeds mere satisfaction—throughout the entire process from product planning and design to production, sales, and after-sales service.
He articulated a strong commitment to safety, stating, “Our commitment to safety is not merely due to external regulations; we must never forget the principle of placing the non-negotiable value of life first and doing our utmost for the safety of our customers and employees.”
Hyundai Motor Group is focusing on quality and safety management. Last year, Hyundai, Kia, and Genesis ranked among the top in JD Power’s durability quality surveys in the U.S., while specialized electric vehicles received top marks from both the Insurance Institute for Highway Safety and Euro NCAP, demonstrating their global recognition for quality and safety.
Each company has appointed a Chief Safety Officer and is expanding their safety organization to enhance safety management at the workplace. They have also established a public benefit foundation, ‘Industrial Safety Coexistence Foundation’, to support the establishment of safe work environments for small and medium enterprises domestically.
Chairman Chung highlighted the necessity of social trust, asserting, “In line with the group’s social responsibility message, ‘The Right Move for the Right Future’, we must be an exemplary company that considers the environment and cooperates for mutually beneficial growth with humanity.”
Hyundai Motor Group is committed to achieving carbon neutrality and carrying out various socially responsible management activities that aim for a sustainable future for future generations, the environment, and communities.
By 2040, they plan to sell only electrified vehicles with zero carbon emissions in major markets, and engage in marine ecosystem restoration projects, including mudflat restoration and ocean plastic collection and recycling. They intend to replace the energy demand of all global sites with 100% renewable energy in the future.
Additionally, they are supporting the electrification transition of small parts suppliers and operating large-scale support programs for co-prosperity, along with sincere activities for future generations and vulnerable global communities such as the ‘for Tomorrow’ campaign and the ‘Greenlight Project’.
Most importantly, Chairman Chung emphasized ‘Leap through Change’ in his New Year message, sharing genuine views on changes in corporate culture and working methods.
He believes that creative thinking and self-directed change among employees are indispensable for Hyundai Motor Group’s sustainable growth.
Chairman Chung stressed, “We must create a proactive corporate culture that continuously changes, overcoming existing inertia.”
He warned, “Just as stagnant water will spoil, a culture that halts change is prone to contamination and breaking apart. We must not settle for reality but strive for new goals. To leap forward toward the future, we will create a culture where new trials can be made without fear of results.”
He continued, “We should decisively halt meaningless tasks that flow habitually and utilize workforce and time efficiently through selection and concentration, encouraging employees to reflect on their work and eliminate unnecessary rituals that waste precious time and energy, and to adopt smart and flexible working methods.”
Chairman Chung stated, “A company should be one where proactive challengers, those who take initiative and put forth voluntary efforts, colleagues who care for each other and cooperate, as well as those who work hard and want to excel, receive recognition and rewards, allowing them to fully pursue their dreams.”
Moreover, he expressed, “We must be open to the voices of our future customers, especially the younger generation,” emphasizing the need to establish a structure where the opinions of the young members inside can be actively reflected in decision-making processes to understand and communicate the thoughts and values of the younger generation.
Chairman Chung committed to lead by example, stating, “We will create a work culture where people work freely, where abilities are respected, and a work environment where principles and common sense prevail.”
At the same time, he vowed to continue implementing organizational changes that respect diversity, and to remove past weaknesses with consistent personnel changes and institutional improvements for a proactive and ever-changing organizational culture.
In conclusion, Chairman Chung asserted, “Even in the face of uncertain external environments and rapidly changing industry paradigms, if we continue to create trust through relentless challenges, with willfulness, positivity, and meticulousness, we can leap to a higher dimension and continue sustainable growth.” He expressed hope that everyone would join this journey towards a better future.
Lee Sang-jin daedusj@autodiary.kr