Hyundai 2005 Annual Report Download - page 21

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Hyundai Motor Company
Annual Report 2005
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Global Management
Hyundai Motor Manufacturing Alabama (HMMA)
The grand opening of the HMMA plant in May 2005 was possibly the most
significant moment in the history of Hyundai Motor Company.
Employing more than 2,000 skilled workers and utilizing 75 suppliers, the plant has
begun its roll out of the all-new 2006 Sonata and, when it reaches full capacity, will
produce 300,000 vehicles a year.
The 2 million square foot plant resides on 1,744 acres (7 million square meters) of
land and includes a stamping facility, paint shop, vehicle assembly shop, a two-
mile test track and an engine shop. It is Hyundai Motor Company’s most
advanced plant to date incorporating the world’s best production, quality control
and testing facilities.
HMMA is the cornerstone of Hyundai Motor Company’s US$1.1 billion investment
in the American continent. We have R&D Centers in Irvine, California and Michigan
and this network is coordinated from four regional headquarters in Washington.
Miami, Detroit and Chicago.
The economic impact of the opening of the HMMA plant is yet to be fully realized. It
is expected to generate up to 5,500 jobs in service, supplier and related industries,
in addition to the more than 2,000 employees working at the plant, ensuring huge
positive gains for the local economy.
Production Spanning the Globe: Made In The U.S.A
Beijing Hyundai Motor Company (BHMC)
Beginning operations in December 2002 with the production of the EF Sonata
BMHC has begun to earn recognition throughout the globe.
The pride of BHMC is the Beijing Plant which resides over 163 acres (661,000
square meters), with a production capacity of 300,000 vehicles per year. The Beijing
Plant produces Hyundai’s Sonata, Elantra and Tuscon models. BHMC has shown
such remarkable progress in so short a time that its success has been coined
‘Hyundai Speed’ in the Chinese vernacular. BHMC sold over 50,000 of the new EF
Sonata in its first year of production, garnering a 9.2 percent share of the entry mid-
size class in China.
In a mere six months the Elantra, modified to meet the demands of local consumers,
became an instant success as well, ranking first in total sales for its class. As the top
foreign automobile manufacturer in the Chinese market Hyundai Motor Company is
moving forward to sustain this lofty status.
The success of Hyundai Motor Company’s joint venture in BHMC has resulted not
only in economic development but in improved inter Korean-Chinese relations.
Mr. Jia Qinglin, chairman of the National Committee of the Chinese People’s Political
Consultative Conference (CPPCC) used the term ‘Hyundai Miracle’ to describe the
importance of Hyundai Motor Company to the Korean economy and foreshadowed
that the continued success would translate into continuing progress and
development in the Chinese automotive industry. His predictions could not have been
more accurate as, on April 18th 2006, Hyundai Motor Company broke ground on its
second manufacturing plant in Beijing, which will double Chinese manufacturing
capacity to 600,000 units.
China: Partners In Production
430,000
Vehicle Sales
Vehicle Sales and
Market Share in USA
Market Share
* (Complete Body Unit / Percent)
420,000
440,000
410,000
2003 2004 2005
2003 2004 2005
400,000
400,221
418,615
455,012
2.4% 2.5%
2.7%
2.0
1.5
2.5
1.0
0.5
Vehicle Sales
HMMA Total Sales
* (Complete Body Unit)
91,043
200,000
150,000
250,000
100,000
50,000
Vehicle Sales
BHMC Total Sales and
Market Share in China
Market Share
* (Complete Body Unit / Percent)
2003 2004 2005
2.4%
5.8%
7.5%
8
6
10
4
2
200,000
150,000
250,000
100,000
50,000
52,128
144,090
233,668