Hyundai 2005 Annual Report Download - page 8

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Hyundai Motor Company
Annual Report 2005
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Letter from the Vice Chairman
Through our ongoing development in global markets and our continued progress in the
development of environmentally friendly automobiles and automobile technologies, a rise in the
brand value of our automobiles is assured. With that in mind Hyundai Motor Company will
overcome the current difficult economic climate prudently, using the current crises as an
opportunity to reinforce the state of the company.
Hyundai Motor Company plans to thoroughly reduce overall expenditures, and in order to act as
the driving force for its growth, plans to increase R&D spending and overall investments in
overseas markets.
In keeping with the compatibility of Crisis Management-based retrenchment and continued growth
development based on investment expansion, Hyundai Motor Company is aggressively pursuing a
dual motive comprised of a high return on investment and initiatives to further the future corporate
value of the company.
Respectable stakeholders.
Hyundai Motor Company promises to reward the loyalty of our stakeholders by providing a high
return on investment. In addition, Hyundai Motor Company will endeavor to become a model
company for which all investors will find ample reason to place their trust in with respect to their
investments.
Crisis is also a time for opportunity. Difficult economic circumstances call for a change to the
existing order of markets. In addition, it is a fresh opportunity for newcomers. As Hyundai Motor
Company is in the midst of its plans to establish its Global Management initiatives, we will endeavor
to redefine our standards through the establishment of a new order in the global automobile
industry.
We look forward to your continued interest, support and encouragement of Hyundai Motor
Company. We invite you to follow our every step in good health and happiness as we continue to
strive together for a brighter future and environment.
Thank you.
Dong-Jin Kim, Ph.D.
Vice Chairman & CEO
Despite the difficult financial circumstances surrounding the domestic economy in
2005, Hyundai Motor Company posted domestic production and exports of
570,000 and 1.131 million automobiles respectively; our foreign production
centers produced and sold 636,000 automobiles totaling 2.337 million
automobiles worldwide and achieving 34.9 trillion Korea won in global sales.
Respectable stakeholders.
There seems to be no end to the difficult economic global market this year in
terms of an improvement in the valuation of the foreign exchange rate and price
stability of international oil markets and raw materials. Despite difficult domestic
and global financial market conditions, Hyundai Motor Company has selected this
year to be the year in which it firmly entrenches its Global Management initiatives.
Implementing Internal Management, Global Management, Emergency
Management, Transparency and Ethics Management as its business policies,
Hyundai Motor Company forecasts investment to total 3.436 trillion Korean won in
2006, an increase of 27.6 percent from the previous year and sales revenue to
reach 41.4 trillion Korean won, a rise of 18.8 percent from the previous period. By
reaching such lofty targets, Hyundai Motor Company will strive to meet profitable
targets in the rapidly changing global market.
Sales targets for the current year have been set as 2.689 million automobiles, an
increase of 15.1 percent from the previous year and encompassing a domestic
production of 1.767 million automobiles and 922,000 automobiles from overseas
production facilities respectively.
Through the expansion of the Hyundai line-up and dealer networks in overseas
sales markets, Hyundai Motor Company expects a continued strengthening of
brand value and has set regional sales targets of 532,000 automobiles for the
U.S.A, 354,000 for Western Europe, 300,000 for China and 280,000 for India.
Hyundai Motor Company plans the launch of 2-3 new models per region this year
in these markets and will continue to strive forward in all international markets.
As the domestic market has fallen into a state of stagnation over the last several
years, the whole industry has been faced with many difficulties. Expected to be a
front-runner in the road to recovery this year, Hyundai Motor Company plans to
strengthen its business capacity acting as the active agent of growth in order to
help revitalize the overall business climate. Through the increase in product quality
and the strengthening of Customer Satisfaction Management, Hyundai Motor
Company has set a lofty target of 630,000 automobiles to be sold in the domestic
market, an increase of 10.6 percent from the previous fiscal year.
Domestic Total Sales (Units)
600,000
450,000
750,000
300,000
'03 '04 '05
150,000
Domestic Total Export (Units)
1,100,000
1,000,000
1,200,000
900,000
'03 '04 '05
800,000
Europe Total Sales (Units)
350,000
300,000
400,000
250,000
'03 '04 '05
200,000
280,641
339,767 350,406
1,011,494
1,126,620 1,131,122
635,269
551,226 569,721