Hyundai 2006 Annual Report Download - page 11

Hyundai Motor Company Annual Report 2006Open Road
07
Greetings to our respectful shareholders,
I would first like to thank you for your continued support and interest. Furthermore, it is my great honor to present
to you this report regarding the achievements made by all our employees and staff last year.
We thank you for honoring us by participating in the 39th HMC Annual Shareholders Meeting, despite your busy
schedule. It is my great pleasure to present this report to you, our shareholders, who always follow our progress
with affection and interest.
Overall the year 2006 was internally and externally burdensome for us due to sluggish domestic sales and the fall of
exchange rates. However, on the back of the faith and support of our shareholders and with the unity of our
workforce both quantitative and qualitative factors showed improvement throughout the year.
In terms of quantity, Hyundai Motor Company recorded domestic sales of 580,000 vehicles, 1,031,000 units in exports
while 886,000 units were sold from overseas manufacturing plants with sales totaling 2,497,000 units, an equivalent
of 37 trillion Korean Won. Comparing with corresponding figures for 2005, the number of sold cars increased by 7
percent yielding a 6 percent increase in total revenues, suggesting that the company had steadily grown regardless
of the harsh environment facing management. No less than the quantitative, HMC was able to harvest qualitative
achievements that were actually more notable.
One of the first achievements that deserves mention is the company’s gathering momentum to globalize its
operations. The Alabama Plant, settling itself for steady production, vaulted into the top ten ranks for initial quality
among the 60-plus automotive plants in North America, in only its first year of operation. In China, a market whose
importance increases year by year, the ground-breaking for a second plant has begun, further evidence of HMC’s
China success story. In particular, the simultaneous construction of our new R&D Center will make possible the
localization of new model development in efforts to satisfy local consumer preferences and market demands.
In addition, fueled by company-wide diligence, quality management has finally gained notable achievements. In the
J.D. Power & Associates’ index for initial quality, HMC ranked third, surpassing famous auto makers such as Toyota
and Honda, and took first place among non-luxury brands. According to an overall evaluation survey conducted
among American buyers by Strategic Vision, the Azera (Grandeur) and Tucson both won first place in full-size sedan
and compact SUV categories respectively, a further recognition of HMC’s superiority in these classes.