Hyundai 2000 Annual Report Download - page 19

Through perseverance,
sacrifice and numerous
inherent virtues,
Hyundai Motor has
achieved a brilliant record of corporate
growth in the past three decades that
is unparalleled among automotive
companies both in terms of business
volume and technological capability.
The inauguration of the joint
Hyundai/Kia R&D Center provides the
company with the needed synergies
to drive our growth into the ranks of
global top five automakers by 2010.
The entire R&D staff are focusing their
efforts on the development of more
advanced auto technologies, the
shortening of project lead times, the
improvement of product quality and
business profits. To ensure continuous
technological innovation and secure
a steady stream of proprietary and
competitive technologies that will
enable the company to stand on its
own in the face of ever-intensifying
competition in the global market,
Hyundai has established four new
R&D strategies as follows:
1. Design the next generation
vehicles
Hyundai Motor’s brand image has
significantly improved in the past few
years thanks in large part to the
foreign motoring press where the high
quality of our products is being
recognized with enthusiastic reviews.
With an expanded R&D organization
that spans three continents and the
latest development tools at its
disposal, Hyundai Motor is striving to
increase efficiencies in product
development and improve the quality
competitiveness of our products to
rank as a leading global player in the
truest sense.
2. Develop core technologies
The engineering capabilities of
Hyundai Motor are formidable and
have earned the company the respect
and admiration of customers and
competitors around the globe.
Hyundai Motor cars match and,
in many cases, surpass the industry
standard for collision safety and NVH
performance. The company is in the
hunt for new emerging technologies
and one of the most promising new
areas is vehicle telematics which has
outstanding growth and value added
potential. Since last year, the
company has been operating a pilot
program which employs vehicle
sensors and a central traffic
information center to monitor and
detect vehicles for accidents and theft
prevention as well as offer other
safety, security and convenience
features. The company is planning to
expand the pilot program next year
and anticipates that once it is
commercialized, it will significantly
enhance customer safety and
satisfaction.
3. Improve profitability
Efforts to integrate vehicle platforms,
commonize parts and components
and encourage vendors to adopt a
modular approach to parts supply
have been continuing for years.
These efforts are beginning to pay off
at last, in a big way: Last year, the
company saved more than 1 trillion
won by commonizing and sharing 360
different parts and components.
Vehicle platform reductions require
more patience. From 24 platforms in
1999 we have edged down to 22 in
2000 but we are on track to reach our
announced target of just seven
platforms by 2005. Hyundai Motor
expects to be able to save in excess
of 7 trillion won through our five-year
platform integration and parts sharing
strategy.
4. Strengthen R&D capabilities
The coming shift to alternative fueled
vehicles is a major challenge to every
automaker. For several years, we
have been pursuing the development
of advanced fuel-cell vehicles in the
effort to produce more eco-friendly
automobiles which use renewable
energy sources such as hydrogen.
Last year, the company unveiled a
fuel-cell version of the Santa Fe SUV,
the first fruit of our fuel-cell R&D
efforts. Over the medium- and long-
term, the company is planning to
replace its entire lineup of combustion
engines with next-generation low-
emission, high-mileage ones engines.
Alternative fuel technologies will play
an increasingly important role in the
company’s future.
We are expanding our use of
computer simulation technologies
which are playing an increasingly
important role in the safety and
durability testing of components and
vehicles as well as shortening project
development schedules.
Our development processes also take
into account the need to design eco-
friendly products which are recyclable
at the end of their service life.
The strength of Hyundai Motor’s
commitment to R&D is measured by
our R&D budget which accounts for
4.5 percent of annual sales,
unchanged from last year.
17
Hyundai Motor Company • 2000 Annual Report
Hyundai’s fuel cell powered electric vehicle will
enter mass production in 2005.
A new concept takes shape with a 1:4 scale clay
model