Hyundai, Kia to revamp R&D organization

Hyundai Motor Co. ’s and Kia Corp. are undergoing a comprehensive restructuring of their research and development (R&D) organizations.

This decision comes in response to the rapidly changing global mobility market, aiming to consolidate scattered R&D capabilities.

Hyundai Motor and Kia announced on Thursday that they plan to establish an innovative R&D specialized organization, leading efforts in next-generation software and hardware architecture integration, cost innovation, and moving away from the traditional vehicle development paradigm.

"We are preparing for a restructuring of the R&D organization to secure future competitiveness, focusing on early preparation for innovations such as software-defined vehicles (SDVs) through synergy between software and hardware technologies,” the Hyundai Motor and Kia sources said. “We plan to announce detailed restructuring plans in January next year.”

In the face of intensified price competition among electric vehicle manufacturers and the accelerating shift to SDVs, Hyundai Motor and Kia have actively pursued multi-faceted innovative technologies and vehicle development.

Various entities within the Hyundai Motor Group, such as the global software center 42dot, the Chief Technology Officer (CTO) of Hyundai and Kia, the Global Strategy Office (GSO) and the SDV Division, collaborated based on their expertise in response to changes in the future mobility market.

However, it has been pointed out that the lack of consistency in innovation strategies due to organizational decentralization and leadership duality, along with the complexity of the collaboration system, has been a factor in slowing down the pace of R&D.

The 42dot and SDV divisions were led by President Song Chang-hyun, CTO and President Kim Yong-Hwa, and GSO and Vice President Kim Heung-Soo. This is the backdrop for the comprehensive restructuring of the R&D organization.

With the latest restructuring, President Kim stepped back from the front line and was appointed as an advisor.

Write to Il-Gue Kim at black0419@hankyung.com