Hyundai is not a carmaker but a tech firm: Chairman Chung

Hyundai Motor Group Chairman Chung Euisun has vowed to turn the South Korean automotive giant into a state-of-the-art tech company to lead the pack in the era of electrification and autonomous driving.

During a ceremony-cum-town hall meeting with employees to mark the start of a new year on Tuesday, he said Hyundai aims to become the first mover to lead markets by securing top talent and sparing no effort to develop new technologies in a wide range of innovation.

While vowing to pursue a “software-centered transition,” the chairman said the group plans to launch various electric vehicle models this year, including Hyundai Motor Co.’s Kona EV and Kia Corp.’s EV9 electric SUV Ray EV.

“Currently, 200 to 300 semiconductor chips are needed for a car. But the number will increase to more than 2,000 in self-driving cars. We shouldn’t be complacent as a carmaker. We must be more meticulous than an electronics company in manufacturing,” he said in his New Year’s message delivered at Hyundai’s research center in Hwaseong, south of Seoul.

“We are nearing the end of this long tunnel of COVID-19. It’s great to be here in person to kick off the new year at the Namyang R&D Center, the heart of our innovation and where we take on challenges,” he said at the ceremony held offline for the first time in three years.

LEVEL 3 SELF-DRIVING CARS IN KOREA, LEVEL 4 IN US

He said the group will launch Genesis G90 and Kia EV9 models capable of Level 3 autonomous driving on highways in Korea in the first half.

In the US, Hyundai plans to commercialize IONIQ 5-based robotaxis with Level 4 autonomous driving capability through its US mobility joint venture Motional Inc.

In partnership with Uber and Lyft, Motional plans to run a robotaxi service with a human driver in the vehicle for safety in the first half and offer an unmanned self-driving service in the second half.

The chairman highlighted quality and safety as the most important factors to gain customer trust.

“Our commitment to safety is not just about meeting external regulations. It’s about recognizing the priceless value of life and the principle of always making the best effort, which drives us to place the safety of our customers and employees as the foremost priority,” he said. “No great product or technology is complete without the trust of our customers.”

The town hall meeting was also attended by affiliate chief executives, including Hyundai Motor CEO Chang Jae-hoon, Kia CEO Song Ho-sung, Park Chung-kook, president and head of Hyundai-Kia’s R&D Division, and Song Chang, president and head of Transportation-as-a-Service (TaaS) and Vehicle SW Tech Unit at Hyundai Motor Group.

CHANGES IN CORPORATE CULTURE

Chairman Chung also shared his thoughts on changes in corporate culture and his belief that employees’ creativity and proactive change are indispensable for stable and sustainable growth.

“Just as stagnant water quickly goes stale, a culture that does not evolve will be easily contaminated and broken. To make a leap toward a new future, we will foster a culture where bold, new attempts are encouraged without the fear of failure,” he said.

He urged executives to heed the voices of young employees as well as young customers to reflect their tastes and preferences in Hyundai’s decision-making process and new products.

“Let us be bold and not afraid of new challenges. Be assertive and proactive in all matters and value our peers and work closely with open communication,” he said.

“We must create a workplace where employees that work with diligence and enthusiasm are acknowledged and rewarded and can pursue their dreams.”

Write to Han-Shin Park and Hyung-Kyu Kim at phs@hankyung.com
In-Soo Nam edited this article.