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Hundai
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Subsidiary
  • Kia
    • Owned by Mitsubishi (just 4.1%)
    Introduction Somewhat like Japan `s Mitsubishi and Subaru, Hyundai Motor is part of the giant Hyundai group whose variety of business monopolies the economy of S. Korea. The car division is also proud to be the Korea no. 1 car maker, easily beating the second place Daewoo. The drastic economy recession in 1998 dropped its domestic demand shortly, but in fact the benefit to Hyundai was more than loss, since the no. 3 car maker Kia bankrupted and was then absorbed by the no. 1. This further strengthen Hyundai s position as the strongest Korean car maker. 

    The ex-competitors are now merging their platforms to take out the benefit of acquisition. By 2005 the total platforms of the group will be reduced from today s 23 to 7. It also plans to produce at least 2.5 million cars in 2004. 

    Tiburon - it changed Hyundai's image 

    Unlike Daewoo, Hyundai has been working hard to establish its own car development ability since the 80 s. By the early 90 s, its cars were nearly 100% self-developed, although the influence of Mitsubishi is still seen occasionally today. As the Japanese car maker holds a minority share of 4.1%, there are still technology transfer, such as providing V6 engine, semi-auto transmission and (soon) GDI technology.  

    Undoubtedly, it makes some world-class cars, such as Atoz and Tiburon (Coupe), but the selling points for other models remains to be the low price. The Japanese story told us that when a brand is going upmarket, doing as good as competitors is not enough. Hyundai (as well as Daewoo) must do 110% in order to get the world s recognition.
    Sales figure Expected sales of 1999 : 
    Hyundai : 1.25 million cars and trucks 
    Kia : 837,000 cars and trucks 
    Total : 2.09 million cars and trucks
    Location Hyundai main plant : Ulsan  
    Kia plants : Asan, Sohari 
    6 R&D centers in Korea, 1 in Detroit, 1 in Frankfurt and 1 in Japan.  
    Overseas design studio in LA.
    Brief History

    Hyundai

    Hyundai Motor was established in 1967 by the Hyundai group. However, for a long period it was just producing cars based on the design supplied by Ford UK. The first self-developed model was the 74 Pony, but under the guidance of Mitsubishi. Engines also came from the Japanese design, while the styling was penned by Italdesign. The car earned Hyundai the name as the biggest Korean car maker which is still unchallenged today. 

    The second generation Pony of 1982 marked another milestone : the first large scale export. Like the Japanese, Korean s industry was (and still is) very export-oriented. The Pony small car, benefited by the wage advantage of Korea labours, stormed the Canadian small car market in 1983. The world started to realise the rise of another Eastern car making nation. 

    The first self-designed engine appeared in 1991, which signalled the "real" autonomy of R&D. Sales continued to grow in the whole 90 s as model range expanded and quality improved. In 1998, Hyundai took over the bankrupted Kia. 

    Kia

    Kia started producing cars in 1974 under Peugeot and Fiat s licenses. In 1986. it partnered with Ford, produced the Festiva (Pride) for Ford. The 1992 Sephia and next year s Sportage SUV reflected the independence of the company which started exporting cars under its own name. It became the third largest Korean car maker but over-expansion was hit by the Asian economy crisis in 1998. Kia bankrupted and was acquired by Hyundai in the same year.