"Long Road Ahead, Internal Structural Improvement Needed"…Jeong Eui-seon Chairman's Change Announcement

New York Genesis House Correspondents' Meeting
"Software and Culture Must Change More"

[Asia Economy New York=Special Correspondent Joselgina] "There is a long way to go. If I were to score it, it would be around 30 or 40 points. However, we know how we need to change." This is the score self-assigned by Chung Euisun, Chairman of Hyundai Motor Group, who is redefining the mobility sector beyond the traditional automotive industry framework as an 'innovator.'

On the 13th (local time), Chairman Chung met with correspondents at 'Genesis House,' a brand complex cultural space in Manhattan, New York City, USA, and said, "The definition of mobility focuses on making people's movement comfortable," adding, "Within that, I believe areas such as automobiles, Advanced Air Mobility (AAM), and robotics can emerge, and we are making efforts in various fields."

Recently, Hyundai Motor Group has been expanding the boundaries of mobility by securing core competencies of traditional automobile companies such as electrification and autonomous driving, while also advancing into robotics. Chairman Chung, who is leading these changes, said, "When the founder first started 'Hyundai,' he built it through repair shops, Middle East construction, and the Hangang Bridge, and there were many changes even then," and evaluated, "The current changes at Hyundai Motor Group are also 'ongoing' in the same context." This is a kind of pre-announcement that more changes will continue in the future.

However, Chairman Chung repeatedly emphasized that there is a long way to go. He pointed out, "The hardware part is changing, but the parts that need to change more are software and culture." When asked to score the group's recent efforts at change, he humbly replied with 30 to 40 points, explaining that this is just the 'starting point.' He stressed, "I myself need to change a lot," and "We internally know how we need to change." Specifically, he mentioned plans to be more agile and continue investments.

Chairman Chung, who unveiled the 'Robotics Vision' earlier this year, said, "We are naturally considering acquisitions or collaborations for key technologies or components that correspond to the brain of robot technology," hinting at additional mergers and acquisitions (M&A) following Boston Dynamics. He also suggested that robotics technology could first be utilized in 'logistics' by linking it with the core automobile business. He mentioned, "We are looking at both industrial and personal use," and added, "Personal robots should serve as 'assistants everywhere.'"

Regarding autonomous driving, he expects Level 4 production and sales to be possible by 2026 with current technology. He said, "The important thing is not just starting Level 4, but how complete it is," and added, "Based on U.S. standards, I think we can at least manufacture, produce, and sell cars by 2026." He continued, "There are many laws, regulations, and variables on the road," and predicted, "Since there are fewer unexpected variables in the sky, when UAM (Urban Air Mobility) emerges, that part will be more stable and faster."

Chairman Chung also predicted, "By 2045, electric vehicles including hydrogen fuel cell vehicles will account for 90% or 80%," and said, "We are continuously pushing to make competitive electric vehicles." Regarding hydrogen fuel cell vehicles, which were once rumored to be abandoned, he confirmed the ongoing policy by saying, "We will not stop hydrogen fuel cell vehicles," and "We have goals, but achieving them might be slightly delayed. We will try to accelerate as much as possible."

Some voices express doubts about whether Hyundai Motor Group, which declared itself a next-generation mobility company, can generate future profits. In response, Chairman Chung said, "Our purpose is bigger and focused on customers, which transcends nations," and added, "If we work on that, we will create more jobs, have substantial business, and generate profits to reinvest." However, he also added, "When it's time to quit quickly, we should quit quickly, and this speed needs to be fast." Recently, Chairman Chung was selected as the first recipient of the 'Visionary of the Year' award at the 'Great Disruptive Innovators of the Global Automotive Industry 2022' ceremony hosted by the U.S. news weekly Newsweek.

On the same day, before the press conference, Chairman Chung attended the '2022 New York International Auto Show,' held in New York for the first time in three years, and directly checked the North American automotive market trends. At the World Car Awards '2022 Car of the Year' ceremony held at the auto show, Hyundai's Ioniq 5 swept three awards, including the grand prize 'Car of the Year.' Chairman Chung emphasized, "Although we received many awards this time, receiving awards is not our goal," and added, "Our goal is to challenge for humanity."

Regarding surpassing Japan's Honda in annual sales last year, 35 years after entering the U.S. market in 1986, Chairman Chung gave a cautious answer, saying, "Simply selling many cars is not necessarily good. Quality issues, customer satisfaction, and practicality are important." He emphasized that "We need to make great efforts to change our internal constitution. People need to be healthy inside, have stamina, and good constitution; just having stamina is not enough," indicating that he will continue innovative efforts in the automotive industry.

When asked about the weaknesses of Hyundai and Kia compared to other car brands, he replied, "There is much to do regarding quality," and added, "It is important not only that problems do not occur but also that when they do, they are fixed quickly and without inconvenience." He also cited quality as a task to expand Genesis sales in overseas markets. He continued, "Laying the basics is the path to success," and urged, "There is a long way to go."

Chairman Chung said that Hyundai and Kia's rival at this point is "ourselves." He questioned, "Are car companies necessarily rivals?" and said, "Since we are converging and complementing with IT companies, in a way, they are competitors. The reason we think we must beat ourselves is because of that. We can ally with anyone."

Regarding recent changes in international affairs such as Russia's invasion of Ukraine, he said, "There may be disruptions, but I think there are also opportunities like new regions." Chairman Chung also explained that he is trying to strengthen communication with the outside to enhance predictive capabilities for the future. Given the recent instability and many changes in international affairs, he intends to strengthen sensing functions and respond quickly and nimbly.

When asked about expectations for the Yoon Seok-yeol administration, which declared a 'business-friendly environment,' he replied, "It seems to depend on us regardless of the government," and added, "We will work hard, so we hope for strong support." He also mentioned that expectations for deregulation by the new government are "always there."

Regarding the group's governance restructuring, he said, "There is no correct answer," and added, "We will proceed according to the pace."

Hyundai Motor Company unveiled 'The new PALISADE' at the '2022 New York International Auto Show' held on the 13th (local time) at the Jacob Javits Convention Center in New York, USA. Jang Jae-hoon, President of Hyundai Motor Company (from the left), Chung Eui-sun, Chairman of Hyundai Motor Group, and Jose Munoz, President of Hyundai Motor America, posed together with 'The new PALISADE'.
[Image source=Yonhap News]