Hyundai Motor

HYUNDAI FOUNDER, JU-YUNG CHUNG

The beginning of Hyundai Motor Company dates to April 1946 when founder, Ju-Yung Chung  established Hyundai Auto Service in Seoul, South Korea at the age of 31 years.   The name Hyundai was chosen for its meaning which in English translates to “modern.”  The Hyundai logo is symbolic of the company's desire to expand. The oval shape represents the company's global expansion and the stylized "H" is symbolic of two people (the company and customer) shaking hands.

Hyundai Motor Company was founded by Ju-Yung Chung  and younger brother Se-Yung Chung  in December 1967.  In 1968 the company entered into a contract with Ford motor company to assemble the Ford Cortina and Granada for the South Korean market and continued to produce them until 1976.  Hyundai completed construction of the Ulsan plant in six months and achieved the shortest groundbreaking to first commercial production of any of Ford’s 118 plants.  The eight year journey provided Hyundai with assembly knowledge, blueprints, technical specifications, production manuals, and trained Hyundai engineers.

Hyundai/Ford Ulsan plant, November 1968: It took an average of 80 minutes on each of five assembly lines to complete a Cortina.

The new Ulsan Hyundai plant just prior to opening in 1975 is already producing the Pony Fuel tank inversion testing at MIRA in the U.K. circa 1977 Work begins on the design of Pony 2 with this wood model

THE FORMATIVE YEARS

To stimulate economic growth, the South Korean government formulated a detailed plan for the development and manufacture of Korean cars by 1975.  Four Korean companies: Hyundai, Daewoo, Kia, and SSangyong accepted the challenge.  Hyundai submitting a plan for a new plant with a capacity of 80,000 Korean designed cars to be produced each year.  Hyundai approached 26 firms in five countries to acquire the additional technologies required.

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  10 firms in Japan and Italy for car design
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  4 firms in Japan and the United States for stamping equipment
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  5 firms in the United Kingdom and Germany for casting and forging equipment
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  2 firms in Japan and the United Kingdom for engines
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  5 firms in the United States and United Kingdom for automotive parts

Giorgetto Giugiaro's ItalDesign firm was hired for styling and design while Mitsubishi was selected for engine, transmission, rear axle, and casting technology.  Hyundai contracted with former British Leyland Motor Corp president, George Turnbull and six other British technical experts to serve for a three year period for the development of Hyundai's first indigenous model, the Pony.
Production began in 1975 and the Pony was officially released in 1976.  After the contract with the British experts ended in 1977, Hyundai hired moonlighting Japanese engineers to solve remaining issues.  With the eventual goal to export automobiles to the United States, Hyundai released the Pony for testing, certification, and approval in Europe.  Exports of the Pony soon followed and the Pony subcompact was displayed at the 1978, 56th International Automobile Expo in Brussels.  That same year, Hyundai exported their 10,000th Pony.

Working toward export approval in Europe and eventually the U.S., Hyundai participated in the 56th International Automobile Expo in Brussels This 1978 photo commemorates the 10,000th Pony export.  These are bound for Chile.

1975 Hyundai Pony 1977 Hyundai Pony Wagon 1987 Pony II Pickup with a hemi engine

1985 Hyundai Pony 2

Hyundai made the most of the Pony design as it was available in several configurations.  A Pony pickup was introduced in May 1976, a station wagon in April 1977, and a three door hatchback in March 1980.  A refreshed Pony II was released in January 1982 in a choice of five door hatchback or pickup.  Both the Pony and Pony II offered three Mitsubishi engine choices including a 1.2L, 1.4L (70 hp), and a 1.6L (74 hp).  These engines were SOHC hemispherical with two vales per cylinder.  Starting in 1985 the HD badging was replaced with Hyundai spelled out and air conditioning was offered with the 1.6L engine.  It is interesting to note that a 1.6L GT package included a leather-wrapped Momo steering wheel, tachometer, fog lights, and unique badging.  While Hyundai only expected to export 5,000 Pony IIs to Canada in 1984, over 50,000 were sold.

1983 Hyundai Stellar 1986 Canadian spec Hyundai Stellar 1989 Hyundai Excel

For the next few years, Hyundai applied the knowledge gained from the Pony and set to work on two new projects.  One was a subcompact Pony replacement that would come to be known as the Excel.  The other was a compact sedan to replace the Ford Cortina and would be badged the Stellar.  The 1983 Stellar made use of the rear wheel drive Cortina chassis, but wore a body designed by Giorgetto Giugiaro.  Many luxury options were offered such as power windows, locks, and mirrors, remote fuel door and trunk, and air conditioning.  Likewise several engine choices were offered including 1.4 and 1.6 liter models licensed from Mitsubishi.  In 1987 the Stellar II was released with a redesigned 2.0L engine.  The original Stellar's double wishbone suspension was changed to a MacPherson strut design.  Emission restrictions prevented the Stellar from reaching the United States, but it was exported to Canada and other countries.
The 1985 Excel (also known as the Pony, Presto, and a similar Mitsubishi Precis) was Hyundai's first front wheel drive automobile and was produced until 1994. With the Excel, Hyundai finally earned their much sought approval to enter the United States automotive market in 1985.  The Excel was offered in two formats: a three door hatchback and a sedan.  In addition to a lengthy list of features, the Excel held a starting price of less than $5,000.  Forbes magazine named it one of the top 10 products of the year and the Excel sold a staggering 126,000 vehicles that year, more than any other import.  A facelifted second generation Excel was sold from 1990 to 1994.  Mitsubishi engines were available in 1.3, 1.4, and 1.5 liters.

A 1985 US EPA document, providing Hyundai with approval to enter the US market. This 1986 photograph shows Excels being loaded for the first export to the United States.  1,050 Excels are queued for the journey.

1986 U.S. Excel Hatchback advertisement (click for a larger version) 1986 U.S. Excel sedan advertisement (click for a larger version) 1992 second generation Excel (click for a larger version)

1986 Hyundai Grandeur / Mitsubishi Debonair was a Hyundai/Mitsu joint venture Asan, Hyundai's third plant in the process of construction in August 1989.

RAPID EXPANSION AND GROWING INDEPENDENCE
In 1986 for the follow-on to the Ford Granada sedan, Hyundai rebadged the Mitsubishi Debonair as the Hyundai Grandeur.  The first generation Grandeur was offered until 1992 when Hyundai partnered with Mitsubishi to develop the next generation (which became the third generation Mitsubishi Debonair).  Hyundai designed the body and trim while Mitsubishi was tasked with the powertrain.
The success of Excel led to plant expansions at home and abroad.  Design on a new Korean plant in Asan began in October 1988 and the 40 acre plant was opened in 1990 at a cost of 250 billion won.  Asan specialized in sedans including Sonata and XG/Grandeur.  In North America, Hyundai opened a plant in Bromont, Quebec, Canada.  Over the years the Ulsan plant grew to cover over 4.8 million square meters making it the largest automotive plant in the world.  Ulsan is production home of the Getz, Accent, Elantra, Coupe, Santa Fe, Trajet, Matrix, H-1, H-100 and Terracan.  Another Korean plant in Chunjoo specializes in trucks, buses, and specialty vehicles.
During this rapid period of growth, Hyundai leveraged other Hyundai divisions to optimum advantage.  This included electronics, robotics, steel stamping, and even Hyundai's massive shipyards.

Hyundai's first in-house design, the 1989 Sonata included a Mitsubishi licensed engine but with Hyundai's own multipoint fuel injection Hyundai Scoupe included the first engine designed in Korea. 1991 Elantra was powered by the 1.6L DOHC Beta engine

As Hyundai's engineers gain more experience, they continue to implement more of their own technology and refinement.  This work and the new Asan plant culminate in Hyundai's first entire automobile using their design and technology: the first generation, 1989 Sonata.  Designed with the North American market in mind, the first generation Sonata was styled by Giorgetto Giugiaro's ItalDesign firm.  Some were manufactured in Korea and some in the Quebec plant.  Multiple Sirius engine choices (including SOHC and DOHC options) were offered for various markets.  It should be noted that the engines still implemented Mitsubishi design elements.  American models were originally offered with a 2.4 liter inline 4 with 110hp, but a 3.0 liter V6 was introduced in 1990. Other markets received either a 1.8 liter (95hp) or 2.0 liter (131hp) engine. 
Also in 1989 a sport coupe version of the Excel was introduced as the Scoupe (project code SLC).  The Scoupe sold relatively well and was notable as being the first use of Hyundai's advanced in-house designed, Alpha engine.  Available in both naturally aspirated and turbocharged versions, the Alpha was the first engine designed in Korea.  The original 1.5 liter SOHC engine was later made in a smaller 1.3 liter version.  The Alpha was later used in the Accent and Kia Rio. The Scoupe was sold until 1994.
Anxious to switch to in-house designs, the short-lived Stellar was replaced by the Elantra compact sedan in 1991 (project code J1).  The Elantra is also known as the Avante (2nd generation) and Lantra.  The name Lantra arose because Mitsubishi briefly complained that Elantra was too similar to their Elante trim level.  Lotus also complained of the similarity to the Elan moniker.  Note: the Elantra survived longer than the Elante or Elan and Elantra became the official name worldwide in 2001.  The Elantra was powered by the 1.6L inline 4 cylinder Beta engine featuring a cast iron block and aluminum DOHC cylinder heads, MFI fuel injection, 4 valves per cylinder, and forged steel connecting rods.  It produced about 114 hp at 6,000 rpm.  The top speed was 116 mph and it made 22 mpg/city.

Second generation 1993 Sonata The second generation Elantra was sold briefly as a wagon

The second generation Sonata was introduced in 1993 (project code Y2) featuring a more modern shape reminiscent of the Mazda 626 and Honda Accord.  Engine choices included a 2.0L inline 4 and an optional SOHC Sigma 3.0L V6 producing about 150 hp.  This Sonata was originally produced in both South Korea and Canada but mostly due to falling sales, the Bromont, Quebec plant was shuttered in 1994.
A second generation Elantra debuted in 1995 (project code RD) in sedan and station wagon styles.    Engine choices included the 1.6 and 2.0L Beta as well as a 2.0L turbodiesel (not in the U.S.).  The Elantra was facelifted in 1998.
The Accent subcompact was introduced in 1995 (project code X3) to replace the Excel.  It is also known as the Pony, Excel, Verna, and Brisa.  The Accent was extremely popular in Australia and is still rated as one of the most popular imports of all time.  In 1998 it achieved a 5.5% share of the Australian market.  A second generation, larger Accent was introduced in 2000.  Several Alpha engine choices were available including the 1.5L SOHC inline-4 with 92 hp, 1.5L DOHC inline-4 with 101 hp, and the 1.6L DOHC with 104 hp.

Introduced in 1995, the Accent replaced the Excel and was a very popular export especially in Australia. A 1999 Dynasty.  For about seven years the Dynasty was sold in a few markets.

Hyundai introduced a large, premium sedan in 1996, the Hyundai Dynasty.  It was only offered in a few markets but was produced until about 2003 and offered a choice of the Sigma 3.0 and 3.5L V6 producing 205 and 225 hp respectively.  The Sigma has a cast iron block and aluminum DOHC cylinder heads with MFI fuel injection, 4 valves per cylinder, and forged steel connecting rods.  Note: this engine also powers the 2001 Kia Sedona minivan, Santa Fe, XG350, Kia Amanti, and Kia Sorento.

After a one year break, the 1996 Tiburon replaced the Scoupe.

After a short break following the end of Scoupe production, Hyundai introduced a new coupe in 1996, the Tiburon (project code RC).  In various markets, it is also known as the Coupe, Turbulence, and Tuscani.  It was initially offered with a choice of a 1.6 or 1.8L Beta engine with 114 or 129 hp respectively.  The Tiburon was first introduced to the United States in 1997 with a 1.8 or 2.0L Beta engine.  The 2.0L produced 135 hp.  A redesign in 1999 offered a newer 2.0L Beta engine.

The third generation 1996 Sonata incorporated  more European design elements Fourth generation 1999 Sonata

Sonata's third generation release in 1996 (project code Y3) reintroduced European design elements with a more upmarket look.  As with the previous generation an inline four was offered as well as the 3.0 liter Sigma V6.  However, it was the fourth generation released in 1998 (1999 in the United States) that the Sonata began to take off in North America.  The European styling influence remained, and the design was acknowledged by members of the press as attractive and original.  Four engine choices were offered including 1.8L, 2.0L, 2.4L, and an impressive Delta 2.5L V6 producing about 170 hp.  This introduction coincided with the 10 year, 100,000 mile warranty in the United States.
A subcompact economy car, the Hyundai Atos was introduced in 1997.  It is also known by the names Atos Prime, Amica, Dodge Atos, Santro, and Kia Vista.  A second generation version was introduced in 2003.

ASIAN FINANCIAL CRISIS
Asian financial markets and companies faced a difficult period at the end of the 20th century.  Some smart companies like Hyundai made the best of a very difficult situation.  It was during this time that Hyundai reduced its workforce and sold a number of assets.  Kia Motors was faltering and did not have the resources needed to continue.  In 1998 Hyundai Automotive purchased a significant amount of Kia anticipating the synergy of the combined competitors.
Hyundai's largest and luxurious sedan was introduced in 1999 as the Equus and is sometimes called the Centennial.  It was based upon the front wheel drive Mitsubishi Proudia.  A redesign is due in 2006 with rear wheel drive and an optional V8 engine.  A version is expected to be released in the United States to gauge public reaction to a luxury Hyundai line.
In his drive to build the world's largest car and truck company, DaimlerChrysler Chief Executive Jürgen Schrempp purchased a 10.5% stake in Hyundai Motor in June 2000 with the plan to build small cars and 100,000 trucks a year in a 50-50 joint venture.

The facelifted 2002 Elantra GT  featured sportier handling and leather seating

The Elantra appeared in its third generation in 2000 (project code XD).  The wagon was no longer available and was replaced with a 5 door hatchback.  While it bares a compact exterior, the EPA classified it as a midsize because of the generous room inside.  The 1.6 and 2.0L Beta engines provided good power and fuel economy rated at 27 mpg city and 34 mpg highway.  In 2002 an updated Elantra GT featuring leather seating and a sharply styled back was release.  The Beta II engine with CVVT was also offered on subsequent versions of the Elantra sedan.
Unlike the first generation, Grandeur's 2001 second generation model (also known as the XG300 and XG350) did not incorporate Mitsubishi technology.  Rather it offered a choice of the Sigma 3.0 or 3.5L V6.  These engines produced 182 and 200 hp respectively.  The Sigma featured a cast iron block, aluminum DOHC cylinder heads, MFI fuel injection, 4 valves per cylinder, and forged steel connecting rods.   It is interesting to note that this is perhaps the only time that Hyundai's internal project code (XG) was publicly used in the name of a vehicle.  The United States XG350 received a facelift in 2003.

Hyundai introduced a third generation XG300 / Grandeur in 2001 sans Mitsubishi

CATALYST FOR CHANGE, MONG-KOO CHUNG

Father and son: Ju-Yung and Mong-Koo Chung in 2000

The leader of the Hyundai-Kia Automotive Group was changed by founder, Ju-Yung Chung in 1999 after the Asian financial crisis and government mandated breakup of the Hyundai Group.  Previously the automotive group was being managed by the founder's brother.  His son, Mong-Koo Chung had performed well managing Hyundai's after-sale service and dealerships.  Mong-Koo was the catalyst of an extreme turnaround for the company.  During the 80s and 90s, his uncle focused on Hyundai Automotive's growth and producing as many cars as possible.  Product quality and customer satisfaction suffered.  From his experience working with dealerships and angry Hyundai customers, Mong-Koo knew well the damage to the Hyundai reputation and the high cost of warranty repairs.
When Mong-Koo began broadcasting his intention to turn Hyundai into a top-five automaker, few outside the company took him seriously. Hyundai, like many family-controlled Korean companies, was ultra-hierarchical and slow to change.  Managers rarely cooperated with one another and division chiefs ran their operations as personal fiefdoms.  "When a problem occurred, each division would blame other divisions," says Lee Hyun Soon, Korean head of R&D.

Hyundai Chairman, Mong-Koo Chung

Mong-Koo's first step was to replace members of top management with engineers.  He formulated a strategy to challenge Toyota for quality.  Extensive work with consultants, J.D. Powers, and benchmarking of the world's best automotive companies followed.  He also sent teams to America to study weather, road conditions, and driver habits.  Quality control staff increased tenfold to 1,000 and they reported directly to him.  Employees were encouraged and rewarded to offer suggestions.  One example that is told is that a worker reported the Sonata and XG350 sedans had differently shaped spare tire covers.  Sharing the cover saved Hyundai about $100,000 per year.
There are reports that the Korean government requested that Mong-Koo step down as Hyundai Automotive's chairman in 2000 so that it could be led by a non-family member.  Mong-Koo refused, arguing that he was best qualified to lead the company.
Mong-Koo Chung has earned a reputation for an obsession with quality.  The new Sonata's launch in Korea was delayed for two months for 50 items management wanted fixed.  Employees in the Asan factory worked feverishly to correct items such as a tiny error in the size of the gap between two pieces of sheet metal near the headlight.  The problem was not visible to the human eye and was narrower than 0.1 millimeter.  Numerous managers and employees worked on the problem for 25 days before it was solved.

The Sonata based Santa Fe crossover entered the market in 2001

Hyundai entered the crossover, sport utility market in 2001 with the Santa Fe (project code SM).  In addition to being a big hit for the company, it was a turning point and major milestone of the company's restructuring.  Initially the Santa Fe was offered with a choice of two engines: a fuel efficient but underpowered Sirius 2.4L (138 hp) or the Delta 2.7L V6 (about 170 hp).  Note: the initial introduction of the 2.7L Delta contained a flaw which Hyundai corrected for owners and solved in future versions of the Delta engine.  Outside of the US, a 2.0L common rail turbo diesel (CRTD) was available.  Reflecting Hyundai's new leadership, Hyundai listened to suggestions from customers around the world and released a rare 2002 1/2 model refresh incorporating a larger fuel tank and other changes.  Responding to additional customer requests more modifications were made in the 2003 model including gas strut hood lifts, sunroof, illuminated glovebox, and the Sigma 3.5L V6 engine with 200 hp.  Hyundai continued to make customer requested improvements with each subsequent model year.
Hyundai introduced a new subcompact, city car in 2002, the Getz.  Available in a choice of 1.1, 1.3, or 1.6L engines and a 1.5L common rail turbo diesel.  Reviews frequently mention the manual transmission has the best feeling shifter yet.  Fuel economy for the various conventional engines is in the high 40s with over 60mpg for the diesel.

2002 Sonata makeover included more European styling cues than ever before Sonata-based Tiburon is favorably compared to a famous Ferrari design 2003 Hyundai Terracan includes serious offroad ability and luxury features like Xenon healights

In keeping with Hyundai's renewed focus on customer satisfaction, the Sonata likewise received a dramatic facelift in 2001 (2002 in the U.S.).  The exterior took on a much more European look reminiscent of the third generation but with hints of Mercedes and Jaguar.  The interior was restyled and the seats replaced with the more substantial seats used in the XG.  The drivetrain was updated and improved to include the Delta 2.7L V6 and Shiftronic manually shiftable automatic transmission.  The redesign was well received with sales increasing to higher record levels with each passing year.  However, Hyundai did settle a class-action lawsuit over published horsepower numbers on the Sonata, Santa Fe, and to a lesser degree Elantra.  Prior to the lawsuit, Hyundai voluntarily offered owners a choice of several compensations including an extra year of full warranty.
A brand new second generation Tiburon appeared in 2003 (project code GK).  Almost all of the press was favorable and praised the style and handling of the car.  Numerous automotive writers compared the new car's lines to the famous Ferrari 456GT.  Though acceptable, power for this sports coupe was not Ferrari like and featured the Delta 2.7L V6 with about 172 hp.
Introduced in 2002, the Hyundai Terracan offers a CRTD or Sigma 3.5L V6 engine. This serious SUV sports a Borg Warner, shift on the fly transfer that can engage 4WD at up to 100km/hour, and a limited slip differential at the rear wheels.  The name Terracan is a fusion of terra: Latin for earth or terrain and khan: Turkish or central Asian for ruler or king, as in Genghis Khan.
Plans are underway to bring an SUV larger than the forthcoming Santa Fe to the U.S.  It would be unwise to think that Hyundai engineers do not know how to build a serious body-on-chassis off-roader.   In addition to the Terracan, they have had many years of experience building their own versions of the Mitsubishi Pajeros as the Hyundai Galloper for the South Korean market.
A MODERN RENAISSANCE

HMMA is the most automated automotive plant in the world

In 2002 Hyundai initiated its plan to open a manufacturing plant in the United States.  Eventually 1,744 acres of pasture in Montgomery, Alabama was selected for the future plant.  The grand opening of the $1.1 billion plant occurred on May 20, 2005 and was attended by thousands including Alabama governor Bob Riley, former President George Bush, and Chairman Mong-Koo Chung.  While the plant employs over 2,000 workers, more than 72 suppliers have located throughout North America to support the new plant creating more than 5,000 additional jobs.  The 2-million square-foot manufacturing plant includes a stamping facility, paint shop, vehicle assembly shop, two-mile test track, and an engine shop.  In May 2005, the facility marked the official start of production with its first saleable 2006 Sonata.  Hyundai Motor Manufacturing Alabama (HMMA) will produce 300,000 vehicles per year at full capacity including the Sonata and Santa Fe.  Using robotics, assembly methods, and a team structure tested in Asan, the plant is acknowledged as the most automated in the world.
The first three stages of production: stamping parts from raw metal, welding them into a frame, and painting the chassis are all done with over 300 robots that move materials from beginning to end without being touched by human hands. The most labor intensive part of the process is the general assembly stage, where more than half the line workers are employed to add components.  Once a frame is received from the first three stages, a car can be assembled in six and a half hours.  Note: a Honda plant with similar production capacity in North America requires nearly twice as many workers.  Many cars receive a complete inspection that includes a 2.3 mile road test, a brake and alignment check, and a five-minute shower in a water test booth to check for leaks and paint blemishes.

This photo captures guests arriving for the grand opening flying over HMMA prior to the grand opening ceremony. After robots complete the first three stages of assembly, a Sonata is completed in 6.5 hours

Sales reached 419,000 in the U.S. in 2004, up an astounding 360% since 1998.  With the exception of a temporary slowdown in sales in the home Korean market, Hyundai sales are booming around the globe.  Sales increased 21% in Europe for 2004 and Hyundai held a 17% share of the automotive market in India making it the largest foreign car company.  Perhaps more surprising: in China's hotly contested emerging car market, Hyundai's joint venture with Beijing Automotive increased sales 62% for 2005 representing 233,688 cars. Growth came mostly from the Elantra model, the mainstay of Beijing's taxi fleet and the mainland's second best selling sedan after China's own Xiali.  The company aims to boost production and sales by about 30 percent in 2006 to 300,000 units. Targets call for China production capacity of 600,000 units by 2008.    Hyundai is the number one brand in the growing Russian economy.  Sales there increased 72.5 percent in 2005 representing 87,457 automobiles.  With a compounded annual revenue growth of 20% over the past five years, Hyundai has been the world's fastest-growing major automaker since 1999, according to Lehman Bros.  Even Toyota vice chairman Fujio acknowledged the company that is growing in Toyota's rearview mirror. "Hyundai has quality and prices that have caught customers' attention, not to mention ours," he said at an auto conference in August 2005.
DaimlerChrysler sold the 10.5% stake it held in the Hyundai Motor Company in May 2004, ending the four year partnership.  In a joint statement, the two automakers agreed to “realign the alliance in order to reflect more realistically current market conditions."  Under the agreement, Hyundai Motors also assumed DaimlerChrysler’s 50-percent stake in Daimler Hyundai Truck Corp., a joint truck engine factory in South Korea. The two also scrapped an earlier agreement for jointly making trucks.  The deal started unraveling in September 2003 when DaimlerChrysler announced an alliance with Beijing Automotive to produce Mercedes-Benz sedans in the fast-growing Chinese market.  Hyundai already had formed an exclusive partnership with Beijing Automotive a year earlier to manufacture sedans in China.

The 2004 Sonata is named the most reliable automobile with only two problems per 100

Mong-Koo's zero defect mantra is succeeding and Consumer Reports rated the 2004 Sonata the most reliable car in America for 2004 with only 2 problems per 100 vehicles.  Likewise, Hyundai rose to second place in J.D. Power and Associates' 2004 survey of initial car quality, tied with Honda and trailing only Toyota.  In 1998, Hyundai ranked among the worst in terms of initial defects. The comeback "is astounding," says Chance Parker, executive director at J.D. Power in Westlake Village, California. "We really haven't documented that level of turnaround in that period of time. They've adopted a quality mentality they didn't have before."  Former Hyundai Motor America CEO Robert Cosmai confirms:  "The change really started with Hyundai Motor Company Chairman Mong Koo Chung. Quality is his mantra.  The Chairman is very happy and pleased with these outstanding results, but he points out that this is just the first step and that we are just getting started."
Hyundai's R&D budget has expanded 110% since 1999, to $1.6 billion for 2005.   The  South Korean R&D headquarters has expanded considerably and now features a three dimensional cinema for viewing virtual models of new cars.  In each year since 2002, Hyundai has filed a record number of patents for new technologies.

Joel Piaskowski, Chief Designer and head of the California Design Center

Hyundai invested $200 million to open or expand research-and-design centers in California, Michigan, and near Frankfurt, Germany.  In January 2003 Hyundai and Kia's California design teams moved from Fountain Valley to the new 90,000 square foot facility in Irvine.  The center employs about 100 designers, engineers, and model makers with the task of designing vehicles for American tastes.  Chief Designer Joel Piaskowski, was brought over to head the design center from Detroit.  The center houses advanced technology a visualization system from Blue Water Technologies.  The designers and math modelers utilize the latest Alias/Silicon graphic workstations while clay modelers sculpt new design and proposals on five-axis milling machines. 
In January 2005, Hyundai opened a 4,300 acre $60 million proving ground in California's Mojave Desert.  It includes a 6.4 mile oval track, 2 million square foot vehicle dynamics area, a 2.75 mile winding track, a 3.3 mile section of hills and special road surfaces, and 30,000 square feet of office space for about 50 staff.  The track will be used for testing both Hyundai and Kia automobiles.

2005 Hyundai Tucson offering standard electronic stability control, a first for a small SUV The U.S. 2006 Sonata LX

Hyundai expanded the lineup in 2005 to include a small, Elantra-based crossover SUV, the Tucson (project code JM).  Even the basic GL models include a long list of standard safety features including head curtain airbags and electronic stability control.  Engine choices include the Beta II 2.0L inline 4 with CVVT (140 hp), Delta 2.7L V6 (173 hp), or in some markets, a 2.0L common rail turbo diesel.  AWD can be added for about $1,500 extra and features a "torque on demand" system which runs in 2WD mode until it detects a lack of traction.
A fifth generation Sonata (NF project code) was launched in 2005 as a 2006 model incorporating competitive and industry leading features.  Like the first generation model, it was designed with the North American audience in mind and includes design influence from  Michigan and California.  The Sonata is Hyundai's first release reflecting a new focus on safety.  Reports indicate the company crashed 120 early Sonatas to perfect the structure and best engineer it to absorb and channel impact energy around the passenger cabin.  It has earned five star safety ratings for both front and side impacts.  Even base models include more standard safety features than any other car in a similar class including head curtain airbags, electronic stability control, traction control, antilock brakes, brake force distribution, and active headrests.  Several engine choices are offered including new aluminum Theta 2.0 and 2.4L engines with CVVT (162 hp) and a new aluminum Lambda 3.3L V6 with CVVT (235 hp).  Some reports indicate a hybrid Sonata may be sold in 2007.

Fourth generation 2006 Azera/Grandeur The third generation 2006 Accent sedan is more refined and larger than previous generations

A fourth generation Grandeur (project code TG) was also launched in 2005.  In North America it is known as the Azera.  Built on a larger Sonata platform, the Grandeur/Azera includes a larger 3.8L version of the Lambda engine (263 hp).  It has more interior room than the BMW 760i, Mercedes S Class, and Toyota Avalon.  The front-wheel-drive Azera rides on front double wishbones and a rear multilink suspension, with 16 or 17" wheels. At 192.7 inches long, 72.6 inches wide, and 58.7 inches tall, the Azera is 0.8 inches longer and wider and 2.8 inches taller than the outgoing Grandeur.  Safety features are similar to Sonata with the addition of side airbags for rear seat passengers.  Luxury features include rain sensing wipers, power rear sunshade, rear air vents, dual climate control, electroluminescent dash and power adjustable pedals and seats.
Hyundai introduced the third generation Accent at the 2005 New York International Auto Show (project code MC).  The sedan reached dealerships in December 2005 as a 2006 model.  Passenger space has increased considerably over previous models.  It is one inch wider, 1.8 inches longer, and three inches taller than the previous generation.  Only the GLS trim level will be offered in America including six airbags, choice of a five speed manual or four speed automatic, and an updated Alpha II 1.6L inline four cylinder engine with CVVT (110 hp).  Fuel economy is rated at 35/36 mpg on the highway.  A sporty coupe concept has been shown and is expected in 2006 or 2007.  Likewise Hyundai has shown hybrid versions of this new Accent indicating it could reach the Korean market in 2006.  It was fitted with a Beta II, 1.4L CVVT engine (90 hp) plus a 16 hp electric motor which Hyundai indicates boosts fuel economy by 44%.
IN MEMORIAM, JU-YUNG CHUNG

It is worth noting that Hyundai founder, Ju-yung Chung  was one of the civilian forces at the head of the effort to rebuild the war torn cities of Vietnam in 1977.  He was made an honorary Commander of the British Empire by England's Queen Elizabeth II.  In 1982 he was the first non-American entrepreneur and philanthropist to receive an honorary degree in business from George Washington University.  He received many other honorary degrees including a doctorate from John Hopkins University.  Additionally he channeled a large amount of Hyundai profits into philanthropic and civic causes throughout North and South Korea building hospitals, schools, and apartment complexes for Hyundai workers. 

Ju-Yung Chung (1915 - 2001) is a Korean national hero. To my way of thinking, there may be miracles in religion but not in politics or economics...  We succeeded because our people devoted their enterprising spirits.  They used the force of their minds.  Conviction creates indomitable efforts.  This is the key to miracles...  Man's potential is limitless.  Ju-Yung Chung

In March of 2001, Ju-Yung Chung was admitted to Seoul's Asan Medical Center.  His critical case of pneumonia worsened and he died on March 21st, 2001 in one of the hospitals constructed by his charity.  Ju-Yung Chung  was mourned as a national hero in Korea and was credited with rebuilding a war torn and impoverished nation.  Hyundai officials revealed that in keeping with his wishes that "he had come empty handed and he would leave empty handed," he gave more than $57 million to the business he founded in 1946.

Source: Hyendai Motor