Seoul 2009: Hyundai Motor in Brief

Established in 1967, Hyundai Motor Co. has grown into the Hyundai-Kia Automotive Group, which was ranked as the world’s fifth-largest automaker in 2007 and includes over two dozen auto-related subsidiaries and affiliates.

Hyundai Motor, which exported its first independently-made vehicle, the Pony, in 1976, now exports over one million high-quality vehicles ranging from sedans, SUVs, trucks and buses.

In 2008, Hyundai Motor sold about 2.8 million cars worldwide, up seven percent from 2007.
Hyundai Motor, South Korea’s largest automaker, sold 570,962 cars in the Korean domestic market in 2008, reaching a market share of about 50 percent.
Outside Korea, Hyundai Motor sold about 2.2 million cars in 2008 in over 193 countries through some 6,000 dealers.

Global Operations:

Employing over 75,000 people worldwide, Hyundai Motor is implementing a new global policy aimed at localization. This includes product development, design, sales, marketing, and consumer services to satisfy local customers’ tastes as well as that of the global market.

Currently Hyundai Motor has five overseas plants in the U.S., India, China, Turkey and the Czech Republic. The company has plans to build two more in Russia and Brazil. Hyundai Motor today has a combined global production capacity of about 3.6 million units a year (Korea Domestic: 1.7 million / Overseas: 1.9 million)

Korea Production:
Hyundai has three plants in Korea that have a combined capacity of about 1.7 million units a year. The plants are located in Ulsan, Asan and Jeonju.

The Ulsan plant is the world’s single largest automobile plant in the world. The mammoth-sized Ulsan complex sits on 1,200 acres and is Hyundai Motor’s main production plant comprised of five independent plants. It employs over 34,000 workers capable of producing 5,600 vehicles daily. The plant also has its own port where up to three 42,000 ton ships can anchor at the same time. The plant is the birthplace of the Korean automobile industry and is a self-contained facility that operates its own fire station, hospital and security vehicles. The plant is also equipped with cutting-edge facilities to protect the environment, such as a waste water and sewage treatment plant securing Hyundai Motor’s position as a green-minded company.

The Asan Plant, which mainly produces passenger vehicles for export, rests on 440 acres with a 4 million sq. ft. building that consists of production lines for machine press, auto frames, paint, assembly, engine and a materials plant. It is an entirely self-contained, independent automobile production complex that is capable of producing 300,000 mid to large size passenger vehicles annually.

The Jeonju Plant occupies a total of 317 acres of land and has 4.3 million sq. ft. in production space. It specializes in producing mid- to large-sized buses of 2.5 tons or more, trucks, and specialty vehicles. The Jeonju plant is capable of producing 125,000 units per year and in terms of the plant’s scale, it is deemed to be the world’s largest commercial vehicle production plant.

Overseas Production:

U.S.:
In May 2005, Hyundai Motor opened a $1.1 billion plant in Alabama, the company’s first North American manufacturing facility, which is also its most technologically advanced. Hyundai Motor Manufacturing Alabama (HMMA), which has a maximum capacity of 300,000 vehicles per year, began operations with the production of the 2006 Sonata sedan. The plant started producing the 2007 Santa Fe sport utility vehicle in the spring of 2006.

Within one year, HMMA reached 10th place in the product quality category among 37 plants in North America. In 2008, HMMA was chosen as the most productive plant in North America in the Midsize CUV category, for its Santa Fe model. HMMA took 22.6 hours to complete a Santa Fe, one of Hyundai’s best-selling SUVs.

HMMA brings Hyundai Motor’s commitment to the North American market full circle. Since 2001, Hyundai Motor has invested more than $200 million in design and testing facilities throughout the U.S. With a $30 million design center in Irvine, Calif., a $60 million proving ground in the Mojave Desert in California, and a $117 million technical center in Ann Arbor, Mich., Hyundai Motor is able to bring vehicles to life from design, to testing and now to production, in the United States.

India:
Hyundai Motor India (HMI), a wholly-owned subsidiary of Hyundai Motor, is the second-largest carmaker in India. Hyundai opened its second plant in India in February 2008, a decade after it began operations in the country. The US$1 billion new plant, which was completed in a record 13 months, doubles Hyundai Motor’s capacity in India to 600,000 units a year. The new plant is located within the same 525 acre plot in Sriperumbudur, in the state of Tamil Nadu, adjacent to the first plant.

The new plant is dedicated largely to the production of Hyundai Motor’s latest offerings in India — the i20 and the i10, winner of the most prestigious ‘Car of the Year’ awards from the leading automotive magazines and TV channels like Business Standard Motoring, CNBC-TV18, NDTV Car & Bike and Overdrive magazine.

Building the i10 (A-segment) and i20 (B-segment) cars for world markets, the Indian subsidiary is Hyundai’s de facto global hub for small car production. HMI’s export destinations are expected to increase from 100 to 110 countries by the end of 2009. In 2008, HMI’s sales jumped almost 50 percent to 489,281 units from 2007.

China:
In February 2008, Beijing Hyundai Motor Company (BHMC) set a record by surpassing one million units in cumulative production in just five years and two months, the shortest period among automobile companies in China.

Hyundai Motor opened its second manufacturing plant in Beijing in April 2008, two years after it began construction for the US$ 790 million facility. The plant, a 50-50 partnership with Beijing Automotive Holdings, doubled Beijing Hyundai’s production capacity to 600,000 units.

Beijing Hyundai began operations in China by producing Sonata in December 2002 and in 2003, its first full year of sales reached 52,129 units, making Beijing Hyundai China’s thirteenth largest automaker. Sales soared to 144,088 units in 2004 and by 2005, sales had catapulted to 233,668 units making Beijing Hyundai China’s fourth best selling brand. In 2008, Beijing Hyundai’s sales rose 27 percent to 294,506 units from 2007. Beijing Hyundai now builds six models: EF Sonata, Ling Xiang (NF Sonata), Elantra, Yuedong (new Elantra HD), Tucson and Accent.

Turkey:
Hyundai Motor began operations at its Turkey plant, located in north western Turkey, from July 1997. The plant, Hyundai Assan Otomotive Sanayi Ve Ticaret (HAOS), was expanded in 2006 and produces the Accent and Matrix vehicles.

The facilities’ maximum capacity is 100,000 units per year. In 2008, the plant produced 81,590 units, of which it exported 74 percent.

Czech:
Hyundai Motor began construction of its 1.1 billion euro manufacturing plant in Nosovice, Czech Republic in April 2007, and began production in November 2008. Hyundai Motor Manufacturing Czech (HMMC), a fully-owned subsidiary of Seoul-based Hyundai Motor, will have the capacity to build 200,000 vehicles annually beginning with the i30 C-class five-door hatchback and later, a station wagon version, called Hyundai i30cw. In the second phase, an additional 100,000 units per annum of capacity will be added by 2011 to build a third model.

As part of its preparations to better serve the needs of its European customers, Hyundai Motor invested $50 million Euros in a European Design and Technical Center in Russelsheim, Germany which designed the i30 hatchback and estate wagon. In 2007, it opened a new European sales and marketing headquarters in Offenbach, Germany to better support local sales. The Czech plant is the final link in the chain providing Hyundai Motor will the full range of local capabilities to serve the European market from design and engineering, to production, marketing, sales and after-service.

Russia:
Hyundai Motor in June 2008 began construction of its plant in St. Petersburg to establish a local production and sales base in Russia, which will be a stepping stone to expansion in the CIS and Eastern Europe.

Hyundai Motor plans to invest a total of 330 million euros in the plant, which is scheduled to begin production in January 2011. According to initial plans, production is expected to reach maximum capacity of 150,000 units a year by the end of that year. For the first year of 2011, Hyundai Motor plans to make new, small- to mid-size models strategically targeting the local market. Other models will be added according to local market conditions. The plant, which will include storage facilities and a shipping area, will be built on an area of about 2 million square meters. The actual area of the buildings and facilities will take up about 83,000 square meters.

In 2008, Hyundai Motor was the No. 1 imported car brand with sales of 192,719 units, or a 9.6 percent market share in Russia.

Future cars:
At the 2008 Geneva Motor Show, Hyundai introduced an exciting array of innovative technologies through “i-Mode,” an MPV (Multi-Purpose Vehicle) concept. The company’s European Design Center in Russelsheim collaborated on the i-Mode projec with industry leaders including Bayer for advanced materials, Keiper for seats, and LG for IT technology.

Another product of the European Design Center, QarmaQ was built with lightweight, recyclable materials in partnership with SABIC Innovative Plastics™ and it created quite a sensation when it made its debut at the 2007 Geneva Show. The company’s California Design Center in Irvine and Japan Design Center in Chiba are also key outposts in Hyundai’s efforts to stay on the cutting edge of auto design.

Today, at the Seoul Motor Show 2009, Hyundai Motor will unveil its latest concept, the HND-4.

Engines:

Tau(τ) Engine (2008)
Hyundai’s 4.6-liter Tau V-8 engine, which debuted in the premium Genesis sedan this year, was named one of “Ward’s 10 Best Engines” for 2009 by Ward’s Auto World. This marks the first time that a Hyundai engine has appeared on the prestigious “Ward’s 10 Best Engines” list.

“Tau” is the latest in the series of engines to be independently developed by Hyundai Motor and takes its name from the Greek letter Tau (τ). Hyundai Motor wanted luxury car performance to be within the reach of the many, not just the few. From this point of view, the Genesis was created to establish a new paradigm for value in the premium car market. After four years of intensive effort, the dream has become a reality with the Tau engine. Tau has a maximum output of 375 horsepower and 333 pound-feet of torque using premium fuel. The 375 horsepower corresponds to 81 horsepower per liter, which is the highest among competitors in its class.

U2 Diesel Engine (2008):
The U2 is Hyundai's newest, cleanest, quietest and most fuel efficient diesel engine for compact passenger vehicles. Displacing 1,582cc, the U2 utilizes a second generation common rail diesel injection system to deliver class-leading performance. Total power output measures an impressive 95kW@4000rpm. Torque is rated 260Nm@1900~2750rpm--best in its class, and more than 90 percent of the maximum torque is achieved at 1500rpm. A variable geometry turbocharger, variable swirl control system and an electronically controlled exhaust gas recirculation (EGR) cooling system help endows the U2 with outstanding fuel economy (4.7l/100km) and low emissions (125g CO2 /km). Moreover, the U2 is fully compliant with the latest Euro4 emission standards. The optional particulate filter reduces particulate matter to Euro 5 standards which take effect next year. The U2 is also the quietest engine in its class, measuring up to two dBA lower than leading competitors.

S-Engine (2006):
The S-Engine, the world’s highest quality V6 diesel engine, was developed solely by Hyundai Motor. It achieves a powerful performance, generating 240 horsepower, while boasting the most economical fuel efficiency available today. It not only offers fast response time, but also overcomes limitations of existing diesel engines. Its power output is equivalent to gasoline engines and it also meets the Euro 4 Environmental Regulation standards, proving to be an advanced diesel engine with top quality performance, fuel efficiency, and environmental friendliness. The S-Engine is currently available in the Veracruz, Hyundai’s luxury SUV.

Hyundai Blue Drive:
To address the global warming problem, Hyundai Motor in November 2008 announced “Hyundai Blue Drive,” an eco-initiative which will bring to market a range of eco-friendly products and technologies designed to reduce CO2 emissions, improve fuel efficiency and achieve a fleet average of 35 miles per gallon by 2015, five years ahead of government requirements in the U.S., Hyundai’s biggest overseas market.

In 2009, Hyundai will introduce high mileage “Blue” editions of its Accent and Elantra models. These models will deliver outstanding fuel economy without adding thousands of dollars to the price. In fact, “Blue” models will be priced lower than other models, assuring they will be both efficient and economical.

Hyundai is focused on achieving an excellent MPG-per-dollar ratio with these models. Fuel-efficient modifications include low-rolling-resistance tires, enhanced aerodynamics, revised engine calibrations, fuel-efficient steering systems and reduced final drive ratios to deliver even higher mileage and lower emissions than today’s models. These new high mileage editions will be identified with unique “Blue” badging.

As part of its efforts to develop environmentally friendly cars, the company introduced the “i10 Blue,” “i10 Blue CNG” and “i30 Blue,” a series of ultra-low fuel usage models, at the 2008 Geneva Motor Show.

Hybrid Electric Vehicles:
Hyundai Motor will begin to mass produce environmentally-friendly electric hybrid vehicles in 2009. A milestone development, this next generation vehicle will become the new value-added growth engine. To meet its 2009 mass production target, Hyundai´s step-by-step plan has been to: First, develop hybrid vehicle technology; second, create a mass production system; third expand model line-up

In accordance with this plan, Hyundai Motor will start by mass producing the compact-sized LPG model, the Elantra LPI (Liquefied Petroleum Injection) hybrid, a car that uses both Liquefied Petroleum Gas and electricity. In 2010, Hyundai Motor plans to introduce mid-sized gasoline/LPG hybrid based on the forthcoming all-new Sonata platform.

Hyundai has been working on hybrid electric vehicle technology since 1994 and has Getz and Accent hybrid vehicles in operation in a pilot testing program with Korean government agencies.

Hyundai began low volume mass production of hybrid electric vehicles in October 2004 when it supplied the government with 50 Getz hybrid cars. Hyundai and Kia supplied the government with 350 hybrid units in 2005, including the Accent. This number increased to 730 units in 2006 and 1,682 units in 2007, totaling about 2,800 units so far.

The full-scale mass production of hybrid cars in 2009 will be a major turning point for Hyundai, which will increase its competitiveness in the environmentally-friendly car sector, an area automakers worldwide are counting on for their strategic survival in the next-generation business sector.

Fuel Cell Electric Vehicle:
Hyundai’s Fuel Cell Electric Vehicle program is gaining momentum with plans to develop a dedicated FCEV platform by 2010 and the start of series production by 2012.

Hyundai plans to expand its demo fleet of FCEV´s to 500 units by 2010, including mid-to-large size SUV´s, then establish a small production system to begin mass production from 2012.

Sports Marketing:
Football is a key marketing tool Hyundai employs to build awareness around the world. The company’s association with the World Cup has proven very helpful in raising brand awareness and attracting new visitors to Hyundai showrooms worldwide.

Hyundai is one of the strongest supporters of football in the world having served as the official sponsor of the 2002 FIFA World Cup Korea / Japan™ and the 2006 FIFA World Cup Germany™ as well as many other FIFA tournaments. The company has extended its strategic sponsorship agreement with FIFA to cover the 2010 and 2014 World Cups.

2007 Global Sales Ranking:

1 Toyota 9,366,000
2 General Motors 8,902,252
3 Volkswagen 6,191,618
4 Ford 5,964,000
5 Hyundai-Kia Automotive Group 3,961,629
6 Honda 3,831,000
7 Nissan 3,675,574
8 PSA/Peugeot-Citroen 3,428,400
9 Chrysler 2,676,268
10 Fiat 2,620,864

(Hyundai: 2,601,673 Kia: 1,359,956)
Source: Automotive News, 2008 Global Market Data Book

Further information about Hyundai Motor Motor Co. and its products are available at http://www.hyundai.com

Worldwide Recognition of Our Cars:
Genesis (launched in January 2008)
- Named “2009 Canadian Car of the Year” on Feb. 11, 2009
- Named “2009 North American Car of the Year” on Jan. 11, 2009
- Genesis beats rivals from Saab, Pontiac, Lexus, Toyota, Acura and Lincoln to be named Consumer Reports’ new top-rated upscale sedan in January 2009
- Ranks in NADA Top 5 Luxury Cars in November 2008
- Chosen as the 2009 “Best New Luxury Car” by the Automobile Journalists Association of Canada (AJAC), the most influential auto award in Canada in October 2008
- The National Highway Traffic Safety Administration (NHTSA) awarded five-star crash test ratings, the highest government rankings under the agency's New Car Assessment Program, to Genesis, for both frontal and side-impact crash tests in August 2008

i10:
- Chosen as the Chilean Car of the Year, beating off rivals such as the Mazda 6 and the Honda Accord in December 2008
- Germany's best-selling compact car for November 2008

i30:
- Awarded with maximum rating of 5 stars at recent crash tests conducted by EuroNCAP in August 2008
- Chosen as “best compact car of the year” at the Autocar Middle East Awards 2008
- Selected by the CESVI (Center for Road Safety and Experimentation) as the safest mid-size imported car in Argentina
- Chosen as Spain’s ‘Car of the Year 2008’ for the first time as an Asian carmaker in February, 2008
- Chosen as Australia’s ‘Car of the year’ for 2007 by CARSGuide in November, 2007

Accent:
- Named the most dependable sub-compact car by J.D. Power and Associates in its 2008 Vehicle Dependability Study (VDS)
- Selected as “the Most Preferred Vehicle of Turkey” in the entry segment by the top authority daily local newspaper, Hurriyet, in January, 2008
- Recognized as one of the top 12 ‘Greenest Vehicle of 2007’ by the American Council for an Energy Efficient Economy (ACEEE) in February, 2007

Elantra:
- Sold over 5 million units worldwide as of July 2008 since the launch of its 1st generation model in 1991. (current model is the 4th generation)
- Named the ‘Best Compact Car for the Money’ by U.S. News & World Report in December 2008
- Kelley Blue Book’s www.kbb.com recognized the 2006 Hyundai Elantra as a “Top 10 Used Back-to-School Car” in September 2008
- Named Consumer Reports’ 2008 Top Picks list for small sedans in April, 2008

Sonata:
- Known as one of best selling cars in Korea since its debut in 1988
- Motor Trend magazine named the new Sonata as its number two pick among mid-sized family sedans sold in the U.S. in August 2008
- Earned “Interior of the Year” award in the “Best Redesign” category of Ward’s Auto World magazine’s annual Automotive Interior of the Year Awards in June, 2008
- Recognized on “Greener Choices 2008” list of ACEEE in February, 2008
Grandeur(Azera) (launched in May 2005)
- Received ‘Best-In-Class 2007 Total Value Award’ from Strategic Vision in November, 2007
- Named ‘A Consumer Digest Best Buy’ in Consumers Digest magazine in December, 2006

Tucson:
- Kelley Blue Book’s www.kbb.com recognized the 2008 Hyundai Tucson as a “Top 10 New Back-to-School Car” in September 2008
- Picked as ‘Best Bet’ in Jack Gillis’ The Car Book 2008. (buying guide book for U.S consumers)
- Named ‘Most Ideal Compact Crossover SUV’ in AutoPacific's second annual Ideal Vehicle Awards (IVA) in September, 2007
Santa Fe (launched in November 2006)
- Selected as the "BEST SMALL SUV" in Strategic Vision's 2008 Total Quality Study (TQS) for two years in a row
- Named Consumer Reports’ 2008 Top Picks list for Midsized SUV in April, 2008
- Earned IIHS’s ‘Top Safety Pick Awards’ in November, 2007

Veracruz:
- Won “best large family SUV of the year” at the Autocar Middle East Awards 2008
- Earned “Best New Family Vehicle” honors from Kelly Blue Book in February, 2008
- Recognized as the “Top Larger Crossover SUV” in Autopacific Vehicle Satisfaction Awards (VSA) in May, 2008