Hyundai Motor Group’s Chung stresses challenges and change in 2023

Hyundai Motor Group Executive Chairman Euisun Chung [Photo by Kim Ho-young]

Hyundai Motor Group Executive Chairman Euisun Chung doubled down on challenges and change as new standards and outlined new areas of growth for the group during a New Year town hall meeting on Tuesday.

“We will not fear risks and chase after changes,” Chung said at the group’s Namyang R&D Center attended by executives and employees of Hyundai Motor Co. and Kia Corp. “Instead, we will lead the future by being one step ahead and create opportunities during crises.”

In their first face-to-face New Year meeting in three years, Chung and other top leaders met with employees to share their New Year’s messages and deliver strategic direction and vision for 2023.

Chung and other top leaders [Photo by Kim Ho-young]

This year “will be the year we establish ‘trust by taking on challenges and making a new leap through change’ to overcome the difficult business environment and move forward together toward a better future.” Chung told employees.

Chung affirmed that the group is committed to building trust by taking on challenges in diverse areas, including electrification, software and new businesses.

“We were among the top 5 EV sellers globally, demonstrating a successful start to our transition to electrification,” Chung said. “In 2023, we will continue to develop and provide innovative vehicles to solidify our lead position in the global EV market and continue the shift to electrification.”

Major Hyundai Motor Group EV models to be released this year include Kia’s flagship electric SUV, the EV9, and Hyundai’s new performance-focused version of the Ioniq 5.

Chung also emphasized the importance of software. “Company systems, including R&D, must be upgraded to achieve a ‘software-centered transition,’” he said. “This will enable us to secure the capability to produce flawless Software Defined Vehicles (SDV) and take the lead among global competitors.”

The group plans to transform all models into SDVs by 2025.

[Photo by Kim Ho-young]

Chung also specified plans for new business areas, including autonomous driving, future mobility, robotics, energy and new materials to secure future growth engines.

“In autonomous driving technology, we are planning to launch models capable of autonomous driving Level 3 on highways in Korea,” Chung said. “We are also planning to commercialize robotaxis with autonomous driving Level 4 in North America.”

The group also plans to expand to new energy areas such as Small Modular Reactors (SMRs) and foster development of safer, super high-strength steel products as well as smarter logistics solutions.

The town hall meeting is aimed at boosting direct communication between employees and key executives.

[Photo by Kim Ho-young]

Chung also stressed the importance of creating stability through a proactive change. “In order to achieve sustainable growth, we must overcome the status quo and create a corporate culture that is proactive and ever-changing,” he said. “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 outcome.”

Following the town hall meeting, Chung stayed at the Namyang R&D center, spending further time with employees to take selfies and discuss various topics during a lunch break.

Hyundai Motor Group sold about 6.84 million cars in Korea and overseas last year, up by 2.7 percent from the previous year. Domestic sales contracted 2.5 percent to about 1.23 million units, while overseas sales increased 3.9 percent to 5.61 million units. The group raised this year’s sales target by 9.8 percent to about 7.52 million units.