Technology Innovation Key to Sharpening Competitiveness
Hyundai Motor recently won kudos for its automobile quality from U.S. motorists, shaking off its image of the maker of cheap, entry-level cars. The South Korean carmaker has topped a survey of U.S. car owners for ``best in auto quality’’ for the first time since it began exporting its vehicles to America in 1986. This means that U.S. drivers have begun to recognize the improved competitiveness of Hyundai cars in terms of quality.
The automaker took three top spots in the survey released Monday by the San Diego-based research firm Strategic Vision, beating out the world’s top automakers. Hyundai’s Azera, Entourage and Santa Fe were, respectively, selected as the leaders in the large car, minivan and small sport utility vehicle (SUV) categories. The firm’s affiliate Kia Motors also led in two categories. The Kia Sedona, known as Grand Carnival in South Korea, was tied for best minivan with Hyundai’s Entourage and the Quest by Nissan Motor. Kia’s Sorento took the top place in medium-sized SUVs.
However, according to the J.D. Power and Associates 2007 Initial Quality Study released Wednesday, Hyundai took 12th place in the overall ranking of brands, down from last year’s third place. But, Kia moved 12 notches up, also to 12th place. It is a somewhat disappointing result for Hyundai. The company will have to make more efforts to consolidate its reputation as a quality car manufacturer.
No doubt Hyundai and Kia have made great strides in raising the quality of their vehicles by investing more in research and development. The survey results are encouraging news to Korean companies since Hyundai shows its ``can do’’ spirit. Back in 1968, most industrial experts and businessmen scoffed at Hyundai’s idea of starting car-making operations. However, the company has emerged as one of the world’s top 10 automakers.
Strategic Vision’s chief executive Darrel Edwards said, ``Even though Hyundai is often overlooked by the U.S. customer, Hyundai’s success in 2007 is not surprising given its current products and leadership that is looking to the near and distant future with designs from styling to power trains.’’ Although Hyundai had disappointing results in the J.D. Power survey, it can regain its place by further improving the quality of its cars.
Hyundai ought to bear in mind that quality competitiveness is a prerequisite to its goal of joining the ranks of the world’s top five carmakers. The company still has many problems to solve in order to realize its goal. Hyundai will have to increase its investment in developing new technology to compete with the top global giants. It also must go all-out to improve productivity as well as establish global production and marketing networks.