Hong Seong-an, left, director of the National Research & Development Organization for Hydrogen and Fuel Cell, and Lim Tae-won, Hyundai-Kia Automotive Group’s chief researcher at its cell vehicle team, pose together at the opening ceremony of the Hydrogen Fuel Cell Vehicles Monitoring Division at the Korea Institute of Science and Technology in Seoul, Thursday.
/ Courtesy of Hyundai Motor |
By Kim Hyun-cheol
Staff Reporter
With the environment and clean energy emerging as two of the world's most important issues, the development of low-emission "eco-friendly" vehicles is becoming a priority for manufacturers around the world.
To Hyundai-Kia Automotive Group, 2007 will be looked on as a memorable year, after achieving the long-aspired goal of becoming one of the top five makers in the world. But it is set to confront a whole new competition in alternative fuel cars, spurring the way to consolidating its status as one of the world's leading companies.
The importance of "green vehicles," considered more environmently-friendly than traditional petroleum run vehicles, is becoming an urgent duty for global automobile businesses.
Action for more research and development regarding eco-friendly vehicles is growing worldwide, but South Korea is a bit late in the trend.
While governments of most advanced countries are spending hundreds of millions of dollars in this area, South Korea has spent only 93.1 billion won ($ 93.2 million) over the last four years.
The United States is working on various projects costing a combined 2.7 trillion won to help develop hybrid battery vehicles and build a hydrogen-related infrastructure.
Japan is pushing an 800-billion-won project for low emission vehicles by 2012, while the European Union spending 6.9 trillion won on hydrogen fuel cell development by 2015.
South Korea is planning to earmark a 233-billion-won budget for the development of eco-friendly vehicles by 2010.
Hyundai-Kia, which first developed a hybrid edition of its compact car Click in 2004, is test-offering hybrid brands of other small-sized brands, Verna and Pride, for government use. The maker is also planning to commercially launch next year its Avante hybrid edition, which uses LPG instead of gasoline.
"In the next-generation strategic industry of eco-friendly vehicles, we expect to elevate our competence with the launch," Hyundai-Kia said.
Hydrogen fuel-cell vehicles are another all-out effort for the company in preparation for the exhaustion of fossil fuels, with a plan to commercialize them by 2012. The manufacturer completed a fuel-cell edition of its sport utility vehicle, the Sportage, in 2000, and its advanced edition using an 80-kilowatt fuel cell four years later.
Internal-combustion or hybrid vehicles have limitations on reducing emissions of pollutants and carbon dioxide, so it is seeking to develop hydrogen vehicles, Hyundai-Kia said.
The series of moves are also in preparation for the Korean company to leap to higher ground, following years of just trying to survive the turbulent competition in the business.
Starting at the bottom of the global automobile industry, the nation's biggest automaker snatched a notch in the global "big 5" last year by selling around 4 million vehicles worldwide, according to the 2008 Global Data Book by Automotive News, a renowned U.S. publication.
Even though the outcome was largely due to the split-up of American marquee Chrysler, it is still a notable achievement for Hyundai-Kia, which originally aimed to make the top 5 by 2010.
Success in the American market was pivotal. Its strategy on focusing on mini- and compact-sized vehicles with better fuel efficiency worked great, while other U.S. giants like GM, Ford and Chrysler fell behind the times by adhering to old schemes favoring bigger sedans, which led to falling growth in recent years.
Now it is aiming higher in hopes it can secure a higher spot in the market. The goal of reaching the "global big 3" is regarded feasible in current circumstances.
Hyundai-Kia lags behind Ford, current no. 4, in sales by 2 million vehicles but the American maker has a tough road ahead. Ford is closing down home plants for its flagship brand F Series and also has put Volvo up for sale, following the disposal of luxury marquees Jaguar and Land Rover to India's Tata last month.
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