Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Chung turns Hyundai Motor into EV powerhouse in first 2 years as chairman
Hyundai Motor Group Chairman Chung Euisun walks next to robot dog “Spot” co-developed with Boston Dynamics at the Consumer Electronics Show in Las Vegas in January. Courtesy of Hyundai Motor Group
By Kim Hyun-bin
By Kim Hyun-bin
It's been two years since Hyundai Motor Group Chairman Chung Euisun took the helm of the country's largest automaker on Oct. 14, 2020. For the past two years, he has been focusing on securing future growth engines, including the transition to electric vehicles (EV), starting from the IONIQ 5, as well as other innovative sectors such as robotics, urban air mobility (UAM) and autonomous driving. Through it, Chung is said to have raised the bar of Hyundai Motor Group, according to auto industry analysts.
At the same time, he is facing a range of challenges, such as growing backorders exceeding 1 million vehicles, and the U.S. Inflation Reduction Act (IRA), which is considered to be the biggest challenge that Chairman Chung must overcome, along with the reorganization of the group's governance structure and resolving frequent conflicts between labor and management.
Chung has shown extraordinary leadership abilities to move in Hyundai Motor Group's EV endeavors forward starting with the IONIQ 5 and Kia EV6.
These EV models have implemented the Electric Global Modular Platform, or E-GMP, a dedicated company EV platform.
“In the era of internal combustion engines, we were fast followers, but in the era of electric vehicles, all companies are on the same starting line. We have to become the first movers that lead the market,” Chairman Chung said.
The IONIQ 5 has already been recognized for its quality all over the world, racking up numerous prestigious awards, including “World Car of the Year” and 'World Electric Vehicle of the Year” at the World Car Awards. The Kia EV6 also won the “2022 European Car of the Year” award.
The sales performance of EVs is also increasing. Hyundai Motor Group sold 252,719 units last year, entering the top five in global EV sales. In the first quarter of this year, Hyundai Motor Group sold 76,801 EVs, up 73 percent from the same period last year. Domestic growth showed a 155 percent jump and overseas growth was 52 percent.
When U.S. President Joe Biden visited Korea in May of last year, Chairman Chung unveiled a large-scale investment package. At the time, the company promised to invest $5 billion in the U.S. along with the construction of a plant dedicated to EVs in Georgia, worth $5.5 billion.
However, three months later, the U.S. government passed the IRA, which, starting in January offers a tax credit to U.S. consumers of EVs that undergo final assembly in North America, as well as meet the requirements for the sourcing of critical minerals in EV batteries and the manufacturing and assembly of battery components.
Out of Hyundai Motor Group's projected investment of $10 billion in the U.S., $5.5 billion is slated for an EV vehicle and battery cell factory in the state of Georgia, which is scheduled to begin production in 2025, three years after the IRA tax credit is implemented.
Chairman Chung took two business trips to the U.S. at the end of August and at the end of September, but there were no concrete results or a solution yet.
Labor-management issues that have been putting the brakes on Hyundai Motor Group's momentum constitute another major task that requires improved leadership from Chung to overcome.
In July, Hyundai's labor and management reached an agreement on wages and collective bargaining but at Kia, labor and management have not been able to come to an agreement. Kia's union decided to conduct a partial strike Tuesday, putting the group in the hot seat again.