Hyundai goes all-out to improve quality
Hyundai Motor is gearing up to improve its product quality after the government imposed a recall order on around 240,000 of its cars.
The Ministry of Land, Infrastructure and Transport ordered a recall of 12 Hyundai Motor vehicle models last week, including the Genesis sedan and Kia Sorento sport utility vehicle. It marked the first time for the carmaker to face such a government-initiated order.
A Hyundai official said Monday that the carmaker would take the order as an opportunity to improve the quality of its products across the board.
As a part of such efforts, its Strategic Technology Research Institute (STRI) plans to expand its role to preventing possible recalls in the future. Its original mission is to develop next-generation technologies for sustainable growth.
“We have upgraded the status of the institute to an independent research center so that it will be able to direct not only our research projects but also our business operations,” the official said.
Observers point out such efforts will enable the carmaker to reduce recalls in the future.
The institute is located inside the Korea Central Research Institute (KCRI) in Uiwang, Gyeonggi Province. The KCRI is one of Hyundai Motor Group’s R&D centers where nearly 1,500 researchers study eco-friendly technologies.
Comprised of two divisions — research engineering and strategic development — the STRI is now putting its utmost efforts into developing disruptive technologies. It also actively seeks innovation opportunities with top universities, research organizations and technology firms around the world.
“Companies are now facing new challenges from the emerging disruptive innovations in technology in customer satisfaction,” the official said.
“Hyundai Motor is also set to offer the highest value to our customers with innovative products and services to satisfy an increasingly complex automotive environment.”
After the ministry ordered the recall last week, Hyundai Motor immediately said it would comply with the government’s decision.
“Our company explained that five cases do not pose safety risks. However, we have arrived at the conclusion that a recall is reasonable for consumer protection,” it said in a press release.
“We humbly accept the ruling. We will make all efforts to come up with an action plan for customers as soon as possible.”
Hyundai Motor is required to submit its recall plan within 25 days with the ministry as well as informing affected car owners within 30 days of its plan. Based on the released timetable, the recall for the affected cars is expected to take place next month.
Hyundai hopes to rebound in China
Another setback for Hyundai Motor and its sister brand Kia Motors is the slump in China after Korea’s decision to deploy a U.S. anti-missile shield, which China regards as a tool to spy on it.
The two companies’ sales in the world’s largest automotive market decreased substantially this year.
But they expect sales to rebound after the inauguration of President Moon Jae-in who is trying to mend ties with Beijing. He has vowed to discuss the thorny issue with China.
In his inaugural address last week, Moon pledged to negotiate earnestly with China to solve the sour Sino-Korean relationship. He also asked his Chinese counterpart Xi Jinping in a 40-minute phone conversation Thursday to find ways to deal with the issue.
“Hopes are high that the new administration will find ways to iron out the differences with Beijing. Then our companies would be able to bounce back. In particular, Hyundai Motor would be happy,” a Seoul analyst said.