Hyundai Motor Inaugurates Russian Plant

Accompanied by Hyundai Motor Chairman Chung, Russian Prime Minister Vladimir Putin test-drives the Solaris sedan

Prime Minister Vladimir Putin said in his congratulatory speech at the ceremony to dedicate Hyundai Motor’s new car plant in St. Petersburg on Sept. 22 that the Russian government and related agencies will support the Korean automaker to do well in its operation in Russia, praising the Korean ca maker for its unswerving efforts to continue to build its auto plant in Russia depsite the slowdown in the country’s auto sales. He made the speech in St. Petersburg, Russia, where the Korean auto maker built its auto plant able to produce 150,000 sedans annually. Premier Putin test drove the Solaris sedan to be produced by the new auto plant with Chairman Chung Mong-koo on the Korean car maker at his side to explain the characteristics of the new sedan model. Putin held his thumbs up after test-driving the new car, saying “very good” to Chairman Chung.
Hyundai-Kia Automotive Group presented its new corporate identity, “Hyundai Motor Group” in blue, on the occasion of its 10th anniversary on Sept. 1, the group said recently.
The group said the former CI did not present a unifying sign for all affiliates of the group including Hyundai Steel, Hyundai Mobis, Glovis and Hyundai Capital, nor did it indicate that it is the largest automotive group in Korea, by way of explaining the change in CI. The new CI will have “Hyundai” in capital letters above a blue line and “motor group” underneath in small letters, the group said, which will show off the group’s long tradition.
The group was to announce the new CI and its 2020 strategy at a ceremony marking the 10th anniversary on Sept. 1, the date recognized as the anniversary of the founding of the automotive group independent from the Hyundai Group, but canceled it abruptly.
Some 500 affiliate CEOs and executives were to gather at the scheduled ceremony at the group’s headquarters in Yangje-dong, southern Seoul, to announce the new 2020 strategy and commemorate the groups rise to the rank of fifth largest automaker group in the first decade since its launch and to further strive to be the top automaker in the world. The group announced no explanation for the sudden cancellation except that Chairman Chung Mong-koo decided at the last minute to dispense with the event. Officials said the real reason for the move was the government’s policies to support SMEs and the call for large firms to join its drive under the idea of “mutual growth” for both large and small vendor firms.
In a ceremony on Sept. 1 at Grand InterContinental Hotel in downtown Seoul, the group signed an agreement for mutual growth with some 2,700 vendors in the presence of the Commissioner of the Fair Trade Commission. The first group vendors will sign similar agreements with the second and third groups of suppliers dealing with both Hyundai Motor and Kia Motors.
The officials said, however, the group’s new 2020 Vision will still be officially declared in a ceremony at a later date.
Hyundai Motor Co. has been urged to go full steam ahead to sell its sedans such as the Sonata and Avante. Vice Chairman Chung Ui-son called for the “Recovery of Hyundai Motor’s Honor” at a recent meeting of 580 of the company’s key officials including branch managers, heads of shipment centers and service centers around the country on July 23-24. Also present were President Ahn Seung-sok and Vice President Shin Young-dong in charge of domestic sales.
The meeting resolved to keep the company at the top of the domestic auto market with a 40.3 percent share, but lately its sister carmaker Kia Motors hiked its share to 36.8 percent, threatening to over take Hyundai’s lead if the current trend continues, they said.
Vice Chairman Chung said Hyundai Motor sold 321,000 autos in the first half, up 1.9 percent YoY, but market share fell and he felt market conditions for the second half will be bleak due to higher interest rates, competition from foreign car makers and flagging exports.
He urged those at the meeting to do their best not to lose customers by adopting some kind of new measures that can keep their minds on Hyundai cars. He also called for the development of creative new ideas for marketing, hiking productivity, sales and customer service in the second half.
Chung also urged everyone at the meeting to help upgrade the brand value of the Sonata, which, he said, has been lagging recently. “The brand value of the Sonata is appreciated more in the United States, the home market of all cars produced around the world,” Chung said. nw

Prime Minister Vladimir Putin of Russia is seen on the steering wheel of the Solaris sedan with Chairman Chung Mong-koo of Hyundai Motor on his side at the dedication ceremony of the Korean auto company’s new plant in St. Petersburg in Russia on Sept. 22. The Russian premier praised the Korean car maker’s unswerving plan to build the car plant, despite the slowdown in car sales in Russia in recent years.