Moving the World with Quality - Hyundai

Moving the World with Quality

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TRUCK BUS S u m m e r

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Meet the Hyundai Family : President & CEO of Hyundai Motor Company Special : Introducing EXPO 2012 YEOSU KOREA Cover Story : Mass Production in Indonesia & Malaysia Launching Ceremony Global News : Special Purpose Vehicles

Hyundai Motor Company

Fax : (82-2) 3464-3513 Phone : (82-2) 3464-3192 Website : http://www.hyundai-motor.com

Register Date : March. 10, 2006 Registered No. : 2007-B Publisher : Mong - Koo Chung

N e w s l e t t e r

Designed : Communications OCTO Inc. Published : May. 31, 2007 Commercial Vehicle Export AdministrationTeam

We welcome your suggestions & your comments. If you have great stories which are related to Hyundai, Please feel free to e-mail Mr. W.H Kim : [email protected]

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Exhibition Facilities Thematic Pavilion

Expo Town

National & International Organization Pavilion

Dear Colleagues

Sub-Theme Pavilion

and Friends!

Expo Hall Expo Town Commercial Facilities

First of all, I would like to express my deepest appreciation for all of your effort and devotion to sales of Hyundai commercial vehicles. And I am very pleased to announce that effective from April, our bus manufacturing line at the Jeonju plant has added a second shift, something we have been pursuing since last year. And it is expected that that the truck line will also add a second shift in the latter half of this year. If all goes according to plan, the annual production capacity of the Commercial Vehicle Division is set to increase from the current 70,000 to 90,000 units next year. By 2010, the Jeonju plant’s annual production capacity should grow to 110,000 units by 2010 and reach 130,000 units by 2012. Our current overseas sales forecast envisions exports of 80,000 CBU units and 70,000 CKD units by 2012. Bolstered by our capacity expansion and reputation for peerless quality, Hyundai is poised to join the ranks of the world’s top five commercial vehicle makers. To prepare for our takeoff as a global commercial vehicle maker, Hyundai’s export system has been recently expanded. In addition, structure of the special vehicle department has been overhauled in order to respond more quickly to customer’s requests and raise customer satisfaction levels. In order to achieve our goals, however, our first priority is the enhancement of our overseas distributorship network. A specialized system for commercial vehicles (dedicated to 3S: showroom, service, spare parts) urgently needs to be established. For this reason, we are currently undertaking a thorough evaluation of our overseas showroom, service and spare parts. After analyzing the findings from our survey, we will open the door to our Sales and Service Academies, specialized courses which aim to upgrade the professionalism of our commercial vehicle sales and service representatives. In these ways, we will be able to provide our customers with the highest level of service at all phases of purchase and ownership experience. Furthermore, in keeping with its social responsibilities, the Hyundai-Kia Automotive Group is extending full support for the bid by the southern Korean port city of Yeosu to host the 2012 World Expo, one of the premier international events alongside the World Cup and Olympics. In his capacity as senior adviser for the 2012 Yeosu Expo Bidding Committee, Chairman and CEO Chung Mong-Koo is spearheading the national campaign to bring this prestigious event to Korea and I am delighted to give him my full support. A successful bid by Yeosu would provide a golden opportunity to promote Korean-made products and brands, boost regional economical development and raise Korea’s status in the world. Naturally, Yeosu’s success would have a far and wide ripple effect, lifting the Hyundai brand profile in your market and helping you increase your local sales so I am looking forward to your positive support of our efforts. In closing, I once again extend my sincere appreciation for your efforts to expand your commercial vehicle business and I wish you success in the year ahead. Han Young (Harry) Choi President & CEO Hyundai Motor Company

02 _ HYUNDAI Newsletter

Aquarium

Air view of the expected place to host 2012 Yeosu World EXPO

Introducing

EXPO 2012 YEOSU KOREA 1. About Exposition

EXPO in Yeosu under the theme of the ocean and has since worked to

EXPO is one of the three major world festivals along with the Olympics and the World Cup. It aims to educate the world by comparing and presenting various achievements of humankind and prospects for the future according to certain themes.

secure the bid for the 2010 International Registered Expo.

Also, this massive economic and cultural event contributes to human prosperity by suggesting solutions and visions for the world to overcome challenges facing it.

2. The progress of Expo 2012 YEOSU 1) Hosting- Outline Title

International Exposition Yeosu Korea 2012 (BIE recognized exposition)

Location

Shinhang district, Yeosu, Republic of Korea

Theme

The Living Ocean and Coast

Period

12 May 2012 ~ 12 Aug 2012 (for 3months)

2) Bidding- Background The earth s ocean and coastline is a source of abundant natural resources and food, and also controls the global climate through the circulation of air and geothermal energy. In this light, we believe that preservation of a living ocean and coast is a task that should be pursued by all humanity. Recognizing the valuable opportunity offered by the World EXPO to discuss and reaffirm joint human efforts towards the preservation of the ocean and coast, the Korean government decided in 1996 to host the

Now the Korean government is once again preparing to host the 2012 International Recognized Expo based on its strong resolve, past successes in hosting international events such as the FIFA World Cup and the Olympics, the strong aspiration of the residents of the host city Yeosu and tireless and faithful preparation. We hope to create the 2012 Yeosu World EXPO into a venue where civil society and key policy makers of the world gain a clear understanding of the importance and function of the ocean and coast as well as the repercussions of its destruction, and contemplate measures to realize an ocean and coast that is truly teeming with life.

3. Support Status for Bidding EXPO of Hyundai-Kia Automotive Group Hyundai-Kia Automotive Group is positively supporting to bid the 2012 Yeosu EXPO by building TFT to assist bidding activities in the group. President for CV Division, Choi Han-Young is responsible for all-inclusive affairs of the Bidding Assistance Organization, and Vice President of Kia Motors, Kim Yong-Hwan is taking the chief position of TFT. Under the TFT, the three teams of Corporate Planning Team, External Cooperation Team and Paris Office are in operation. Additionally, positive bidding activities are being pursued abroad as well utilizing the overseas sales organizations of Hyundai-Kia Automotive Group.

HYUNDAI Newsletter _ 03

C o v e r

S t o r y

In addition, the eco-friendly Aero CNG bus will be made by Korindo.

overhead capital, the outlook for the automobile industry in

It meets Indonesian standards for fuel efficiency, performances and

Indonesia is bright.

durability, and will be the most appropriate model for the “Jakarta Bus Way Project.”

In 2007, Korindo Heavy Industry expects to sell 2,000 units of Mighty and 250 large buses including the Aero CNG Bus.

In the early 2007, the Indonesian Government prohibited import of used cars for the purpose of supporting the development of the local automotive industry. Judging by the expansion of social

Malaysia Launching Ceremony Hyundai-Sime Darby launched HD5000 truck. Hyundai-Sime Darby

million in new facilities at sister company Inokom Corp Sdn Bhd’s

Motors Sdn Bhd, the sole distributor of Hyundai Motor Company

assembly plant in Kulim, the introduction of HD5000 also paves the

and Inokom vehicles in Malaysia, launched its new HD5000 Truck,

way for a stronger relationship between the Sime Darby Group and

Malaysian version of MIGHTY on 28th, March 2007. This marked its

Hyundai Motor Company.

venture into the middle range commercial vehicle market of Malaysia.

HD5000 comes with intercooled turbo charged diesel engine that ensures maximum performance without high fuel consumption and

Mass Production in Indonesia On March 30, 2007, Hyundai and Korindo Group held a ceremony to

Approximately 400,000 tons are manufactured by the Group

celebrate the start of mass production for the Mighty truck and Aero

annually, twice Indonesia’s domestic demand. About 70 percent of

CNG bus in Banten Province, Indonesia.

production is exported, contributing to the growth of Indonesia.

With an investment of US$ 25 million, Korindo Group established its

In 1990, Korindo Group entered into the container manufacturing

own plant for trucks and buses in Banten, near the capital Jakarta.

industry. Even though other competitors had been weeded out from

By this, the group became Hyundai’s newest assembly partner. The

the market, the group is operating a near-capacity with annual

Group is active in timber, plywood, paper production and container

output reaching 60,000TEU - the biggest in Southeast Asia.

The company is targeting the truck at commercial vehicle operators

meets the so-called green engine requirement of the Euro II

in the 5 ton segment. With an additional investment of US$ 2.9

standards.

manufacturing. Korindo Group is new to the automobile industry. While firmly Established in 1969, the Korindo Group has weathered all

laying a firm foundation in Indonesia, the Group has higher

challenges and difficulties over the past 40 years and has emerged

aspirations of becoming a global player in the commercial vehicle

as one of Indonesia’s leading conglomerates.

industry.

Korindo Group is founded on successful development of forest

Mighty Truck, manufactured by Korindo Heavy Industry, is the best-

resources and plywood manufacturing. The Group built the

seller in its segment in Korea and is exported to 90 countries. It is

country’s first newsprint factory in 1984. At present, it is the biggest

expected that it will contribute to development of the automobile

in Southeast Asia.

industry in Indonesia.



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Industrial Engine

Special Purpose Vehicles

Hyundai’s Engine Business Team develops engines for application in construction equipment such as excavators, loaders and farm machines for spraying agricultural chemicals. It also offers marine engines for yachts and smaller vessels. The Engine Business Team offers engines meeting customers’ various applications with the help of R&D Center, which modifies genuine automotive engines, unique parts and does engine endurance test. The D4DD Common Rail Engine (3.9 ) and Beta LPG Engine (2.0 ) were recently developed to satisfy stringent North American emission control regulations. These engines are installed on forklift trucks that are on sale in Europe and the United States. Especially, D4DD Engine is the first common rail engine adopted for the forklift truck.

Crane Cargo (Knuckle Type)

Dry Van (Power Gate)

Dump Truck

New Made-to-Order System Ensures Complete Customer Satisfaction

Most important of all is that the models produced at this plant are the most competitive in the world thanks to the standardized manufacturing processes and innovative cost reduction measures.

Using a Hyundai bare chassis as the foundation for its business, the Special Vehicle Team is developing and manufacturing vehicles to meet a wide variety of customer needs and adapt new technologies.

Regardless of vehicle type, Hyundai is able to comply with individual customer requests as it aims at full customer satisfaction.

Hyundai’s new special purpose vehicle plant is unique in the world of commercial vehicles in that all of the special purpose vehicles built on the line are built on a made-to-order basis. The new Hyundai special purpose vehicle line can build everything from panel van trucks, to garbage trucks, tank lorries and crane trucks. Furthermore, the Just In Time production system combines the virtues of mass production (fast and efficient) with a high degree of customization.

The plant is capable of manufacturing 118 different kinds of vehicles including cargo van trucks (42 variants), garbage trucks (32), construction truck (6) and specialized transportation vehicles (38) such as tank lorries. Hyundai engineers are currently working on the development of other 25 different kinds of special purpose vehicles.

In addition, various CNG / Diesel / Gasoline engines are being manufactured for application in excavators, sweepers, aerial-lifts, wood chippers, and Gas Driven Engine Heat Pump, generators and bus cooler, covering the broad span of industrial equipment.

CNG Truck

on the residential streets with slow speed along with cleaners who are frequently riding on the backside of vehicles.

As a global enterprise, Hyundai Motor Company, is developing and supplying various CNG (Compressed Natural Gas) Vehicles in order to positively fulfill its responsibility for environmental conservation - a rising worldwide issue. Hyundai CNG Environmental Vehicle has procured a certification presented by the US certification standard, which is the world standard in terms of safety of gas container and safety valve. Furthermore, it is being approved as a representative eco-friendly vehicle, owing to scarce emission of noxious gas or substance. In particular, CNG Environmental Vehicle offers best working conditions under inferior circumstances of Environmental Vehicle that is running

4WD Multi-Purpose Truck

Accordingly, in Korea, positive supply policy is being carried out to expand the representative eco-friendly vehicle, the CNG Environmental Vehicle, which is possible to be promptly applied to real life by supporting special purchasing subsidy by each size of vehicle for each local autonomous entity. At present, as for Special Purpose Vehicle, CNG are being applied to only Environmental Vehicle. However, through continuous expansion of application, HMC will help keep our surroundings pleasant while positively contributing to environmental preservation.

4WD Snowplow Truck CNG Clean Pack

Recently, Hyundai’s all-new 4WD Multi-Purpose truck made its debut at the 2007 Seoul Motor Show. Drawing a positive reaction, Hyundai plans to export 4WD multi-purpose trucks worldwide. With its expanded capabilities and high specifications, the 4WD MultiPurpose truck will meet the unique requirements of snow removal


CNG Garbage Dump

operators and the forestry industry. This is only one example of the wide ranging efforts by the Special Vehicle Team to expand their business through the development of different tailored geographic and operating conditions and to the special requirements of individual customers.

CNG Arm Roll

CNG Roll Pack

CNG Food Garbage Truck


G l o b a l

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Universe Launch The launching ceremony of Universe with the slogan, ‘Luxury beyond Imagination’ was held at SAFEX Exhibition Hall in Algiers, Algeria on May 14th and Laylaty Hall in Jeddah, Saudi Arabia on May 16th. For the event held at SAFEX Exhibition Hall, Algeria’s largest, about 450 people participated including prominent government figures, members of the local media and major fleet customers. Following congratulatory addresses, the event progressed smoothly with a product introduction and an unveiling ceremony.

Participants voiced strong satisfaction with the new product praising the Universe’s expanded capacity compared to its predecessor, the Aero, its sophisticated exterior design and improved convenience. Expectations are high for the new model. Thanks to the new model and improved awareness of the Hyundai brand, all parties are looking forward to a surge in sales. The ceremony hosted in Jeddah, Saudi Arabia was an equal success. The proceedings began with a ritual recitation of the Koran followed by congratulatory speeches, a laser show, a product introduction and entertainment. Some 300 participants attended, including high-ranking government officials, members of the press and fleet customers. As a result of the meeting, a clearer picture emerged of the new trends in the local intercity bus market including the special demands of transportation companies who are charged with moving millions of Haji pilgrims.

show with on-the-spot visits to distributorships, showrooms and fleet companies along with a service clinic. An advertising campaign was launched simultaneously with the launch.

With its remarkable improvements, Universe is expected to appeal to customers in Algeria, Sudan and Vietnam. Additional launching events will be held in Russia, Syria and other nations in the future.

Line up Suspension

Model name

Meaning of Model Name


over all heigth

Englne(ps/kg•m) D6AC

Unification of the bus in the world

UNIVERSE

Express

Noble

12m

3.5m

Emblem

340/140 340/148

D6CB

380/148

[powertec] 410/173

Air suspension

D6AB-d 300/110 290/110

Luxury

UNIVERSE

11.8m

D6CB

380/110

[powertec]

Space

3.3m Classic

Unlike previous launching ceremonies, this event encompassed a road

over all length

Leaf suspension

11.6m

D6AV

235/78 220/75 D6AB-d 300/110 290/110 D6CB 380/148 [powertec]


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2007 Hyundai Truck & Bus

2007 Seoul Motor Show Newest Models and Technologies

Latin American & Caribbean Distributors Convention in Aruba

Over the three days from April 17th to 19th, the CV Division hosted the 2007 Hyundai Truck & Bus Latin American & Caribbean Distributors Convention on the Caribbean island of Aruba.

Eco-Friendly Fuel Cell Bus Multi-Purpose Truck Low Emissions Q- CNG and PowerTec Diesel Engines Hyundai Motor Co.'s Commercial Vehicle Division put on an impressive

they satisfy not only domestic emissions and safety regulations, but also

visited the Jeonju plant, the largest of its kind in the world. After touring the

display of its design and engineering capabilities at the 2007 Seoul Motor

demonstrate great strides in performance, safety and convenience,” added

production line and enjoying a short ride on the new Universe express bus,

Show under the theme of “Confidence.” The exhibit included Hyundai’s

H.Y. Choi.

they went home with a deeper understanding of Hyundai’s fast-growing capabilities in the bus and truck business.

newest eco-friendly hydrogen fuel cell bus and six other models, as well as examples of its newest engines and safety technologies. The display

In addition to Hyundai’s eco-friendly hydrogen fuel cell bus which made its

covered 1,000 square meters at KINTEX hall.

debut at the FIFA 2006 Germany World Cup, Hyundai displayed a new multi-purpose work truck, the newly launched TRAGO 8X4 dump, TRAGO

In conjunction with the event, HMC CV Division invited over 50 truck and

6x2 tractor and UNIVERSE express coach.

bus distributors from 15 countries to participate in a marketing seminar. "Hyundai is a growing force in the truck and bus industry. And our display at

Also on display were examples of Hyundai’s latest technologies including

2007 Seoul Motor Show strongly communicates the competitiveness of our

the independently developed PowerTec engine which delivers the most

technology to Hyundai partners and customers around the world," said H.Y.

powerful performance in its class. Eco-friendly Q-CNG engine, steel piston

Choi, President of the CV Division.

modules of TRAGO and UNIVERSE bare chassis were also displayed.

“Step by step, we are winning recognition as a technology-driven company

As part of the event, Hyundai invited dealer representatives, fleet customers

and this is an occasion for Hyundai to showcase its latest technologies. The

and journalists from Asia Pacific, Asia and Middle East and Eastern Europe

vehicles on display were built at our Jeonju commercial vehicle plant and

—about 50 in all. In addition to attending the Seoul Motor Show, they


The event attracted 91 attendees including Executive Vice President Suh Yeong-Jun, HMC CV Export Division, and sales and service representatives from 22 distributors in the region. The session kicked off with an introduction to Hyundai’s vision and sales strategy which was followed by a preview of upcoming models such as the Universe express coach and an update on new service strategies. Following the presentations, participants joined in afternoon sessions devoted to service, sales and marketing where they were able to engage in an exchange of information and opinions. The event provided participants with a better understanding of Hyundai’s new products and technology especially the Euro 3 Heavy Duty Truck which has been in mass production since last December, and Universe express coach which was launched earlier this year. Participants applauded enthusiastically upon hearing the announcement that the bus production line would add a second shift and that truck output would be increased.


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Efficient Operation of Commercial Vehicle

Introduction of overseas model fleet

From this issue of Hyundai Truck & Bus Newsletter, preventive maintenance, economic driving, safe driving, and introduction of fleet company with superior vehicle management will be covered as a series in order to provide useful information of efficient vehicle operation to customers of HMC commercial vehicles.

1. Fleet

Introduction of Preventive Maintenance

As the biggest transportation company in China, Kee Kwan Motor Road Co. Ltd. operates a total 232 vehicles, comprised of 163 buses for passenger transport, 26 sightseeing buses, and 43 distribution trucks.

Preventive maintenance of Kumho Express, Korea’s no.1 fleet company, is covered in this issue as an actual example of its effect to successful output of fleet companies. The meaning of preventive maintenance is to select and manage vehicle maintenance items those are needed to be managed periodically. The items are selected from scientifically analyzed database of vehicle repair and part replacement, and then the items are categorized into repair, replacement and inspection. In case of Kumho Express, they have started preventive maintenance with 7 items at first, but they have increased the number of items to 46 in 2002, and since 2005 they have widened the coverage of preventive maintenance by increasing the numbers of items to 65. The following graphs show the effect of preventive maintenance on fleet company’s performances.

Times 3.0 2.0 1.0 0

Running Cost (Parts and lubricants cost) Running cost per 1,000km has decreased by 30% in 2007 compare to 2003. The key factor for such improvement is exact purchase of and efficient stock control of spare parts. And also by replacing parts with potential of breakdown in advance, extra cost which can be caused by part breakdown could be reduced. 30

Rate of on-road breakdown is calculated by counting the number of breakdowns occurred on road per certain distance of the vehicle operation. On-road breakdown per 1,000,000km in 2003 was 2.79 but the rate has decreased stiffly and reached to 0.46 in 2007.

20 10 0

Overseas Commercial Vehicle Service Team will be continuously providing detailed information of preventive maintenance to distributors and customers by introducing successful examples of major fleet companies. Introduction of Kumho Express Kumho Express, founded in October 1948, is the biggest express bus transport company in Korea and they have 600 HMC buses (total of 1104 buses) in operation. The size of their workshop is 71,400 m2 and equipped with the latest model of facilities and equipments such as test bench for injection pump, electrically controlled engine tester, paint booth, etc. Additionally, their distinguished and continuous training program is the key to maintaining


Among 150 large buses, Hyundai accounts for more than half of the entire 98 units, which is more than four times the number of MAN or BENZ units. Additionally, low-cost Chinese-made buses are to be replaced by the Hyundai Universe express coach. In addition, negotiations are under way to replace 23 Chinese-made heavy duty trucks with Hyundai models.

2. Passenger Transport Status

$

Rate of on-road breakdown

Kee Kwan Motor Road Co., Ltd in China

172 excellent technical engineers.

SMT(Safety Management Team) Kumho Express values safety in the first place. Drivers and technical engineers organize Safety Management Team and they participate in it voluntarily. All the buses are equipped with tachograph, and driving report and operation sheet are submitted to SMT daily in order to check whether the regulations for safe driving have been followed correctly. Accidents are prevented by finding out and educating potential dangers which could occur during vehicle and workshop operation, and it resulted in decrease of operating costs.

In 2006, Kee Kwan Motor Road transported nearly 170 million passengers. This figure accounts for 40 percent of the total passengers transported in Zhuhai City. Some 25 bus lines are connecting all major cites in Guangdong province.

3. Purchasing Motive for Hyundai Bus Kee Kwan Motor Road has been purchasing Hyundai buses for reasons of convenience, capacity, fuel efficiency, quality and service. Also noteworthy is that Hyundai buses offer superior capacity compared with European or Chinese products including lower service costs than European products. Another point of merit is the quick and reliable supply of Hyundai spare parts and service because Kee Kwan has authorized workshop in the region. Backed by this excellent network for spares and service, Hyundai vehicles can operate under optimal conditions. Hyundai’s transmissions and axles are on par with European products and in terms of fuel efficiency, Hyundai buses and trucks match the level of BENZ and are superior to MAN. Attention to the comfort of the paying customer also counts. While competitors operate their buses with a 2 x 2 seating configuration, Hyundai goes all-out for comfort by offering 2 x 1 seating. With more and more Chinese travelers willing to pay a premium price for comfortable travel, Hyundai is optimistic that its comfort-first approach to the market will be continuing to accelerate its sales growth in China.

4. Management Strategy Kee Kwan Motor Road is not aiming at growth in quantitative terms but more importantly, in qualitative terms as it strives to become China’s leading transportation company. By continuous development of new bus lines, which are connecting small towns, the company will attract more passengers. Due to the increase of cross-border exchanges between China and Macao, the company will make efforts to raise passenger carrying capacity as well as meet the growing needs of the distribution sector.

Representative Address Number of Employees Main Businesses

Mr. Li Ren Shuang, Chairman

Year of Establishment

Chairman of Kee Kwan & General manager, Mr. Mo, Shin-Eui of HMC Gwangzhou office (right)

1927

Main Office

Rus Das Lorchas Ponte No, 12, Macau

Place of Business

6F, Kee Kwan Hotel, Qiangsheng Road, Gongbei, Zhuhai, Guangdong Sheng, China

850

Sales Amount (2006)

170 million RMB (220 million USD)

Passenger Transportation, Distribution, Resort Hotel, Local Bus + Rent Car, Real Estate, Trading


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F a m i l y

Hyundai Colombia Automotriz in Colombia Clear Strategic Vision Puts Hyundai into Fast Lane in Colombia

1. Best Distributor of 2006

Negative Impact Scenario

3. Main Success Fators of 2006

4. Key Strategy for 2007

• Key success factors include a dealer network dedicated to buses and

During the second half of 2006, another round of meetings were con-

During the recent Latin American and

• Hyundai dealers network without motivation to sale C/V

Caribbean Commercial Vehicles Distributors

• Competitors with more experience and support

trucks’ availability of financing and adequate inventory levels. Other fac-

ducted to develop a strategic focus for the year ahead. Five key success

• Government resolutions limiting passengers public transport capacity

tors include improved facilities and availability of skilled labor pool.

factors were defined. Critical elements included the development of a

Convention held in Aruba, Hyundai Colombia Automotriz was recognized as the Best Distributor of 2006 for its contributions to Hyundai’s success in Colombia.

Mr. Carlos Mattos, President of HCA

• Competitors’ dealer networks grow in force

ment analysis and clearly outlined product strategy goals.

• Competition upgrades sales teams • Competition offers superior facilities and service network

The five key success factors included five dedicated diesel dealers (HD

showed a better understanding of products, improved their negotiation

65 – HD 1000), fifteen dealers (HD 65/72), product lineup strategy, training program and HMC support.

ers also proved critical in paving the way to success. Lastly, unwavering

During the second half of 2005 the HCA Management Team conducted

• HCA C/V oriented by a strategic focus

research and analyze the Colombian bus and truck market.

and with the support of HMC, HCA will be selling 1,205 units this year.

of a transport association sales program. Strategic alliances with suppli-

Positive Impact Scenario • HD 65/72 higher sales than 2004, motivated several Hyundai dealers

ance companies, competitors, transport associations in order to

more competitive dealer network and more highly trained sales force

• Training program enhancements also played a contributing role as staff skills and knowledge of the customer. • There was also more emphasis on fleets customers and the introduction

Internal Analysis

2. Strategic Focus for 2006 several meetings with customers, body builders, financing and insur-

• Other factors include an improved product lineup based on careful seg-

support form the HMC ensured 2006 was the best year ever.

• Prices adjusted to reflect competitive trends

As a result of the implementation of the strategic focus, Hyundai’s com-

• Expanded product line up

mercial vehicle sales increased significantly. The goal for 2007 is 1,205

• Commercial strategy by product/segment

units.

• Marketing and advertising support The survey was conducted in reaction to market developments in 2005 and to prepare for future potential issues including internal HCA organi-

Remarkable Sales Increase

Negative Impact Scenario

1400

zation and external issues such as the competition, government legisla-

• HCA organization more focused on passenger cars

tion, economic trends, customer needs, HMC support and dealer

• Lack of technical service

1200

network development. The results were analyzed and applied to defin-

• Lack of inventory

ing the strategy for managing strengths, weaknesses, threats and

1000

• Uncompetitive prices

800

revised on a monthly basis to ensure expected results.

600

Positive Impact Scenario • Customers began recognizing Hyundai HD 65/72 quality and performance • Transport associations interested in Hyundai’s medium and heavy duty trucks • Body builders receptive to develop strategic alliances with Hyundai

Total C / V

WEAKNESSES

OPPORTUNITIES

• Dealer network - Capital work - Facilities - Human resource • Competition longer experience and product recognition

• HD 65/72 quality and performance • Transport Associations interested in Medium heavy and heavy trucks • Strategic Alliances with Body Builders, Financing snd Insurance Companies • HMC support

STRENGTHS

THREATS

• Trucks line up

• Governmente resolutions limiting buses market segment

• Body builders, financiers, insurers work as team with HCA


CV’s New Facilities in National Headquarters

400

HCA is building a mega dealer network dedicated solely to commercial

200

vehicles. It will be equipped with a technical service workshop specializing in diesel engine maintenance and repair. By offering peerless sup-

0 2003

2004

Light Duty (HD 65/72 B/C, County)

• Customers endorse quality and performance of Hyundai buses and trucks • Hyundai bus and truck dealer network expands

Medium Duty Heavy Duty

opportunities for HCA. Key success factors and action plans are being

External Analysis

Light Duty

2005

2006 2003

2004

2005

2006

69

152

276

720

960

54

100

Medium Duty (HD 120) Heavy Duty (HD 170, HD 270 D/M, HD 320/370, HD 1000) Total C/V Sales growth (%)

port in sales and service, HCA will be assured of a leadership position in

2007

69

2007

25

145

152

276

799

1205

220

181

290

150

the Colombian bus and truck market.
