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Hyundai-Kia targets top five with new Euro R&D centre

October 2003

 

Hyundai-Kia opened the doors to its new headquarters and first European R&D centre in Russelsheim, Germany in October 2003 with the recently appointed CEO, Park Hwang-Ho boldly announcing: “This opening will help us achieve our goal of becoming the number five carmaker in the world."

Hyundai-Kia’s new European headquarters and first European R&D facility
Hyundai-Kia European HQ

The headquarters, which bring together design and engineering centres under the same roof as the sales and marketing division, cost over €50 million ($56 million) to build, with 25,000 square metres of workspace being housed in a state-of-the-art building.

A clearly ecstatic Hwang-Ho, who was only elected as CEO in late August, added: “This opening puts us in a strong position to expand and become a trusted company that builds top quality motors.” According to Hwang-Ho, the specific role of the R&D centre will be to ensure that all future Hyundai and Kia models are fitted to the exacting demands of the European customer. “We are thinking globally, but acting locally,” commented the new CEO.

The engineering centre, which in itself represents an initial investment of €12.6 million ($14.2 million) and offers a working area of 8,472 square metres, is fully equipped to evaluate new and existing powertrains as well as actively engage in future development.

“Our aims are straightforward, but not simple,” explained Nam Yong Kim, senior vice president and head of the new facility. “We want to develop the best powertrain and chassis. We want to combine new technology and advanced technology from European suppliers and create a major European resource, in fact a European customised product.”

According to Kim, the Hyundai-Kia group is looking “to build cars for all market segments,” with the new R&D centre having three main objections. He explained: “Firstly, we want to meet Euro VI emissions, we want to improve the all-road driveablity of the vehicles and finally, for us, the future is important, so we need to build more and come up with new concepts and designs.”

Kim added: “By being here, we’re in the right place to develop relationships with the players in the industry, and already we have collaborated with the likes of ZF, Porsche and Ricardo, to just name a few.”

The powertrain section of Hyundai-Kia’s new R&D facility comprises of six dynamometers that are constantly engaged in benchmarking, research and further diesel engine development. There is also a chassis dynamometer that deals with engine-vehicle correlation, calibration and benchmarking, as well as testing the quality of European supplied technology and components. A test rig has also been added, and is will be used in the development of injection and port systems.

Completing the R&D centre of Hyundai-Kia’s new European headquarters is the European design centre that occupies 5,780 square metres, and includes a modelling shop, paint shop, hard modelling room, machine room and two modelling workshops.

Speaking at the opening of the design centre, Hyundai automotive group chairman Mong-Koo Chung said: “We know that in Europe – and particularly Germany – passion or emotion is one of the most important criteria involved in the purchase of a car. A car must awake emotions if it’s to succeed, and so design plays a primary and crucial role here.”

As well as incorporating the latest 3D virtual reality simulation hardware and software that will help ensure designers can optimise the future styling of a vehicle, the design centre – by being located directly next to the engineering centre – will help reduce the number of platforms from 29 to seven by 2009.

No comment was made, however, on recent and strong speculation that DaimlerChrysler is looking to increase its 10.5 per cent stake in Hyundai to 15.5 per cent, a move that would result in DaimlerChrysler becoming the largest shareholder in the South Korean carmaker.