Latest news with #ChungEuisun
Korea Herald
6 days ago
- Automotive
- Korea Herald
Hyundai Motor honorary chairman's vaccine vision comes to life at Korea University
Auto mogul's W10b donation culminates in Chung Mong-Koo Future Medicine Building A philanthropic donation made by Hyundai Motor Group Honorary Chairman Chung Mong-koo to develop vaccines has borne fruit as the auto conglomerate celebrated the grand opening of the Chung Mong-Koo Future Medicine Building at Korea University in Seoul on Monday. Chung donated 10 billion won ($7.3 million) from his personal funds to the Korea University College of Medicine in 2021 during the COVID-19 pandemic to enhance Korea's vaccine development capacity and expand research facilities. The medical school decided to name the new building after the auto mogul in his honor. At the time of the donation, Chung said, 'The donation is my way of helping the people who have supported Hyundai Motor Group. I hope this can help restore health and happiness by overcoming the pandemic.' The Chung Mong-Koo Future Medicine Building, a seven-story facility with 12,213 square meters of floor space, features a vaccine innovation research center, a bio safety center and laboratory, a precision medical center based on gene therapy and digital health and a research and development center for cutting-edge medical technology. It also includes high-priced equipment such as In-vivo Optical Imaging System, or IVIS, imaging-based ultrafast cell analysis equipment and a G3 robotics station. Hyundai Motor said the new facility is expected to become a linchpin in securing the country's vaccine sovereignty as it will be a platform that allows Korea's first private sector-led vaccine development. 'Honorary Chairman Chung Mong-koo believed that the fundamental purpose of a corporation is about ensuring the happiness and well-being of the public and offered support such as fostering medical experts and treating the underprivileged so that everyone could have a healthy life,' said Hyundai Motor Group Executive Chair Chung Euisun, the oldest and only son of Honorary Chairman Chung, during the opening ceremony. 'I hope that the Chung Mong-Koo Future Medicine Building will become a key foothold to secure Korea's vaccine sovereignty and be able to lead the global health crisis.' The former chief of the auto conglomerate established the Hyundai Motor Chung Mong-Koo Foundation in 2007 as he emphasized the importance of corporate social responsibility. The foundation, which was backed up by Chung's personal funds, also donated 6 billion won to the Asan Medical Center to support the growth of medical workers and set up a safe hospital system. The foundation has offered medical expenses for children of households with financial struggles while collaborating with medical institutes to seek those in blind spots who need medical treatment.
Korea Herald
13-06-2025
- Automotive
- Korea Herald
Hyundai Steel to supply 100,000 tons of auto steel sheets to GM Korea
Hyundai Steel, the automotive steel manufacturing subsidiary under Hyundai Motor Group, is set to supply steel sheets to GM Korea as early as September, following the automaker's strategic decision to shift its supply chain away from China. According to reports on Friday, GM Korea recently informed China's Baoshan Iron & Steel that it would be switching its steel sheet supplier. The company is carrying out quality certification processes before receiving the materials, estimated at 100,000 tons annually and representing 20 percent of its yearly consumption, from Hyundai Steel. This is Hyundai Steel's first deal involving a significant volume, valued at approximately 110 to 180 billion won ($80.3 million-$131.5 million) in sales revenue, with an automaker other than Hyundai Motor Company and Kia. Since entering the auto steel market in 2010, it has relied on Hyundai Motor and Kia for over 80 percent of its supply volume. Industry insiders indicate that GM Korea's supply reshuffle comes after GM's strategy to decouple from China for key materials such as steel in light of the ongoing trade war between the US and China. Following the recent agreement with Hyundai Steel, GM Korea will now use Korean-made steel across its entire vehicle lineup. 'Although Chinese automotive steel is exempt from the recent 50 percent tariffs imposed by the US government on China-made steel and aluminum, the carmaker appears to have chosen Hyundai Steel to mitigate supply risk concerns arising from tensions between the two countries,' said an industry source on condition of anonymity. GM Korea manufactures models, including the Trax Crossover SUV and Trailblazer SUV, at its Bupyeong plant in Incheon, with over 85 percent of production exported to the US market. The source added that there is also a potential for the US to increase tariffs on cars that use Chinese steel. This partnership is also part of the broader alliance formed last year between Hyundai Motor Group and GM, where Hyundai Motor Group Chairman Chung Euisun and GM CEO Mary Barra agreed to collaborate on key strategic areas in the automotive sector. These include sourcing steel and raw materials for batteries as well as joint development and production of passenger and commercial vehicles, internal combustion engines, and electric and hydrogen systems. Experts say Hyundai Steel and GM Korea's new business ties could pave the way for a revamped collaboration between the steelmaker and GM in the US. 'Hyundai Steel is constructing an electric arc furnace-based steel mill in Louisiana, not far from GM's Tennessee plant,' said Kim Pil-su, a car engineering professor at Daelim University. 'As the car manufacturer is pushing to expand production in the US, it could leverage China-free auto steel sheets from Hyundai Steel.' On Wednesday, GM shared its plans to invest $4 billion over the next two years to increase vehicle production at its plants in Michigan, Kansas and Tennessee. The company expects that this expansion will allow it to produce more than 2 million cars annually in the US. In March, Hyundai Motor Group announced that Hyundai Steel looks to invest $5.8 billion to set up its first overseas production base in the US. With commercial production slated for 2029, the steel manufacturing plant's annual capacity is expected to be 2.7 million tons. This facility will specialize in steel sheets for electric vehicles.
Korea Herald
05-06-2025
- Automotive
- Korea Herald
Will new Nexo revive shrinking hydrogen mobility push?
Hyundai set to boost hydrogen-driven eco-friendly transition with new fuel cell SUV, but market interest in hydrogen mobility remains low Hyundai Motor is set to launch the fully revamped Nexo as early as this month in Korea, seven years after introducing its sole fuel-cell-powered sport utility vehicle currently on the market. With improved performance and fuel efficiency over its predecessor, the new Nexo is positioned to lead Hyundai's initiative to drive the global transition to hydrogen mobility — a vision first outlined in 1998 by Chung Mong-koo, honorary chair and father of current Chair Chung Euisun. 'Nexo represents the essence of sustainable mobility proposed by Hyundai Motor,' said Chung Yoo-seok, executive vice president of Hyundai Motor, during the vehicle's unveiling at the Seoul Mobility Show in April. 'We will accelerate the expansion of the global hydrogen ecosystem beyond Korea's borders and aim to achieve our annual sales target of 11,000 units.' However, recent market conditions cast uncertainty over the ambitions of the world's leading hydrogen vehicle maker. Declining demand for fuel cells In recent years, Korea's fuel-cell electric vehicle market has declined. According to SNE Research, sales dropped from 10,336 vehicles in 2022 to 3,688 in 2024, marking a 65 percent decrease. This downturn reflects deeper structural challenges for FCEVs, rather than a temporary pause, as the transition to eco-friendly mobility is increasingly driven by battery electric vehicles, experts said. 'Many consumers are still hesitant even about EVs, which are far more familiar,' said an industry source who requested anonymity. 'So it's no surprise that skepticism runs even deeper when it comes to hydrogen.' Limited charging access and high hydrogen fuel prices also remain major hurdles for fuel cell mobility. Korea has around 221 hydrogen stations — more than Japan, the US or Germany — but drivers still face inconvenience when refueling. 'Due to amplified safety concerns, strict regulations have resulted in limited station hours and the placement of stations far from residential areas, even though such risks can be mitigated through multiple layers of safety measures,' said Lee Ho-geun, professor of automotive engineering at Daeduk University. Amid these ongoing challenges, the launch of the new model is expected to have a limited impact on the market. Hyundai sold around 750 FCEVs domestically in the first quarter of 2025, and projections suggest that total annual sales may remain close to last year's levels despite the new launch. The global market also shows limited reason for optimism, with only Hyundai and Toyota currently active in the passenger hydrogen vehicle segment. Worldwide sales of FCEVs dropped from 20,704 sales in 2022 to 12,866 in 2024. The decline appears sharper in the passenger segment because China, which has grown to account for 55 percent of global FCEV sales, remains focused mainly on commercial rather than private vehicles. 'Globally, the eco-friendly vehicle market is still largely driven by government policies, such as subsidies, since automakers have yet to achieve the cost and performance competitiveness needed to rival internal combustion engine models,' said Lee. 'Because many countries want to protect their local industries and lack proprietary hydrogen vehicle technology, they are not actively pursuing policies to adopt these vehicles.' Staunch commitment, but long road ahead Despite the discouraging outlook for hydrogen, Hyundai Motor Group has strengthened its momentum in hydrogen mobility efforts since last year, aiming to retain its leading position in the hydrogen mobility era expected to follow EVs. In 2024, it integrated the fuel cell business of its parts-making unit, Hyundai Mobis, into Hyundai Motor Co. to boost synergy between hydrogen technology and vehicle manufacturing. Separately, the group established an overseeing team to complete the hydrogen business value chain, moving beyond a sole focus on fuel cell production. The group also forged partnerships with rivals Toyota and General Motors to collaborate on hydrogen strategies. 'We will work with global partners and harness our full capabilities across the hydrogen value chain to accelerate the adoption of a hydrogen-powered society,' emphasized the group's Vice Chair Chang Jae-hoon at the World Hydrogen Summit 2025 in Rotterdam, Netherlands, in May. Lee also echoed Hyundai's expansion of cooperation with other companies, saying, 'Hyundai needs to expand the overall market by licensing some basic technologies to other automakers at minimal royalty fees.' However, Kim Pil-su, a car engineering professor at Daelim University, said yearslong efforts are still needed before fuel cell vehicles can become a profitable business. 'The hydrogen mobility sector still faces numerous challenges, including high costs and issues related to hydrogen generation, delivery and storage,' he said, noting that automakers in the US and Europe have abandoned plans to launch fuel-cell passenger cars. 'For hydrogen to be truly eco-friendly (to be widely accepted by countries), it must move beyond heavy reliance on fossil fuels for production. However, mass production through water electrolysis is expected to take over a decade.'
Korea Herald
28-03-2025
- Automotive
- Korea Herald
Hyundai opens Metaplant America, ushering in new US growth era
$8 billion state-of-the-art factory redefines Korean auto giant's US strategy amid EV, tariff shifts ELLABELL, Georgia -- Hyundai Motor Group on Wednesday held the grand opening ceremony of Hyundai Motor Group Metaplant America, an $8 billion cutting-edge automotive manufacturing plant in Bryan County, Georgia, signifying the Korean auto giant's local expansion bid to counter the second Trump administration's strict tariff polices. 'Our unwavering belief in this community and in strengthening the American auto sector is what inspired Hyundai's plans for Metaplant from the start,' said Hyundai Motor Group Executive Chair Chung Euisun during the event held at the 11.76 million-square-meter site in Ellabell. 'In 2019, it was also what inspired our biggest investment ever in the United States: $20 billion. Two days ago, it was my great honor to go to the White House and, right alongside President Trump and his team, announce a new and even bigger investment: a historic $21 billion to support and expand our operations, here in Georgia and in other parts of this country.' Hyundai Motor highlighted that HMGMA is a software-defined factory that embodies the innovation of manufacturing through autonomous technologies, artificial intelligence, data analytics and robotics. HMGMA began rolling out the Ioniq 5, Hyundai Motor's electric sport utility vehicle, in October last year, about two years after the groundbreaking ceremony took place in October 2022. It proceeded to start producing the Ioniq 9, Hyundai's flagship three-row electric SUV, in March this year. According to Hyundai, HMGMA plans to expand its production lineup to models of its sister affiliate Kia next year and its premium brand Genesis later on. The Korean automaker's newest plant will also manufacture hybrid vehicles to accomodate the EV transition period. The Korean automaker plans to increase the annual production capacity of HMGMA to 500,000 units from the current 300,000 units. Song Ho-sung, CEO of Hyundai's sister affiliate Kia, told reporters that his company's vehicles will eventually take up 40 percent of the total production at HMGMA, with the first model slated to be on the assembly line about halfway into next year, without disclosing which vehicle will be the first to be rolled out there. Hyundai Motor Group Vice Chair Chang Jae-hoon said HMGMA has set up the assembly lines so that it can produce up to eight different models at the same time, adding that Hyundai Motor and Kia aim to increase their current market share of about 11 percent and expand their presence in the US. Hyundai, Kia and the former's premium brand Genesis combined for a record-setting 1.71 million vehicles sold in the US last year. On the back of the additional production capacity in America, Chang explained that the auto conglomerate plans to ramp up its proportion of US production to approximately 44 percent from the current 36 percent. Hyundai Motor Group's four other affiliates -- Hyundai Mobis, Hyundai Glovis, Hyundai Steel and Hyundai Transys -- have also set up their plants at HMGMA to establish a gigantic auto cluster in the southern part of the US. There, Hyundai Mobis has built its largest overseas production facility capable of supplying battery systems and parts modules sufficient to equip 300,000 cars per year. Hyundai Glovis operates a consolidation center and vehicle processing center as the logistics unit of HMGMA, using drones and data analytics to predict demand for parts and check inventory in real time. Hyundai Steel runs a steel service center to supply enough high-strength steel sheets and plates to assemble 200,000 cars per year, with plans to double the supply capacity in the future. Hyundai Transys has built a plant with capacity to supply vehicle seats and their frames for 420,000 cars per year. Hyundai Motor is also constructing a $4.3 billion EV battery cell plant at HMGMA through a joint venture with Korean battery manufacturer LG Energy Solution. The battery plant, with an annual capacity of 30 gigawatt-hours, is expected to be completed next year, aiming to secure battery supply sufficient to power about 360,000 Ioniq 5s annually. According to Hyundai, the establishment of HMGMA has resulted in a total of 17 Korean partners either newly entering Georgia or expanding their presence to secure new contracts and strengthen their global competitiveness. Hyundai and Kia have been operating manufacturing plants in Alabama and Georgia since 2005 and 2010, respectively. The former is capable of producing up to 400,000 cars per year while the latter's annual production capacity stands at 350,000 units. With the addition of HMGMA, the Korean auto conglomerate has secured a yearly production capacity of 1 million vehicles in the US. hwkan@
Korea Herald
27-03-2025
- Automotive
- Korea Herald
New US Metaplant built on community, innovation: Hyundai Motor chief
ELLABELL, Georgia -- Hyundai Motor Group Executive Chair Chung Euisun on Wednesday underscored the role of Hyundai Motor Group Metaplant America -- the Korean auto giant's latest manufacturing plant in Bryan County, Georgia -- as a place to build the future of mobility. 'At Hyundai, we don't just invest in technologies and automobiles,' said Chung in his welcoming remarks during the opening ceremony of HMGMA in Ellabell. 'We invest, first and foremost, in relationships. In the people we work with. In our partners. Our neighborhoods. Our communities. We don't just come to build a plant. We come to put down roots.' Mentioning the leadership of the state and federal governments, the support of Georgia's business community and the capabilities of HMGMA employees, the chief of the Korean auto conglomerate composed of Hyundai, Kia and Genesis underlined that 'the exciting future is coming into focus.' 'Every vehicle that leaves this plant will bear your imprint,' said Chung. 'In safety and in comfort, they will carry children to school and parents to work; they will take families and friends on new adventures.' The Korean auto conglomerate invested about $8 billion to set up HMGMA, a state-of-the-art auto cluster covering 11.76 million square meters of ground. The official opening ceremony came about two years after the groundbreaking. The Georgia-based plant began rolling out Hyundai's award-winning electric sport utility vehicle Ioniq 5 in October last year and started producing the automaker's flagship three-row electric SUV Ioniq 9 earlier this month. With the current annual production capacity of 300,000 cars expected to be increased by 200,000 in the future, HMGMA will roll out EVs and hybrid vehicles under the Kia and Genesis brands later on, according to Hyundai Motor. Chung told reporters on the sidelines of the event that HMGMA will serve as a linchpin of the group's plants across the world by integrating autonomous artificial intelligence and robotics technologies into manufacturing processes. Calling it an honor to announce the automaker's $21 billion additional investment in the US through 2028 alongside President Donald Trump at the White House on Monday, the Hyundai Motor chief downplayed the potential influence of the firm's financial commitment on US tariffs. 'Tariffs are a concern between countries,' said Chung. 'We don't think one company can largely change tariff policies. If it can have some positive effects, we would be very proud of what we have been trying to do. But the government should lead the negotiations once tariffs are announced, and that will be the starting point.' Hours after the HMGMA opening ceremony, Trump announced a 25 percent tariff on all auto imports without mentioning any exceptions. Signing an executive order at the White House, the US president said the auto tariffs will go into effect on April 2.
