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(SEOUL=NEWSIS)Hyundai Motor Group (Chairman Chung Mong-Koo) plans to invest KRW 81 trillion by 2018.
Hyundai Motor Group announced January 6 that it will invest a total of KRW 80.7 trillion over the next four years in equipment (KRW 49.1 trillion) to enhance productivity (this will include building new or expanding factories), establish a global business center (GBC) and expand IT infrastructure; and in research and development (R&D, KRW 31.6 trillion).
Aiming to become the leader of the automobile industry, Hyundai Motor Group will secure core technology that is related to future vehicles, including eco-friendly and smart vehicles, through what would be its largest investment ever.
The company will create a foothold for growth by expanding investment in equipment and global productivity. It will advance the development capability of state-of-the-art new material through stable investment in the materials sector and prepare a foundation for the innovative enhancement of its brand power through the investment in the GBC.
It will increase investment in automobile-related sectors including construction and logistics to build a system that can maximize synergy between its subsidiaries.
The annual average investment of Hyundai Motor Group by 2018 is KRW 20.2 trillion, a 35 percent increase from the previous year (KRW 14.9 trillion). The investment is more than KRW 1 trillion higher than the Korean government’s budget for R&D (KRW 18.9 trillion) in 2015.
Hyundai Motor Group will make a large-scale investment in the automobile sector, the core of the company.
The company, having achieved annual global sales of 8 million vehicles, will prioritize improving the competitiveness of its cars and invest KRW 68.9 trillion in the automobile sector, which would account for more than 85 percent of the KRW 80.7 trillion.
It will proactively respond to the rise in global demand by building plants in growth markets, including China and Mexico, to expand productivity. It will substantially expand its powertrain productivity, including engines and transmissions, based on its production bases in Ulsan, Hwaseong and Seosan and carry out R&D on the next generation’s powertrain and investment in equipment.
Hyundai Motor Group will invest KRW 11.3 trillion to develop various eco-friendly vehicles, including plug-in hybrids, hybrids, electric vehicles and fuel cell electric vehicles and to strengthen its status as a green brand by securing source technology, which is related to core parts including motors and batteries, by 2018.
The company will invest KRW 2 trillion in smart vehicles to improve the technology of autonomous driving and vehicle IT and develop core parts for vehicle semiconductors and autonomous driving.
It will accelerate the construction of the GBC to boost its brand value.
The GBC, which will be built on Korea Electric Power Corporation land in Samsung-dong, Seoul and serve as the global control tower of Hyundai Motor Company, will play a pivotal role in solidifying its position as a globally leading company by innovatively strengthening its brand value.
Hyundai Motor Group will invest KRW 11 trillion in the construction of the GBC, which will create 4,225 jobs.
Source: Newsis (January. 06, 2014)
** This article was translated from the Korean.