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“What we celebrate today and what makes us especially proud is the growth of
the Hyundai family which now extends to 10 million satisfied customers around
the world,” Hyundai Motor Co. Vice Chairman and CEO Kim Dong-Jin told an
assembled crowd of employees, domestic journalists, government officials and
senior executives representing Korea's leading automaker and its suppliers.
“Last year, for the first time, Hyundai Motor Co. saw its overseas sales pass
the one million-a-year mark, a feat second only to Toyota in volume terms,” Vice
Chairman Kim explained.
“Today, Hyundai Motor Co. employs, directly and indirectly, some one million
people worldwide and conducts business with nearly 2000 local and overseas
suppliers. And with foreign exchange earnings of $US10 billion last year,
Hyundai Motor Co. is a major contributor to the growth and development of the
Korean economy, as it has been since its establishment in 1967.
Between 1976 and 2003, Hyundai Motor Co.'s exports have skyrocketed from
$US3.1 million to $US12 billion, the latter figure accounting for five percent
of Korea's total exports that year.
By investing in continuously upgrading its technology, the expansion of its
knowledge base and the cultivation of new markets even during economically
challenging times such as the '70s and '80s oil shocks and the 1997 Asian
financial crisis, Hyundai Motor Co. has also emerged as the unquestioned leader
of the Korean automotive industry.
Worldwide acceptance of the Hyundai brand has grown commensurately with the
strides in quality which have been spearheaded by the Quality First campaign
initiated by Chairman Chung Mong-Koo. Citations from J.D. Power &
Associates, Strategic Vision, AutoPacific and other independent arbiters of
automotive quality attest to the huge gains Hyundai has realized in the quality,
reliability and appeal of its vehicles.
The number of export markets have grown in step with the increase in exports.
In 1980, Hyundai vehicles were sold in just 38 countries but the number has
grown to 193 with Iraq, Afghanistan and Tunisia accounting for the most recent
additions. At the same time, the worldwide total of dealers has surpassed 5000
while new export bases have been established through Hyundai Motor Co.
manufacturing subsidiaries in India and Turkey which now serve markets
worldwide.
It took Hyundai Motor Co. 22 years to pass the five million export milestone
which was reached in 1998. But the second five million was realized in just 5.5
years. Set end-to-end, the 10 million vehicles would form a line 45,000km in
length—surpassing the circumference of the globe. Even more remarkable is the
fact that Hyundai managed to reach this milestone in just 28 years since filling
its very first overseas sale, a modest order for six Pony subcompacts for a taxi
fleet customer in Ecuador.
By far, the most popular Hyundai export model has been the Accent which
accounted for 2.1 million of the 10 million total followed by Elantra which in
its three iterations made up 1.72 million. Since 2000, Hyundai has seen a steady
increase in the overseas demand for higher value-added vehicles such as the
Sonata and Santa Fe, models which have helped upgrade the brand image of
Hyundai.
To mark this special occasion, a number of citations and plaques of
appreciation were presented by Vice Chairman Kim Dong-Jin. Recipients included
local suppliers who have met the company's uncompromising quality standards and
who have played a major role in helping Hyundai Motor Co. reach this major
milestone. Plaques were also handed out to outstanding Hyundai employees in the
production, quality control, supply, R&D, marketing and overseas sales
departments.
First half 2004 profit down
Meanwhile, Hyundai also announced that its 2004 first half net income fell by
1.6 percent y-o-y to 973 billion won ($US 832 million) on revenues 13.4 trillion
won ($US 11.45 billion) as sluggish domestic demand, heavier marketing expenses
in the home market and escalating commodity prices squeezed profitability.
Unit sales for the period touched 794,039 down 5.8 percent y-o-y while
exports rose 5.4 percent to 520,864 units buoyed by brisk demand in the USA,
Europe and China where sales were up 2.8 percent, 20.4 percent and 172.3 percent
respectively. Domestic sales however fell by 21.6 percent to 273,175 units.
Operating profit slipped by 6.7 percent to 1.1738 trillion won.
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