Hyundai and Kia rejig R&D organisation to focus on future mobility, electrification, and robotics

Korean automotive giants Hyundai Motor Company and Kia Corporation today announced that are reorganising their joint research and development (R&D) organisation to “flexibly respond to the rapidly changing global automotive industry”.

“The new R&D organisation will be fast and flexible, operating with the agility of a start-up, and will enable us to lead in the rapidly changing mobility landscape,” said Yong Hwa Kim, President and CTO, Hyundai Motor Company said. “While the previous organisation was focused on the efficient development of vehicles, the new dynamic structure will meet ongoing changes in global consumer demands and expands the organisation to deliver aligned solutions in future mobility, electrification, software and robotics,” he adds.

The new R&D organisation, the companies said, will transform from a centralised structure focused on vehicle development to an independent Allianced Tech Organization (ATO). The companies also separated the next-generation innovative technology teams within the existing R&D division as a stand-alone tech unit.

“Under the new system, each division, tech unit, and centre will independently focus on their technology development, whereas for cases where collaboration is required, organisations can come together and separate as needed to perform flexibly, similar to a start-up,” the company said.

During this restructuring exercise, Executive Vice President Yong Hwa Kim, who has been leading the R&D division, was promoted to President and named CTO. Kim will oversee the entire R&D organisation, while also taking place of Head of Vehicle SW Tech Unit. In addition, Executive Vice President Heui Won Yang, who previously held the position of Head of Total Vehicle Development Tech Unit, was named to the Head of TVD Division, securing continuity in R&D amid the extensive organizational restructuring.

In 2003, Hyundai Motor and Kia established an integrated division that brought together R&D functions that had previously been spread across the country to improve its R&D capability. In the mid-2000s, when sales volumes accelerated rapidly, Hyundai Motor and Kia reshuffled the organization into a platform-based structure by vehicle type and class to better segment the development of a diverse product lineup, including global strategic vehicles.

The companies also carried out continuous organisational restructuring in 2012. The Division reorganised with the goal of strengthening basic vehicle performance and customer-centric values. In 2019, the companies established an architecture-based system structure to secure technological competitiveness.

The organisational changes are expected to further enhance the companies’ position in the future automotive industry and accelerate their progression into smart and sustainable mobility solution providers.