Hyundai Motor Company and Kia Corporation announced they are reorganising their joint research and development (R&D) organisation to flexibly respond to the rapidly changing global automotive industry, advance the transition to electrification and accelerate the development of Software Defined Vehicles (SDVs). The new R&D organisation will transform from a centralised structure focused on vehicle development to an independent Allianced Tech Organization (ATO).
By establishing an R&D organisation that enables the timely development of innovative devices and services, Hyundai Motor and Kia are committed to leading the future mobility market where electrification and software capabilities are the key enablers.
To this end, Hyundai Motor and Kia have grouped together and elevated the areas directly related to vehicle development to enhance new vehicle development and secure quality in mass production. The companies also separated the next-generation innovative technology teams within the existing R&D Division as a stand-alone Tech Unit.
The revamped R&D organisation will be led by its new Chief Technology Officer (CTO), with each Total Vehicle Development (TVD) Division, Vehicle SW Tech Unit, and Mobility Engineering and Tech Acceleration (META) Tech Unit, as well as new business and Design Centers being reorganised to have their own development systems.
During this organisational restructure, 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 organisational restructuring.
“The new R&D organisation will be fast and flexible, operating with the agility of a startup, and will enable us to lead in the rapidly changing mobility landscape,” said President and CTO Yong Hwa Kim. “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.”
Under the new system, each Division, Tech Unit, and Center 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 startup.
In order to build a dynamic R&D system that can flexibly respond to rapid changes in the external business environment, Hyundai Motor and Kia have opted for a major reorganisation that completely transforms its perspective instead of making incremental changes.
The reorganisation is focused on continuing the transition to electrification and software-centred development, strengthening capabilities to create next-generation technologies and securing future growth engines in new business areas. Based on these efforts, Hyundai Motor and Kia expect to accelerate their journey to become smart and sustainable mobility solution providers.
