Hyundai Case Study
About HMC
The Hyundai Motor Company (HMC) is the largest South Korean automobile manufacturer, which is the fifth largest automaker in the world.
In 2006 and occupied the 10th place in the world ranking of OICA. In 2007 Hyundai again have excellent grades in initial quality survey by JD Power, one of the indicators of the industry most respected and that measures the performance of cars and customer satisfaction during the first 3 months of use.
In Korean, the word Hyundai means "modernity”. The brand was created in 1947 by Chung Ju-yung, the dominant figure of the Korean economy from 1960 until his death in 2001. Hyundai built its first car in 1968, the compact sedan Cortina, under license from Ford. In 1975, he made his first own model, the Pony, in collaboration with Mitsubishi. Currently, Hyundai has one of the research and development centers most respected in the industry having factories in the United States, India, China, Czech Republic, Venezuela and Brazil.
In the '90s, South Korea suffered from severe financial crisis also affected the automotive industry involving the bankruptcy of Daewoo (now part of General Motors). Hyundai, overcame the crisis, but was forced to divide its many operations (construction, banking, petrochemicals, logistics, shipbuilding, etc.) and one of them, the most internationally known, is the Hyundai Automotive Group which now includes the Kia Motors. However, in 2004, Hyundai CEO has charges that he campaigns finance law managerial negligence and also the Government fined HMC with $25 million for alleged unfair market practices, finally, Chung Mong Koo received a 3 years jail term for embezzling more than $100million which it damage the company image and reputation.
In 2009, even with decreased image and reputation of Hyundai, with Hyundai CEO’S embezzling case, Hyundai was the only major global manufacturer increased its sales in the U.S., while its competitors Toyota, Honda and General Motors has dropped down.
The Hyundai Motor Company (HMC) is the largest South Korean automobile manufacturer, which is the fifth largest automaker in the world.
In 2006 and occupied the 10th place in the world ranking of OICA. In 2007 Hyundai again have excellent grades in initial quality survey by JD Power, one of the indicators of the industry most respected and that measures the performance of cars and customer satisfaction during the first 3 months of use.
In Korean, the word Hyundai means "modernity”. The brand was created in 1947 by Chung Ju-yung, the dominant figure of the Korean economy from 1960 until his death in 2001. Hyundai built its first car in 1968, the compact sedan Cortina, under license from Ford. In 1975, he made his first own model, the Pony, in collaboration with Mitsubishi. Currently, Hyundai has one of the research and development centers most respected in the industry having factories in the United States, India, China, Czech Republic, Venezuela and Brazil.
In the '90s, South Korea suffered from severe financial crisis also affected the automotive industry involving the bankruptcy of Daewoo (now part of General Motors). Hyundai, overcame the crisis, but was forced to divide its many operations (construction, banking, petrochemicals, logistics, shipbuilding, etc.) and one of them, the most internationally known, is the Hyundai Automotive Group which now includes the Kia Motors. However, in 2004, Hyundai CEO has charges that he campaigns finance law managerial negligence and also the Government fined HMC with $25 million for alleged unfair market practices, finally, Chung Mong Koo received a 3 years jail term for embezzling more than $100million which it damage the company image and reputation.
In 2009, even with decreased image and reputation of Hyundai, with Hyundai CEO’S embezzling case, Hyundai was the only major global manufacturer increased its sales in the U.S., while its competitors Toyota, Honda and General Motors has dropped down.