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What's Hyundai Heavy Vehicle's future?

  • 기사입력 2014.02.14 10:37
  • 기자명 신승영

[AutoDaily] Hyundai Commercial vehicle department encounters a crisis after a 10-year hiatus.
 
Last 2004, the company separated from Daimler-Benz in Germany. At that moment the prospect of Hyundai commercial vehicle department was in the air. However, Choi Han-young, the leader of strategy control, took over the company, then this department recovered.
 
The Hyundai commercial vehicle department went into bus market in Japan in 2009. Also, they successfully built joint factory with China in 2012.
 
They suggest medium-and long-term vision which they leap up the global TOP5 company of commercial part, through they construct 240 thousand units producing and selling.
 
The company, however, encounters a crisis again since vice president Choi resign after a 10-year hiatus.
 
Hyundai group made Choi Han-young who lead heavy truck and bus business department resign, and carried out a reshuffle.
 
Instead they removed executives place, Kim Choong-ho, president of domestic sales and project department, takes sales part. Vice president Yoon Yeo-cheol, specialist in labor, takes domestic production. Vice president Seol Young-heung, the head of business generalization in China, takes Sichuan factory in China.
 
Accordingly, president Kim Choong-ho handles the head of domestic and export part, Yoon Yeo-cheol takes factory in Junju. Shin Jong-woon manages product technique, Yang Woong-cheul takes commercial laboratory, and Seol Young-heung charges Chinese business department. The commercial vehicle department separates into 5 individual parts.
 
The reason they divided commercial part is Hyundai thought each department needs to an emergency measure.
 
The domestic sales of Hyundai commercial vehicle department decreased by 10.4% - 26,363 units from 29,430 units compared with previous year. Fortunately, export part was in active, so this decrease balanced. The total decrease was by 2%.
 
Compare to business plan reported at the beginning of the year, the sales was short by 10%. The business profit of commercial part is known to almost zero.
 
The problems of product management in Junju factory made CEOs have the spike.
 
The case of medium-sized County bus and Mighty truck increased demand recently, continued piling up release more 6-7 months in both domestic and export all the year over.
 
They were not able to produce engine properly because negotiation between the union was not successful about a rate of operation of engine. They was stolen these demand by Chinese company and Daewoo bus.
 
For this reason, president Kim Choong-ho takes sales part, because he recognized as the best in car sales field. Yoon Yeo-chul takes factory production and labor part, Seol Young-heung charges Sichuan factory in China where start to operate in April.
 
As every part allocated its expert, it can help recent Hyundai commercial part’s problem. But nobody can sure a directivity of each part and management plan how things go well.
 
Until now, vice president Choi have played role as a windbreak inside group. After his absence there is high probability of outside pressure.
 
The number of actual commercial department is China team 4, marketing team 21, domestic sales 40, and export 30, total approximately 100.
 
Compare to car part, an organization and investing expense are inadequate.
 
Some people in commercial department worries they are getting lose their position inside group.
 
Choi Han-young passed through a public relations team leader, vice president of export marketing, and president of strategy control team, and then he was nearest person of president Jung Mong-gu. He was left commercial vehicle department in 2004. Since then, he tried to comeback, however, he could not achieve his goal, then resigned half-way.
 
 

By Lee Sangwon.
(Translate by Lee Yeseul)
 
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