Hyundai Motor Company and Kia Motors Corporation

Self-driving cars

• Hyundai self-driving cars

Performance indicators

2024: Continued decline in car sales in China

2023: 3rd largest car sales in the world

2022: Internet-Connected Cars Market Share - 6.9%

Source: Counterpoint Global Connected Car Tracker
Based on Q1 2019 to Q4 2022 data

2021: Number of cars filed - 7,189,893

The largest suppliers in terms of the number of cars sold in 2021

2020: Global Auto Market Share - 8%

Hyundai's share of the global car market was 8% (Nikkei data). Read more here.

Business in Russia

• Hyundai Motor Manufacturing Rus (HMMR Hyundai) - production
• Hyundai Motor CIS - distribution

History

2023

Hyundai and Kia recall 3.4 million cars, which for no reason light up

The American divisions of the Korean automakers Hyundai Motor and Kia recalled about 3.4 million cars due to the risk of fire in the engine compartment. This was announced on September 27, 2023 by the press service of the US National Highway Traffic Safety Administration (NHTSA). Read more here.

U.S. Harassment for Child Labor Use in Alabama

Reuters in April 2023 published data on the widespread illegal use of child workers in factories supplying Hyundai and Kia products in the United States.

After exposing the labor of underage migrants at chicken factories in Alabama in the United States, it is reported that children work on assembling parts for Korean automakers across the state, leading to government investigations.

Leakage of customer data, including residential addresses and VIN codes

In mid-April 2023, Hyundai reported a personal data leak affecting car owners in Italy and France, as well as those who ordered a test drive of cars at dealerships in these countries.

Hyundai customers have received letters informing them that their data was available as a result of a recent hack that the South Korean automaker's regional branches were subjected to. The following types of data were revealed in the incident, according to multiple social media posts, as well as a sample letter shared on his blog by leak aggregator creator Troy Hunt:

• E-mail;
• Postal addresses;
• Telephone numbers;
• Vehicle chassis numbers.

Hyundai reports personal data breach affecting car owners in Italy and France

Hyundai stressed in both letters that the attackers could not obtain financial data, and that the company had no reason to believe that the open data was used for fraud. The South Korean automaker did not specify when the breach occurred. However, Hyundai said the company launched an investigation on April 13, 2023, as soon as it learned of the cyber attack and informed the relevant law enforcement agencies.

Despite the lack of evidence that the data was used for fraudulent purposes, out of extreme caution, we suggest that you be especially careful and check any attempts to contact by email, mail and text messages that may seem to come from Hyundai Italia or other Hyundai Group entities. Due to the fact that these may be phishing and social engineering attempts from cybercriminals, a message from Hyundai.

Hyundai representatives report that they have already involved IT information security specialists in the investigation, who turned off the systems affected by the attack until additional protective measures are introduced.^[1]

2022

$2 billion write-off due to defective engines

On October 18, 2022, South Korean companies Hyundai and Kia announced a large cash write-off for the third financial quarter. The reason is problems with internal combustion engines of the Theta GDI family.

In total, automakers will write off 2.9 trillion won, or approximately $2 billion. Of this amount, 1.36 trillion won will fall on Hyundai, another approximately 1.54 trillion won - on Kia. According to Bloomberg estimates, the losses of companies will be 44% and 66% of operating profit for the third quarter, respectively.

Hyundai and Kia wrote off $2 billion due to defective engines

Hyundai said in a statement that since 2020, car owners, as part of a lifetime manufacturer guarantee, have demanded replacement of Theta engines more often than expected. In addition, in the context of a pandemic and a difficult economic situation, the life cycle of used vehicles has increased. Engine problems affect about 2.4 million Hyundai cars and an estimated 1.8 million Kia cars.

{{quote 'We sincerely apologize for the repeated quality issues and the additional costs associated with the recall of Theta II GDI engines. We will make every effort to ensure the proper quality of power plants, taking into account market conditions, in order to prevent another occurrence of problems, "said Cha Seong-ju, head of quality at Hyundai Motor Group. }} In 2015 and 2017 Hyundai and Kia recalled about 1.2 million cars in the American market due to defects identified in the engines. In some cases, problems could provoke the ignition of vehicles. In 2020, companies wrote off 3.36 trillion won in costs related to the settlement of a class action lawsuit filed by owners of defective cars in the United States. After that, manufacturers offered an unprecedented lifetime warranty on their powertrains as part of efforts to improve the tarnished reputation.^[2]

Recall of hundreds of thousands of cars that for no reason light up

At the end of August 2022, Korean automakers Hyundai and Kia announced the recall of more than 281 thousand cars in the United States due to this problem, which the developers have not yet figured out how to eliminate. The companies reported 25 cases of fire or melting in the United States and Canada caused by the problem, but no accidents or injuries were recorded. Read more here.

Incrimination in the use of child labor

On July 22, 2022, it was established that a subsidiary in Hyundai the state Alabama USA was attracting minors aged about 12 years to work at a facility supplying parts for the Korean automaker's assembly lines. More. here

The beginning of the use of chips from household appliances in cars

At the end of February 2022, Hyundai began using integrated circuits in its cars, which are used in household appliances. This step of the South Korean auto giant is associated with a shortage of chips, which was throughout 2021 and, most likely, will remain in 2022.

According to DigiTimes, integrated circuits for household appliances are more available than those supplied by automotive chip manufacturers. The company was conducting tests to find out if these chips could replace traditional automotive semiconductors. Sources of the publication among suppliers of components for vehicles said that the responsibility for the production of safe cars lies with automakers, and companies have the right to decide which components manufacturers use in cars. While Hyundai has taken the first step, other automakers are unlikely to follow suit. With most carmaker groups and concerns opting to address chip shortages by reducing the number of chips used in cars, the publication said.

Hyundai began to use chips from household appliances in cars

While automakers typically require chip suppliers to be certified by the International Organization for Standardization (ISO), automakers can decide for themselves whether they want to use other chips, according to DigiTimes interlocutors. There are several factors that could deter other automakers from using chips for household appliances:

• Changes in the functions of additional equipment such as headlights and taillights can still affect the safety of the vehicle;
• Instrument chips are less resistant to heat, shock and vibration and have a shorter lifespan, which could undermine safety in the long term.

Any automaker would like to avoid a threat to customer safety or the need to recall their products. The recall is not only expensive, but also damages the reputation of the brand, sources say to DigiTimes. No major automaker can afford to take the wrong step after the business suffered from the coronavirus infection pandemic (COVID-19) and was absorbed by the growth in the number of electric vehicles and novice manufacturers.

It is noted that a similar solution to the problem is being considered in the Japanese Toyota, which began to stock up on general-purpose chips in case the company has difficulties purchasing car chips. The possibility of using other chips is also being studied at Nissan.^[3]

2021: US authorities pay engineer $24 million for marriage information in Hyundai cars

On November 9, 2021, the National Highway Traffic Safety Administration (NHTSA) announced that it was awarding the first whistleblower award in its history. NHTSA will pay more than $24 million to the whistleblower in connection with information provided to them regarding Hyundai Motor America and Kia Motors America.

This award represents the maximum percentage allowed by the law of the country, of the amount of $81 million collected by the United States and is the first award that NHTSA issued in accordance with its authority. The complainant provided NHTSA with information related to Hyundai and Kia's violations of the Safety Act. In November 2020, NHTSA issued consent decrees with Hyundai and Kia, reflecting the agency's assessment that the companies conducted an untimely recall of more than 1.6 million vehicles equipped with Theta II engines, and inaccurately informed NHTSA of important information about the nature of serious defects in the engines.

The total amount of fines provided for by consent decrees amounted to $210 million, of which $81 million was paid to the US government in the form of funds. Under the law, NHTSA can award a maximum of 30% of the money raised to a whistleblower. The whistleblower provided significant information in a case that resulted in more than $1 million in fines.

Whistleblowers play a crucial role in providing NHTSA information about serious security issues that lurk from the agency. This information is critical to public safety in the country, and we are committed to rewarding those who bring information to us, "said NHTSA Deputy Administrator Stephen Cliff.

Whistleblowers are protected by US law. Although NHTSA is in the process of developing rules for its program, whistleblowers can receive awards without approved rules. In early 2021, the agency launched a webpage to help applicants determine what information they should provide and how to do so. NHTSA has taken these actions to facilitate access to this program in recognition of the important role of whistleblowers in improving road safety in the country.

NHTSA welcomes information from whistleblowers on a wide range of issues, including potential vehicle safety defects, failure to comply with Federal Vehicle Safety Standards, and violations of the Vehicle Safety Act. This information can lead to official actions, including investigations, car recalls or the enforcement of a civil fine. Potential whistleblowers can already provide information to the agency by contacting NHTSAWhistleblower@dot.gov or the agency's hotline by calling 888-327-4236.^[4]

2020

Purchase of robot developer Boston Dynamics for $880 million

On December 11, 2020, Hyundai Motor Group announced the purchase, in Boston Dynamics which American the manufacturer robots is valued at $1.1 billion. More. here

Financing the Boston Dynamics acquisition

Korean the carmaker Hyundai bought the manufacturer robots Boston Dynamics from. Japanese SoftBank This became known on December 10, 2020. Hyundai Motor will fund about half the cost. More on this. here

Investing 100 million euros in the company of the ex-head of Yota - Arrival

In mid-January 2020, South Korean automakers Hyundai and Kia announced an investment of 100 million euros in Arrival. As a result of this financing deal, the British developer of electric vans, founded by the ex-head of the telecommunications operator YotaDenis Sverdlov, was estimated at 3 billion euros. Read more here.

2019

Creation of MoceanLab Car Sharing Company

At the end of 2019, Hyundai Motor launched the MoceanLab car-sharing service in Los Angeles, and at the beginning of 2020, the company announced the expansion of its fleet. Read more here.

Using VR headsets

On December 18, 2019, Hyundai announced the start of using virtual reality (VR) technologies for car development. In particular, VR glasses help engineers evaluate design solutions.

The Hyundai Research Center in Namyang (South Korea) premiered a VR system that, according to the developers, improves the quality and efficiency of design. The new solution is expected to reduce the development time of the car by 20%, and annual design costs by 15%.

Hyundai began to create cars using virtual reality

With the help of special glasses, designers and engineers get into virtual reality, the interaction with which is provided by 36 motion sensors. The system models elements of external and internal construction, lighting, colors, materials, and even creates a virtual environment. Several applications have been created to develop cars. With their help, designers and engineers will be able to assess the quality of the car in advance even before its assembly begins.

By mid-December 2019, the VR design analysis system supports up to 20 users at a time.

The transition to virtual design is necessary to quickly and flexibly respond to customer needs and conceptual changes in the automotive industry, says Albert Biermann, head of research at Hyundai Motor Group. - Effective virtual processes will help improve quality, profitability and ultimately increase investment in R&D to ensure our competitiveness in the mobility of the future.

In the future, Hyundai intends to implement the possibility of remote access to the VR platform. This will allow specialists from different parts of the world to interact in a virtual environment in real time. Plus, augmented reality functions will be introduced.^[5] 

Allocation of $52 billion for the development of electric vehicles

In early December 2019, Hyundai announced the allocation of 61.1 trillion won ($52 billion) for the development of electric vehicles. Such plans are contained in the published roadmap "Strategy 2025."

As reported in a press release, the transition to technologies with zero harmful emissions will require large investments. Part of the planned budget will go to electrification, autopilot, artificial intelligence, robotics, drones and power.

By 2025, Hyundai expects to sell annually about 670 thousand electric vehicles, including 560 thousand cars on battery power supplies and 110 thousand on fuel cells, and enter the top three world manufacturers of electric vehicles.

Hyundai Corporation seeks to enter the top three world manufacturers of electric vehicles

The aim of the company's new strategy is to introduce as many electric vehicles as possible in key markets such as Korea by 2030 and USA China , and by Europe 2035, to establish deliveries to emerging markets such as and. India Brazil

Hyundai is also considering developing flying cars that could be commercialized before self-driving cars, said company executive vice chairman Euisun Chung[6]

Hyundai and Kia car engines on fire due to poor software

On October 11, 2019, it became known that Hyundai Motor and its affiliate Kia Motors will pay 900 billion won (about $758 million) to resolve a class action lawsuit, the authors of which accused automakers of selling cars with defective engines.

According to Reuters, the agreement reached assumes that Hyundai will pay 600 billion won (will be taken into account in the third quarter of 2019), and Kia - 300 billion won.

In addition, the company pledged to install new software in transportation that will monitor engine operation and identify symptoms characteristic of the specified engine problem in order to prevent fires.

Hyundai Motor Concern and affiliated company Kia Motors will pay 900 billion won (about $758 million) to settle a class action lawsuit, the authors of which accused automakers of selling cars with defective engines

Hyundai and Kia will also offer additional options for paying compensation and warranty services to owners of defective cars.

The complaints relate to cases of spontaneous ignition of motors in some Hyundai and Kia cars produced in 2011-2019, as well as inaction by South Korean automakers. In the United States, we are talking about 4.17 million faulty cars equipped with gasoline engines with direct injection Theta II.

Numerous cases of car fire are known, and some of them were previously recalled by companies to troubleshoot problems.

In March 2019, Kia reported that the company did not supply engine models to Russia, which became the subject of an investigation in the United States into car fires. The company also said that not a single case of fire not related to the accident was recorded in Europe.

Earlier in 2019, the American Highway Safety Agency (NHTSA) launched an investigation due to alleged defects in 3 million Hyundai and Kia cars after receiving reports of more than 3 thousand cases of fires in which at least 100 people were injured.^[7]

Creation of Hyundai Aptiv

On September 23, 2019, the South Korean automaker Hyundai Motor Group and the American manufacturer of automotive components Aptiv announced the creation of a joint venture (JV) for the development of self-driving cars. Better here.

Joining Linux Foundation and Automotive Grade Linux

In early January 2019, Hyundai joined the Linux Foundation and the Automotive Grade Linux (AGL) project, whose supporters are developing a free platform for automotive infotainment systems, telematics solutions and dashboards. The South Korean company has become another automaker that is seriously exploring opportunities to introduce open source software into vehicles.

Companies supporting AGL also include Toyota, Ford, Honda, Suzuki, Intel, Nvidia, ARM and LG. Automotive Grade Linux CEO Dan Cauchy called Hyundai's entry into the Linux Foundation "an important milestone."

Hyundai joins Linux Foundation to implement open source software in cars

AGL's rapid growth proves that automakers recognize the business value that open source brings. Hyundai joins the Linux Foundation as a silver member and AGL at the bronze level, he noted. The membership level is determined based on the amount the company donates to the Linux Foundation.

For Hyundai, open collaboration is crucial because it supports the "connected car concept," says Paul Choo, vice president and head of the infotainment technology center at Hyundai. According to him, car companies traditionally take at least three years to develop automotive services.

However, the problem, as a rule, lies in the quality of the code that programmers write at home. An AGL study found that a car with network functions uses about 100 million lines of program code, 11 times more than in F-35 fighter-bombers. ^[8]

The use of the AGL platform will allow Hyundai to accelerate the development of automotive technologies. Members of the organization gain access to the so-called unique code base (AGL Unified Code Base), which, according to the Linux Foundation, includes 70% of what is enough to start a production project. The platform also includes an operating system, software connector, and application infrastructure.

2018: Investment in Swiss-Russian developer of AR solutions for WayRay cars

September 18, 2018 it became known about the attraction of WayRay investments in the amount of $80 million. The financial deal headed by Porsche was attended by the Russian Direct Investment Fund (RDIF) together with a consortium of sovereign wealth funds (Japan, Saudi Arabia, Kuwait, UAE, Bahrain), including the Russian-Japanese Investment Fund (created by RDIF and JBIC), as well as Hyundai Motor, Alibaba Group, AFK Sistema, China Merchants Capital funds and JVC Kenwood. Read more here.

Notes