Hyundai and Kia restructure joint research and development
June 15, 2023
Hyundai Motor Company and Kia Corporation have announced that they are reorganising their joint research and development organisation in an effort to flexibly respond to changes in the global automotive industry, advance the transition to electrification and accelerate the development of Software Defined Vehicles (SDVs). The aim is to transform the current R&D organisation from a centralised structure focused on vehicle development to an independent Allied Tech Organisation (ATO).
The revamped R&D organisation will be led by its new Chief Technology Officer (CTO), with a Total Vehicle Development (TVD) Division, Vehicle SW Tech Unit, and Mobility Engineering and Tech Acceleration (META) Tech Unit, as well as business and Design Centres being reorganised to have its own development systems.
During the restructure, Executive Vice President Yong Hwa Kim, who has been leading the R&D Division, was promoted to president and CTO. Kim will now oversee the entire R&D organisation, while also taking a role as the Head of the Vehicle SW Tech Unit. Additionally, former Head of Total Vehicle Development Tech Unit Heui Won Yang will take Yong Hwa Kim’s place as Executive Vice President and Head of TVD Division.
“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 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 centre will independently focus on their technology development, unless collaboration is required where organisations can come together and separate as needed to perform flexibly, not dissimilar to a startup.
Total Vehicle Development Division
The Total Vehicle Development (TVD) Division is set to oversee the overall process of new vehicle development, including electric vehicles. Under this new structure, the TVD Division established the Genesis Development Tech Unit and Vehicle Development Tech Unit 1 for multipurpose vehicles and compact cars, alongside the Vehicle Development Tech Unit 2 for medium to large-size vehicles. This restructure looks to facilitate efficient new vehicle development at both the brand and platform levels.
Within each unit, there is a dedicated Project Manager organisation to oversee product development for each model; they will be supported by engineering design and test centres reporting directly to them. This structure looks to ensure a seamless and organic development process within each Tech Unit by preventing any interference between brands and vehicle classes, all whilst facilitating clear distinction between vehicle concepts.
The EV organisation, including the Electrified Propulsion Engineering Design Centre and Electrified Propulsion Test Centre, will now operate directly under the TVD Division. This looks to enable agile decision-making and drive innovative technological advancements. Dedicated research organisations focused on the all-electric driving range and EV safety have also been established, expediting the efficient development of critical electrification technologies.
Mobility Engineering and Tech Acceleration (META) Tech Unit
The Mobility Engineering and Tech Acceleration (META) Tech Unit is an organisation designed to lead the development of innovative next-generation products. The division consists of the Mobility Tech Centre, Vehicle Performance Tech Centre, Vehicle Architecture Development Centre and Materials Research & Engineering Centre, which consolidate the previously decentralised organisations that promote advanced technologies and basic performance in the areas of electrification, chassis and body.
The Mobility Tech Centre will be responsible for the development of future technologies and mobility concepts as well as securing next-generation architecture technologies, whereas the Vehicle Performance Tech Centre will be responsible for the mass application of outstanding technologies for high-performance vehicles as well as research and improvement of basic vehicle performance.
The Vehicle Architecture Development Centre has reportedly strengthened its functions for architecture-based development, with areas such as development cost and virtual development also being integrated under the Centre.
The previously independent Materials Research and Engineering Centre will now be able to collaborate with other R&D organisations.
Independent R&D and Design Centres
Hyundai and Kia have reportedly maintained an independent R&D structure for Design Centres and business units, such as commercial vehicles, batteries, robotics and hydrogen fuel cells, except passenger vehicles. These have been placed under the direct supervision of the new CTO and will operate independently, conducting research and developments in their respective fields whilst also nurturing organic collaboration with other departments when necessary
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