Hyundai chairman calls for enhancing ‘quality’

Hyundai Motor Group Chairman Chung Mong-koo, left, inspects affiliate Kia Motor’s plant in Georgia in the U.S., along with Senator Saxby Chambliss, Wednesday. (Photo : Hyundai Motor Group)

Hyundai Motor Group Chairman Chung Mong-koo called for the firm’s U.S. factories to improve product quality, Wednesday, so that customers are offered value for money, during an inspection of the automaker’s plant in the United States.

The chairman flew to the U.S. on Monday to meet with executives in Los Angeles, where Hyundai’s U.S. sales arm is located, and visit the company’s plant in Alabama along with that of its affiliate, Kia Motors, in Georgia to study how to counteract Toyota’s recent rapid growth in the world’s largest car market.

“This plant is very important to tackle insufficient supply amid the growing demands in the U.S. market,” Chung said when visiting the Kia plant in Georgia. “Be sure to conduct thorough inspections on quality to enhance customers satisfaction and minimize inconvenience by supplying cars in a stable manner.”

The plant, which began operating in 2009, saw an increase in production to 272,000 in 2011 from 167,000 in 2010. To increase output, the company started a third shift there last July to reach an annual production capacity of 360,000. The plant will manufacture Kia’s popular sedan, the K5, from September.

“Since we started a third shift, we also need to pay close attention to enhance the quality of our cars,” Chung said.

He also emphasized that they will compete with Japanese rivals not by lowering prices but by improving vehicles in terms of quality, service and better business strategies.

The automaker’s sales in the U.S. have continued to rise and its market share stood at 8.9 percent last year, up from 2.6 percent in 2002. But Chung’s remark came as Japanese automakers such as Toyota and Honda have seen a strong sales rebound this year, after they suffered last year amid a parts shortage caused by the earthquake and tsunami that hit Japan.

In July, Toyota’s sales rose 26 percent and Honda’s shot up by 45 percent, compared to July 2011.

The top-selling car in the U.S. was the Toyota Camry, with 29,913 in sales, according to recent data, followed by the Honda Accord at 28,639, Nissan Altima at 26,602, Honda Civic at 25,004 and Toyota Corolla at 23,640. Meanwhile, Hyundai’s Sonata’s sales last month totaled 20,978, while the Elantra’s sales stood at 18,512.

The automaker is now also concerned that recent strikes of unionized workers in local plants may result in a supply shortage to overseas markets.

The number of parts made and shipped in Korea plunged 25.3 percent to 94,576 in July from 126,541 in June, according to the automaker.

Consequently, the number of cars Hyundai exported to the U.S. dropped to 27,101 from 36,209 and Kia also saw exports drop to 25,917 from 29,659.

During his trip, Chung met with Georgia Governor Nathan Deal and Senator Saxby Chambliss and thanked them for their support for the group’s business. He is also scheduled to meet with Alabama Governor Robert Bentley before returning to Korea. <The Korea Times/Kim Tae-jong>

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