Electrification, software and robotics division created as part of new flexible R&D clusters
By Neil Dowling on 2nd July 2023 News, Technology
It will separate new technology – including electrification, software and robotics – into an independent allied tech organisation (ATO) which will operate apart from the vehicle development process.
The change is seen as following global trends in large car-makers of separating divisions to create efficiencies. Ford, for example, has broken its company into three units for ICE, EV and commercials.
Hyundai Group president and CTO Yong Hwa Kim said the new R&D organisation “will be fast and flexible, operating with the agility of a start-up, and enable us to lead in the rapidly-changing mobility landscape.”
“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. When collaboration is required, the groups can come together and separate as needed to perform flexibly; similar to a start-up.
Hyundai Group said it aimed to have the flexibility to “respond to the rapidly changing global automotive industry, advance the transition to electrification and accelerate the development of Software Defined Vehicles (SDVs).”
“The new R&D organisation will transform from a centralised structure focused on vehicle development to an independent Allianced Tech Organization (ATO),” it said.
The new Total Vehicle Development (TVD) division will develop models by classes to secure competitiveness in new vehicles, including EVs.
The TVD division established the Genesis Development tech unit and Vehicle Development tech unit 1 for multipurpose vehicles and compact cars, as well as the Vehicle Development tech unit 2 for medium to large-sized vehicles. This new organisational structure will facilitate efficient new vehicle development at the brand and platform levels.
Within each unit, there is a dedicated project manager organisation overseeing product development for each model, supported by engineering design and test centres reporting directly to them.
The company said that this structure ensures a seamless and organic development process within each tech unit, preventing any interference between brands and vehicle classes.
“It also facilitates clear differentiation in vehicle concepts, ultimately enhancing the competitiveness of Hyundai Motor and Kia’s products,” the company said.
“Moreover, this collaborative environment will foster the growth of automotive engineers specialising in cutting-edge convergence technologies.”
The company said it was also “intensifying efforts” to enhance EV development and production capabilities. It will now have dedicated research organisations focused on all-electric driving range and EV safety.
“Hyundai Motor and Kia have high expectations that this organisational restructuring will lead to substantial improvements in the completeness and speed of new model development, with a particular focus on EV line ups,” the company said.
“The expanded Vehicle SW tech unit seeks the most efficient way for Hyundai Motor and Kia to transition to an SDV system.
“To ensure consistency in software development and build a more robust development system, Hyundai Motor and Kia added the autonomous driving centre, vehicle-control development centre and digital engineering centre to the Vehicle SW tech unit.
“By bringing together these software-related organisations under one tech unit, the company expects organic collaboration between organisations and a concentration of human and material resources.”
The Vehicle SW tech unit will carry out research and development on the electronic architectures and integrated control strategy for Hyundai Motor and Kia models.
Hyundai Motor and Kia are also developing software and related devices from the perspective of a holistic user experience (Holistic UX), where mobility devices are connected to smartphones under one operating system and a vast amount of mobility data and AI technology can understand user intent so that all experiences are naturally connected.
The tech units and centres will operate independently, conducting research and development in their respective fields while also nurturing organic collaboration with other departments as needed, with the aim of enhancing competitiveness.
The revamped R&D organisation will be led by its new chief technology officer (CTO), with each Total Vehicle Development (TVD) division, Vehicle SW tech unit, and Mobility Engineering and Tech Acceleration (META) tech unit, as well as new business and design centres being reorganised to have their own development systems.
During this organisational restructure, executive vice president Yong Hwa Kim, who has been leading the R&D division, was promoted to president and named CTO. Mr Kim will oversee the entire R&D organisation, while also being the head-of-vehicle SW tech unit.
In addition, executive vice president Heui Won Yang, who previously held the position of head of Total Vehicle Development tech unit, was named to the head of TVD division, securing continuity in R&D amid the extensive organisational restructuring.
By Neil Dowling
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