Paradigm shift towards optimization for Software Defined Vehicles (SDVs) and technology developments
In a landmark move, Hyundai Motor and Kia’s transformed R&D Division has announced radical initiatives intended to become milestones for Software Defined Vehicles (SDVs) and new technology upgrades from vehicle-focused development.
The restructure aims to accelerate the electrification transition, SDV advancement and next-generation technology development, while enhancing new business competitiveness
Each technology team is to form the uniquely named Allianced Tech Organization (ATO) with a revamped R&D regimen to effectively respond to the rapidly changing mobility landscape and meet ongoing changes in global consumer demands. The synopses are as follows:
Pivotal Divisions
The Total Vehicle Development (TVD) Division is to be reorganized into vehicle classes to streamline new vehicle development of Hyundai, Kia, and Genesis brands and focus on advancing electrification.
The Vehicle SW (Station Wagon) Tech Unit will bring together software technologies and advance SDV development, including electronics, infotainment, autonomous driving and vehicle control capabilities.
The Mobility Engineering and Tech Acceleration (META) Tech Unit will lead the development of advanced technologies, including innovative next-generation products and platform technologies.
The Independent R&D Organizations and Design Centres for commercial vehicles, robotics, batteries, hydrogen fuel cells and design will report directly to the new Chief Technology Officer (CTO).
Critical Enablers
By establishing an R&D Organization that enables the timely development of innovative devices and services, Hyundai Motor and Kia are committed to leading the future mobility market where electrification and software capabilities are the key enablers.
To this end, Hyundai Motor and Kia have grouped together and elevated the areas directly related to vehicle development to enhance new vehicle development and secure quality in mass production. The companies also separated the next-generation innovative technology teams within the existing R&D Division as a stand-alone Tech Unit.
The revamped R&D Organization will be led by its new Chief Technology Officer (CTO). Every 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 will be regrouped to have their own development systems.
Key Top Appointments
As part of this Organizational restructure, Yong Hwa Kim, earlier Executive Vice President, who has been leading the R&D Division, was promoted to President and named the CTO. Kim will oversee the entire R&D Organization, while also taking the position of the Head of Vehicle SW Tech Unit.
In addition, Heui Won Yang, Executive Vice President, 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 organizational restructuring.
“The new R&D Organization will be fast and flexible, operating with the agility of a startup, and will enable us to lead in the rapidly changing mobility landscape,” affirmed Yong Hwa Kim.
“While the previous organization was focused on the efficient development of vehicles, the new dynamic structure will meet ongoing changes in global consumer demands and expands the organization to deliver aligned solutions in future mobility, electrification, software and robotics,” he continued.
Independent Focus
Under the new system, each Division, Tech Unit, and Centre will independently focus on their technology development, whereas for cases where collaboration is required, organizations can come together and separate as needed to perform flexibly, like a startup.
To build a dynamic R&D system that can flexibly respond to rapid changes in the external business environment, Hyundai Motor and Kia have opted for a major reorganization that completely transforms its perspective instead of making incremental changes.
The reorganization is focused on continuing the transition to electrification and software-centred development, strengthening capabilities to create next-generation technologies and securing future growth engines in new business areas. Based on these efforts, Hyundai Motor and Kia expect to accelerate their journey to become smart and sustainable mobility solution providers.
Total Vehicle Development (TVD) Division
The new TVD Division will oversee the overall process of new vehicle development, including electric vehicles (EVs). With the creation of the TVD Division, Hyundai Motor and Kia have elevated the organization responsible for product integration development to Division level with the aim of strengthening core capabilities in vehicle development.
Under this restructuring, 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 organizational structure will facilitate efficient new vehicle development at the brand and platform levels.
Within each unit, there is a dedicated Project Manager (PM) Organization overseeing product development for each model, supported by engineering design and test Centres reporting directly to them. This structure ensures a seamless and organic development process within each Tech Unit, preventing any interference between brands and vehicle classes.
Hyundai Motor and Kia are intensifying efforts to enhance EV development and production capabilities, ensuring top-tier competitiveness in electrification.
The EV Organization, including the Electrified Propulsion Engineering Design Centre and Electrified Propulsion Test Centre, now operates directly under the TVD Division, enabling agile decision-making and driving innovative technological advancements.
Vehicle SW Tech Unit
The expanded Vehicle SW Tech Unit, under the direction of the new CTO, 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, which previously consisted of the Electronics Development Centre and Infotainment Development Centre.
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. It will also work closely with the SDV Division and 42dot to successfully fulfill the Hyundai Motor Group’s SDV strategy.
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.
Mobility Engineering and Tech Acceleration (META) Tech Unit
META Tech Unit is an organization 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 decentralized organizations that promote advanced technologies and basic performance in the areas of electrification, chassis and body.
The new Mobility Tech Centre will be responsible for the development of future innovative technologies and mobility concepts as well as securing next-generation architecture technologies.
The newly established Vehicle Performance Tech Centre will be responsible for the mass application of outstanding technologies for high-performance vehicles as well as the proactive research and improvement of basic vehicle performance.
The Vehicle Architecture Development Centre has significantly strengthened its functions for architecture-based development, with areas such as development cost and virtual development also being integrated under the Centre.
Independent R&D and Design Centres
Hyundai and Kia have 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 businesses have been placed under the direct supervision of the new CTO.
These 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.
Revamped R&D Organization
In 2003, Hyundai Motor and Kia established an integrated division that brought together R&D functions that had previously been spread separately across the country to improve its R&D capability.
In the mid-2000s, when sales volumes accelerated rapidly, Hyundai Motor and Kia revamped the organization into a platform-based structure by vehicle type and class to better segment the development of a diverse product lineup, including global strategic vehicles.
The companies also conducted continuous reorganizational restructuring in 2012. The Division reorganized with the goal of strengthening basic vehicle performance and customer-centric values. In 2019, the companies established an architecture-based system structure to secure technological competitiveness, a corporate press communique concluded.
