Designed : Communications OCTO Inc.Published : June. 31, 2008Commercial Vehicle Export Planning Team

Register Date : March. 10, 2006Registered No. : 2008-APublisher : Mong - Koo Chung

Phone : (82-2) 3464-3192Fax : (82-2) 3464-3513Website : http://www.hyundai-motor.com

Hyundai Motor Company

We welcome your suggest ions & your comments . I f you have great s tor ies which are re lated to Hyundai , P lease feel f ree to e-mail Mr. W.H Kim : whk@hyundai-motor .com

Moving the Worldwith Quality

Meet The Hyundai Family HYUNDAI Newsletter 03

Cover Story : Eco-Friendly Hybrid Buses Hit the Streets of Seoul

Global News : Microsoft and Hyundai-Kia Automotive Group to Develop Next Generation of In-Car Infotainment New Technologies at 2008 Busan Motor Show

Special : Introducing New Heavy Duty Trucks for 2008Introducing Mohammed Yousuf Naghi Motors of Saudi Arabia

TRUCK BUSN e w s l e t t e r&

S u m m e r 2 0 0 8 V o l . 0 3 N o . 1 0

02_HYUNDAI Newsletter

On June 9th, an “eco-friendly bus development and

distribution business agreement ceremony” was

held with the city of Seoul. The agreement calls for

a total of 7,748 eco-friendly buses to be supplied to

the city of Seoul through 2018. The hybrid buses

offer an improvement of 10-15 percent in fuel

economy compared to regular buses resulting in

savings of 8 million won (about US$8,000) annually

per unit.

Hyundai signed the agreement to supply mild

hybrid buses with the city of Seoul and will actively

promote the development of eco-friendly bus

technology.

The ceremony was attended by Seoul City Mayor

Se-Hoon Oh, Gi-Choon Kim, Director of the Clean

Environment Agency and Hyundai Motor

Commercial Vehicle Division President Han-Young

Choi as well as other officials.

With the municipal authorities’ commitment to

distribute 7,748 eco-friendly buses over the next

ten years, Hyundai can invest aggressively into the

development of low

emissions technology

without worrying about

sales demand for such

vehicles.

Under the three-stage

program, Hyundai will

begin with the supply of

mild hybrid buses

starting this year and in

2011 will introduce full

hybrid buses. By 2013, zero-emission fuel cell

electric buses will be phased in.

Unlike a full hybrid, a mild hybrid bus features only

the partial application of hybrid technology

although it operates on the same operating

principle in that it minimizes fuel consumption as

the engine shuts off automatically when the

vehicle comes to a stop. The main advantage of a

mild hybrid system is that it costs just one-fifth the

price of full-hybrid system.

When braking, a full hybrid uses “regenerative

braking” to transform braking energy into stored

electricity which can then be later used for starting

or accelerating. However, a “mild hybrid system”

converts braking energy into an electric current

that is used to operate the engine cooling pump.

Because a mild hybrid bus offers improvements of

10-15 percent in fuel efficiency compared to a

diesel or CNG bus, it results in fuel cost savings of

between 5-8 million Won (US$5,000 ~ 8,000)

annually (based on annual driving of 100,000

kilometers).

Mild hybrid buses are also expected to contribute

to improved air quality because they emit 21

percent less CO and cuts hydrocarbon emissions

by 89 percent, compared to a diesel bus.

On the day of the official ceremony, Hyundai

handed over 2 mild hybrid city buses and plans to

deliver a total of 14 more units by the end of the

month.

President Han-Young Choi said, “Our company

would like to thank the city of Seoul for providing

great support in distributing environmentally

friendly vehicles including natural gas buses and

mild hybrid buses.” He also added, “Hyundai

Motor plans to do its best in developing and

supplying environmentally friendly cars that can

improve air quality and provide highly efficient

energy technology.”

The main guests, who attended the agreement

ceremony on that day, also had an opportunity to

take a brief ride in a mild hybrid bus after the

ceremony.

Hyundai Motor completed development of a mild

hybrid bus on April 12th, and has been test-driving

it on roads with the help of local bus fleet

operators.

Eco-Friendly Hybrid Buses Hit the Streets of Seoul

HYUNDAI Newsletter_03

Microsoft Corp. and Hyundai-Kia Automotive

Group (HKAG) entered into a long-term

agreement to co-develop the next generation of

in-car infotainment systems on May 6th, 2008.

Bill Gates, chairman of Microsoft and Euisun

Chung, president of HKAG were present as

Martin Thall, general manager of Microsoft’s

Automotive Business Unit, and Hyun Soon Lee,

president and chief technology officer of HKAG,

signed the agreement in Seoul.

Together, Microsoft and HKAG will deliver new

and innovative solutions based on the Microsoft

Auto software platform, bringing the future of in-

car technology to Hyundai-Kia drivers worldwide.

“These new systems will redefine consumer

experiences in the car,” Thall said. “Since the

spring of 2006, HKAG and Microsoft have been

sharing their vision for the future of in-car

technology. We’re now aligned to develop the

next generation of in-car infotainment systems.”

“HKAG’s strategic vision is to become a global

leader in automotive and information technology

convergence” Chung said, “the partnership with

Microsoft will form the foundation for achieving

that vision.”

The first product, a next-generation infotainment

system that provides voice-controlled connectivity

between mobile devices, will be introduced in the

North American market in 2010. It will further

apply to Asian and European markets, and expand

into multimedia and navigation devices. These

easy-to-use infotainment systems will allow

consumers to enjoy music in various digital

formats.

The next-generation infotainment systems are

comparable to mini-PCs. Even after product

launch, new functions can be added or upgraded

in the form of software program updates, an

innovation to existing in-car multimedia

technology.

The Hyundai-Kia Automotive Group’s adoption of

the Microsoft Auto software platform increases

Microsoft’s presence in the Asian car market and

enhances the global automotive business. The

engineering and marketing teams of Microsoft’s

Automotive Business Unit in Redmond, Wash.,

will be working directly with counterparts at

HKAG in Seoul to support this goal. Systems

powered by the current version of Microsoft Auto

are available in Fiat Auto Group vehicles in

Europe and South America and Ford Motor Co.

vehicles in North America.

In a related announcement, Microsoft and

Hyundai-Kia, along with the Institute for

Information Technology Advancement (IITA),

signed a memorandum of understanding (MOU) to

co-establish an automotive IT innovation center

with the goal of promoting innovation and

opportunities for Korean software and device

vendors in the global market. Hyundai-Kia will

invest $166 million over the next five years to

bring IT technology advancements into the car

and to develop new in-car services.

Hyundai-Kia will invest $166 million over the next

five years to bring IT technology advancements

into the car and to develop new in-car services.

Microsoft and Hyundai-Kia Automotive Group toDevelop Next Generation of In-Car InfotainmentNew partnership will globalize innovative in-car infotainment

C o v e r S t o r y G l o b a l N e w s

2

Motor[4Kw]

MagneticClutchPulley

MG[8Kw]

Inverter

DC/DC Converter 24v BatteryVericie cintrol unit

Inverter

Vericie cintrol unit

ENGINE

2

G l o b a l N e w s G l o b a l N e w s

fueled engines. Universe is equipped with amagnificent spoiler which adds a luxurious touch tothe exterior style and it offers all of the comfort andconvenience of a premium bus. Its top quality seats,32-inch LCD TV and luxurious interior materialsprovide passengers with the excellent riding comfortand convenience.

New Super Aero City Non-StepLow-Floor SENew Super Aero City Non-Step Low-Floor SE is atotal new city bus concept featuring an advancedexterior design executed in a luxurious style whichsurpasses all other city buses. Passenger carryingcapacity has been increased to 28 seats and it offersimproved illumination and ergonomically designedhand straps to enhance passenger comfort. The largeand spacious engine room provides service staff witheasy access and simplified maintenance. Itsuccessfully improves the driving convenience byapplying multi-display equipment, audio remotecontrol and flexible microphone.

HYUNDAI Newsletter_05

On the occasion of the 2008 Busan InternationalMotor Show, the Commercial Vehicle Division put onan impressive display of its design and advancedengineering technologies under the theme of“Confidence” with an exhibit of five vehicles thatincluded Trago 6x2 Tractor High-Roof, as well as itsnewest engines and diesel exhaust after-treatmenttechnologies in a display covering 800 square metersat BEXCO.

Trago 6X2 Tractor High-Roof The Trago 6x2 tractor is now available with a high-roof cab for a more magnificent exterior look andgiving drivers a more interior space to enjoy. TheHigh-Roof cab is designed to minimize air resistanceand yield fuel savings. On the inside, it provides extrastand-up room and a more comfortable living spacefor drivers with new and innovative storage options.The Trago tractor is equipped with the electronicallygoverned PowerTec engine which is the strongest in

its class. Its computer-controlled air suspensionprovides excellent ride comfort and, on the safetyside, EBS system apportions braking power amongthe wheels according to the vehicle’s payloads tooptimize braking performance and can decreasebraking distance by 15 percent. The ergonomic designof the driver’s seat, multi-functional display and audioequipment also guarantee excellent ride comfort andan entertaining driving experience.

Trago 25.5T DumpThe Trago 25.5T Dump is equipped with thePowertec 460 engine (Max power 460ps, Max torque

225kg m) which electronically controls the fuelinjection according to driving conditions. Itsergonomically designed driving space, dignifiedinterior, Euro-styled dash board, multi-functional airsuspension seat and multi-functional driveinformation display provide the perfect drivingexperience.

Mega Truck Double CabMega Truck Double Cab is equipped with Hyundai’sindependently developed G engine and exhaust after-treatment technologies. The system cuts fuel costsand enhances driving convenience by eliminating theurease supply procedure. The newly designed DoubleCab is 1,100mm longer than general cab in length,and its spacious back seat space offers 190mm moreof headroom. The 950mm widened door makes foreasier entry and egress. The Mega Truck Double Cabis a highly versatile unit best suited for application asa firefighting vehicle and other special purposevehicles.

Universe Express LNGUNIVERSE Express LNG bus is an advanced eco-friendly vehicle which utilizes liquefied natural gasand minimizes exhaust gas emissions. For economy-minded operators, it’s LNG engine reduces fuel costsand is made by Hyundai, a world leader in LNG-

04_HYUNDAI Newsletter

New Technologies at 2008 Busan Motor ShowTrago Tractor High-Roof equipped with advanced systems

Eco-friendly Universe Express LNG

New engines and low emission technologies

UAE Distributor, Juma Al Majid Est. recently won a contract to supply Emirates Transport with 300 school

buses (additional 163 units supplied last year). Emirates General Transport and Services Corp. is fully

owned by the UAE Federal Government and operates under an independent budget.

"The awarding of the recent contract to supply 300 school buses to Emirates Transport is a recognition of

the superior quality and reliable image of the Hyundai brand," said Isam Abu Nabah, President of Juma Al

Majid Est.

"What’s significant is that this order for 300 buses follows 163 units delivered last year, and was awarded

after a tough competition with other major bus brands. Moreover, the order was awarded by the number

most reputable transport provider in the UAE (Emirates General Transport Co.),” added Mr. Abu Nabah.

Juma Al Majid Est., a part of Juma Al Majid Group is the exclusive and sole distributor of Hyundai

passenger cars and commercial vehicles in the UAE, and is considered to be one the prominent business

groups in the Middle East. It has the state-of-the-art after-sales sevice facilities and more than eight

showrooms located in major emirates and cities of the UAE. Juma Al Majid Est. embraces a very

aggressive marketing strategy and is staffed with a highly professional sales team. It was able to make the

Hyundai brand into one of leading brands in this area.

"We, at Juma Al Majid Est., first approached Emirates General Transport in 1997. And for a period of over

nines years, we could not secure a major order from them, and only succeeded in 2006 , when we were

awarded a contract for 163 units of the Hyundai Super Aero City school bus and the entire quantity was

delivered in 2007. However the delivery of the new shipment of 300 units is expected to be completed

during the first quarter of 2009. We are expecting to be awarded more sizeable orders from Emirates

Transport this year and in coming years" according to Mr. Faisal Yaseen, Department Manager – Hyundai

Commercial Vehicles of Juma Al Majid Group .

Emirates Transport is entrusted with the responsibilities of organizing and conducting transport services,

vehicles maintenance, and supervision of operation, transportation consultancy or other related business in

the UAE.

Emirates Transport offers several services to its clients from different fields, establishments, social

associations and different society segments. The transportation services are undertaken by a large fleet of

buses that vary in size, type, specifications characteristics ensuring outstanding safety and are equipped

with different levels of comfort. Their commercial services include maintenance services, vehicles rental,

transportation service, haji and umrah transportation service, bus advertisements, universities' students

transportation service, vehicles washing and parking service.

300 UNITS School Buses Awarded by Emirates Transport

HYUNDAI Newsletter_07

The 9th International Trade Show ''COMMERCIAL

AUTO TRANSPORT/ COMTRANS 2008" hosted

by "Crocus Expo" International Exhibition Center

was held on April 26th in Moscow.

The COMTRANS show has become the most

significant event for the commercial auto market

and the most representative show in this sector

of business in Russia, CIS and Eastern Europe in

terms of the number of professional visitors,

exhibitors and exhibition area.

Hyundai was represented by Hyundai ComTrans

Rus, official distributor of its commercial vehicles

in Russia. The stand contained seven units based

on Hyundai chassis of different payload capacity

as well as the Universe luxury coach. Hyundai

ComTrans Rus works with the best Russian

upper-bodies manufacturers, such as “Mtsensk

Engineering Plant Kommash, Arzamas

Engineering Plant Kommash, “Chaika-Service”,

Vologda Engineering Plant, GrAZ and others.

Products of this effective cooperation were

exhibited during COMTRANS 2008: aerial lift

truck on Hyundai HD 65 chassis, vacuum lorry HD

78, Hyundai HD 120 stick crane, garbage truck

and milk tanker on HD 170 chassis, fuel tanker

and dump truck on HD 260 chassis.

"COMTRANS" really was the most significant

event for the automotive transport industry in

Russia, the fact confirmed by high appreciation

of the show's level on the part of practically all

its participants. As a result, due to great

confidence of the Organization of Automakers of

Russia (OAR) and International Organization of

Motor Vehicle Manufacturers (OICA),

"COMTRANS 2009" was included in the official

calendar of the automobile shows of the world.

06_HYUNDAI Newsletter

Hyundai ComTrans Rus particitates in COMTRANS 2008

The Director of the Russian Presidential Palace

and the president of Hyundai ComTrans Rus,

Hyundai’s Russian distributor, visited the Jeonju

plant on the 19th. The visit was arranged to

extend sales of mid- and large-size commercial

vehicles in the Russian market including the

Universe express coach. Yuriy Poletaev, Director

of Russia Presidential Palace, and Valentin

Gretchman, president of Hyundai ComTrans

Rus, showed their interest in the Universe and

the County, which were on special display for

the visitors.

By personally inspecting the bus and truck

production lines, the two visitors were able to

confirm for themselves the excellence of

commercial vehicles manufactured by Hyundai.

With the help of workers at the plant they were

able to get a first-hand experience of the

manufacturing and quality control processes.

They also tried some work themselves.

Throughout the tour, they expressed their

satisfaction with the quality of Hyundai buses

and trucks.

The Presidential Palace in Moscow currently

owns and operates a total of 70 Aero Express

and Universe buses. Orders for 20 units of

Universe were received. They are scheduled to

be shipped out sometime in June.

Russian Presidential Palace Director Visits Jeonju plant

Gildemeister, Hyundai’s distributor in Peru

celebrated the official launch of the Universe,

Hyundai’s luxury coach, to be used by travel agencies

and tourism operators in Cusco, the archeological

capital of South America on March 14th.

The invitees enjoyed exclusive cocktails and

catering on this happy occasion. Attendees

included tourism representatives as well as local

officials and transportation authorities.

Afterwards, the guests were invited to board the

buses to better appreciate the high degree of

comfort they offer. Finally they were taken to an

evening party to celebrate this special occasion

that will promote the development of tourism in

Peru.

Carlos Saavedra, manager of

Hyundai commercial vehicles, said

during the ceremony, “Our decision

to bring these buses to Peru is based

on a special analysis to satisfy the

needs of the tourism sector.

Undoubtedly, these buses will make

it easier to help promote Peru as a

great travel destination.”

UNIVERSE Launched in Peru

After signing a technical agreement with Hyundai on

24th March, 2008, Caparo India has taken the first step

to set up a plant to produce Hyundai Aero buses in

India. The plant, which is due to commence production

in April, 2009, will be located in Oragadam near

Chennai.

The ground breaking ceremony was held on 29th May

2008. It is expected that the building and subsequent

utility works for the plant will be completed towards

end of Jan. 2009.

The plant is going to be located on an area measuring

approximately 20 acres. There is a provision for future

expansion as well.

The plant will have separate body, paint, chassis and

trim lines to build the product. There will be a separate

test line as well to check the build quality of the

completed units. Initially the plant will employ a total

250 workers including 70 administrative personnel.

The chassis and components will be imported from

South Korea in knock-down state. All the exterior and

interior parts of the bus will be sourced locally. The

complete bus will be built using the above parts.

Caparo is looking to target bus operators with a careful

eye on overhead expenses and bottom line

performance. “We are offering a product on a par with

global quality standards. We believe our buses will

transport people in comfort and style. The buses will

have world class technology, looks and luxury” said

Dev Mukherjee, CEO, New Projects, Caparo India.

Apart from the CEO, the ceremony was also attended

by the executive director, civil construction, director

special vehicles and composites and other staff

members of Caparo India.

Caparo Breaks Ground for Indian Plant

G l o b a l N e w s G l o b a l N e w s

HYUNDAI Newsletter_0908_HYUNDAI Newsletter

The Commercial Vehicle Division held the 2008

Hyundai Truck & Bus Distributiors Convention at

the Indonesia Jakarta Ritz Carlton Hotel for three

days from May 21st to 23rd for CIS/Asian & Pacific

regions.

The event was attended by a total of 62 people

including Y.J. Suh, executive vice president of the

commercial vehicle export division as well as

presidents and sales and maintenance managers

from 16 distributorships. The main program

included presentations on export strategy and

products for the increased export of commercial

vehicles, the mid and long term strategy for special

purpose vehicles, sales and product strategy

announcements, special vehicle development

announcements, best distributor award ceremony,

success case presentation, and presentations on

DEP( Distributors Enhancement Program) of Saudi

Arabia’s Mohammed Yousuf Naghi Motors. The

afternoon program offered an opportunity to share

the best example through the tour of CKD plant of

Karinco Motors, Hyundai’s local affiliate.

In the opening speech, Executive Vice President

Y.J Suh said, “We will reach the commercial

vehicle global top 10 by selling 200,000 units by

2008 Truck & Bus Distributors Convention for CIS/Asia-Pacific

HMC CV Division carried out 2008 Sales

Academy for Central & South American and

Eastern European regions.

The Central & South America region

program was conducted in Costa Rica at

the Palecio Hotel from April 27th~30th for 13

distributors. Eastern European region

program was conducted in Jakarta,

Indonesia at The Ritz Carlton from May 19th

to May 21st for five distributors.

The program is a specialized training

program consisting of modules for the

purpose of establishing an exclusive

system for sales of commercial vehicles,

and focuses on the need for an exclusive

system for commercial vehicles,

understanding of customers, sales increase

skills and income management plan

through the utilization of key performance

indicators.

2008 Sales Academy for Central & South America / E. Europe

G l o b a l N e w s G l o b a l N e w s

2014.” Below is an excerpt from his speech,

which describes the strategy:

“First, we have been steadily increasing our

production capacity. We are already operating

two-shift production for buses and we will

gradually extend the two-shift formation to

medium duty trucks and to all remaining

models soon.

Second, Hyundai will continuously conduct

extensive market research and provide you with

CV vehicles well-adapted to the characteristic

of your region.

Third, with your strong and enhanced support,

we will establish an exclusive commercial

vehicle distributor network. This CV dedicated

network will be operated under a CV oriented

sales method, which will lead sales increase

and improve profits consequently.”

The participating dealers strengthened mutual

understanding and communication through the

conference which reviewed the sales strategies

of each segment of Hyundai Motor. The

convention was especially meaningful in that

the direct meeting between HMC and dealers

encouraged the dealers to take pride in their

company and boosted their sales motivation by

sharing the mid and long term vision for

commercial vehicles.

Hyundai’s new lineup of heavy duty trucks

featuring refreshed exteriors and other

improvements will be introduced in

overseas markets starting from July 2008.

Aerodynamics on the new models have been

tweaked to reduce air resistance. Special

attention has been paid to cab

aerodynamics as well as the design of the

headlamps and turn signal indicator lamps.

Stronger lighting performance (from 30,000

lux to 64,000 lux) has been made possible by

the application of MFR (multi face

reflector) headlamps until recently

used exclusively on premium

passenger cars.

The air intake was redesigned to a

high mounted snorkel-type intake.

And the air intake performance was

improved by increasing the size of the air

cleaner. The clean and replace cycles for the

air filter were dramatically extended. Driving

pleasure was enhanced by increasing the

volume of the air springs: (front: 0.73 liters

to 1.4 liters; rear: 0.55 liters to 1.3 liters)

The parking brake was improved from the

existing on-off type to a 3-stage gradual

type so that it can be used as a brake assist

system in case of breakdown. In the case of

tractors, the parking brake is also designed

to function as a trailer brake, for greater

convenience and stability.

Introducing New Heavy Duty Trucks for 2008

The newly introduced HD270 Dump-15m3 is

a large capacity 6x4 dump whose capacity

has been increased from 10m3 of the

existing HD270 Dump, in order to cope with

the market for large capacity dump trucks

which are increasingly in demand in the

overseas construction market.

The HD270 Dump-15m3 is being reworked

by a Hyundai-appointed OEM, a special

purpose vehicle maker. The OEM takes

existing 6x4 HD270 models produced by

Hyundai at its Jeonju plant and converts

them to 15m3 tipper units.

The rework process involves welding and

increasing the deck height of the 10m3 deck

by 455mm. After coating work, the vehicles

are ready for delivery.

The loading capacity of the HD270 Dump-

15m3, which is delivered after the rework

process, increases from 15 tons to 20 tons.

The improvement helped the HD270 Dump-

15m3 to gain equal footing with its

competitors in the 6x4 dump market in

terms of deck volume and load capacity.

The new HD270 Dump-15m3 with increased

deck height is capable of meeting

customers’ needs in the dump market,

which pushes for bigger capacity, with

flexible deck height. The warranty period

will be the same as the current

specification, 6x4 HD270 15 ton Dump.

Because the HD270 Dump-15m3 is mounted

with 12R22.5 tires as a basic specification,

which is an option specification in the

current HD270 Dump, it offers excellent

vehicle stability. Because 11.00x20 tires are

applied as a minus option upon customers’

request with a condition of reducing loading

capacity and total weight by 2 tons, choices

made by various customers are maximized.

With only minimum rework, the HD270

Dump-15m3 maximizes various needs and

the economic efficiency for customers in the

large capacity 6x4 dump market where

overseas demand is high.

New HD 270 Dump -15m3

Special Vehicles

FrtAxleCapa Rr

StdTire

Opt

MAX G.V.W

HD270 Dump HD270 Dump -15

10 15 (Dedc size 4840X230X1370)

15 tons

6.3 tons 6.5 tons 7 tons

20 tons 18.5 tons

D6AC(Euro 1&2)

D6AB(Euro 3)

D6AC(Euro 1&2)

D6AB(Euro 3)

11.00X20

11.00X20

11.8 tonsX2 13 tonsX2 11.8 tonsX2

12R22.5

12R22.5

29.5 tons 29.7 tons 32.2 tons 30.6 tons

Current Specification

Model Name

Deck Capacity

Pay Load

Engine(emission regulations)

Specification in Development

G l o b a l N e w s G l o b a l N e w s

HYUNDAI Newsletter_1110_HYUNDAI Newsletter

Brief Specification

G l o b a l F a m i l yG l o b a l N e w s

1. Properties of Brake LiningsBrake linings is made of a variety of organic compounds. As you can see from the graph, the life span of the brake lining is in inverse proportion to temperature. It also

shows the property of lining: When the temperature increases to a certain point, the life span of the lining begins to deteriorate at an accelerated rate.

1) Thermal Properties of Lining MaterialsVarious materials of brake lining are combined and held together with a special chemical bond. When the temperatureof the lining rises to a certain point, the bonding force weakens and the life span of the lining deteriorates rapidly.

2) Friction Property of LiningAt normal operating temperature, high friction can be maintained in accordance with the function of the brakingmaterial, and the lining delivers proper braking performance. However, if the lining temperature exceeds 250 ,braking performance of the lining deteriorates due to a change in material properties.

In order to maintain high performance and maximum life span of the brake lining, the driver must be sure the liningtemperature stays cool enough at all times.

3. Efficient Ways of Using BrakeDriving conditions and the driving habits of the driver can make a big difference inthe life span of the lining.

1) Severe damage to the lining and brake drum can occur when vehicle is brakedabruptly, especially when the vehicle is overloaded or slowing down from very highspeed.

Minimize brake usage by observing the maximum cargo load limit, the local

speed limit and by maintaining a safe distance from the vehicle ahead.

2) Abrupt braking at high speed and frequent use of service brake on downhill roadscan cause deformation of lining and drum, and it can result in brake judder, earlywear out of your brakes and tires.

While decelerating, use auxiliary brakes to slow down the vehicle as much aspossible, and use service brake as a final step to stop the vehicle completely.

2. Auxiliary Brake System-Exhaust brake : Decreases engine rotation with friction created by blocking air flow in the engine intake/exhaust

manifolds.-Jake Brake : Decreases engine rotation with friction created by controlling engine exhaust valve. Jake brake is

applicable on Powertec engine found on heavy duty trucks and buses.-Retarder : Retarder system is installed on transmission and it controls braking force by decreasing the rotation speed

of the propeller shaft.- Deceleration Ability of Auxiliary Brakes

In its capacity as the sole truck and bus

distributor for Hyundai in the Kingdom of Saudi

Arabia, Mohammad Yousuf Naghi Motors has

the pleasure to introduce Hafil Bus Transport,

one of its largest and most important flee

customers which is alos considered to be one

of the largest bus transport companies in the

Middle East.

With a fleet of over 6500 buses, all of which

are Hyundai and Kia, Hafil is involved in the

following Bus transport businesses: hajj, omra,

school, cross country, touring and specialized

transport.

StatusEstablished in 1999, after acquiring the license

to be a Hajj Transport company, Hafil has

managed to raise its fleet from 900 Hyundai

Aero Space LD buses in the first half of

1999, to over 6500 buses as of April

2008. The fleet is mix of Hyundai

County, Aero Town, Aero City 540, Aero

Space LD, Aero Express, and Universe as

well as other Kia buses. Hafil’s operations

cover all of Saudi Arabia and bus transport links

with neighboring countries.

Among other 16 hajj bus transport companies

currently operating in Saudi Arabia which

operate a total of over 14,650 buses natiowide,

Hafil‘s fleet is considered to be the single

largest in Saudi Arabia and the Middle East

region.

Purchasing motive for HyundaibusesHyundai’s suitable specs, high quality

measures, affordable prices, value for money,

economic running cost, practicality, high

endurance, reliability, unmatchable after-sales

service support and the commitment of Hyundai

to its customers have been proven by the

historical record over the last ten years. These

were definitely the factors in the mix behind

Hafil’s purchasing decision of Hyundai buses.

Hafil’s operation has never failed because of

the absolute reliability of Hyundai buses as

well as its after-sales service and parts supply

network.

Management strategyDiversification of the fleet, pioneering the

specialized VIP Omra, the Cross Country and

VIP touring, with more focus on school

transport and intra-city transport business,

including creating new demand in other bus

transport fields by offering unique services,

defines Hafil strategies over the years that

have passed since it was established and will

continue for years to come.

Overseas model fleet

Introducing Hafil Transport Est. Bus fleet operator of Saudi Arabia

Efficient Use of Brake SystemBefore Service

HYUNDAI Newsletter_1312_HYUNDAI Newsletter

Rat

e of

wea

r

Lining Temperature

Lining temperature vs.Wear out(%)

1

100 200 300 (℃)

23

4

5

Fri

ctio

n

Lining Temperature

Lining temperature vs.Friction(%)

20

100 200 300 (℃)

40

60

80

100

(℃)

Running Time (Minutes)

Exhaust brake effect

50

2010 30 40 50 60

100

150

200

250

No Exhaust brakeExhaust brake

In this issue, we introduce efficient ways of using the brake system. Efficient use of the brake system will promote safer driving of your vehicle and it will also help to

extend the life span of the brake linings which will save you money on vehicle maintenance.

Model Exhaust JAKE RetarderDeceleration 0.05g 0.08g 0.15g

Defected brake parts dueto the excessive heat

Naghi Motors in BriefIn 1997, M.Y. Naghi Motors was appointed

distributor for heavy commercial vehicles

including large buses

for the Kingdom. Their

capabilities were

already well-proven

with their successful

penetration of hajj

bus market which saw

them sell 3,500 large buses in less than three

years. The buses carry huge number of visitors

who come to the Kingdom to observe the hajj,

or pilgrimage. Naghi Motors’ ability to provide

quality products and personalized after sales

service has been instrumental in its rapid and

successful growth. A nation-wide network of

sales and after sales facilities backed by full

financial and technical resources ensures a

never ending commitment to customer

satisfaction.

Independent OperationBy establishing exclusive outlets

nationwide—11 in total—including a branch

in Jeddah which has a 2,000m square

showroom have on display the Mighty, County

as well as heavy duty trucks and Universe bus,

Naghi Motors serves a model distributorship

for Hyundai’s bus and truck division. The

Jeddah facility covers 4000m square and

includes a reception desk, customer lounge

consultation desk, manager’s office, customer

parking lot, workshop area and parts

warehouse. All exterior and interior signage is

in keeping the corporate brand and showroom

identity manuals.

The operation is under the direction of Khalil

A. Hebshi who previously served as the

representative for Hyundai’s passenger car

operations in the Kingdon but who earlier this

year was appointed as the new head of CV

business. He is supported by Director Y.S.

Song and Nabil K. Riyad who have 30 years of

combined experience in the bus and truck

field.

Naghi Motors employs the full range of

promotional and marketing tools at its

disposal participates in a variety of different

commercial vehicle motor shows, runs

advertising in local media and operates its

own homepage dedicated exclusively to its cv

business. In addition, Naghi Motors offer a

regular training program for its sales staff and

dealers to improve their knowledge of the

products and after-sales service. The training

curriculum is set at the beginning of year.

The Link between DEP and Sales

Sales performance of 2000 – 2008 1Q

Thanks to an aggressive sales strategy and the

creation of a stand-alone dedicated CV sales

organization that is run separately from the

Hyundai passenger car business, Naghi Motors

was able to post remarkable sales results in the

first quarter of 2008 almost equaling the annual

sales volume of previous years.

Future Sales Management To achieve its lofty sales targets , Naghi

Motors will implement the following by 2012:

1) Improve customer awareness and build up

the Hyundai brand image by strengthening

advertising.

2) Expand the three current 3S (sales, spares,

service) outlets to eight outlets countrywide

and appoint sales specialists with engineering

background solely dedicated to heavy duty

truck and large buses (one for truck, one for

bus) per each 3S outlet.

3) Expand special incentive program and offer

aggressive financing with the aim of increasing

the number of selective fleet customers from

five this year to 25 per year by 2012. At the

same time, increase the number of

demonstration vehicles from the current two to

eight in 2012.

4) Develop a specialized organization by

increasing the number of product engineers and

current market coverage. Expand coaching,

training, and motivating the sales force and

current number of sales engineers.

5) Develop training programs for sales staff to

enhance salesmanship skills and product

knowledge by extending average training

times of staff and reinforcing the Fleet

Customer Educational Program.

6) Apply tighter measures to ensure all goals

are met for Key Performance Indicators,

Customer Satisfaction Index and Dealer

Enhancement Program.

Introducing Mohammed Yousuf Naghi Motors of Saudi Arabia

SaudiArabia

Yemen

Oman

Kuwait

United ArabEmiratesYanbu

Makkah

Al Madnah

Jiddah

Ar Riyad

Ad DammamDubai

ShirazKerman

Ahvaz

Al Basrah Abadan

Masqa

Sana’a

Buraydah

Aba SaudJizan

Al Hudaydah

Abha

Tabuk

Buraydah

BandarAbbas

Bushehr

Sirjan Bam

At Taif

Al Mukalla

Salalah

Al HofutBahrain

Qater

2S

1S

3S

1S

1S

1S

3S

DIR.1S

DIR.1S

3S

2S

Finance Logistics Marketing Sales A/S

Branch Sales HDT Sales Regional Sales

Managing Director

L/Bus Sales

HYUNDAI Newsletter_1514_HYUNDAI Newsletter

G l o b a l F a m i l yG l o b a l F a m i l y

Mid & long term business Plan

2008 M/S 2012 M/S

MCV

HCV

Total

950

250

1,200 8% 1,375 1,600 2,000 2,500 13%

1,000

375

1,100

500

1,250

750

1,500

(unit)

1,000

2009 2010 2011

Sales performance of 2000 ~ 2008 1Q

2000 2002 2001 2004 2003 2006 2005 2008 1Q 2007

529 369589 630651 456345 432495

(unit)

In this issue we offer a profile Naghi

Motors, HMC’s bus and truck distributor for

Saudi Arabia. As a result of participating in

Hyundai’s Distributor Enhancement

Program, Naghi Motors has set up a

separate, independent sales network for

CVs which has paved the way increasing

sales and enhanced the Hyundai brand

image.