Supplying Hyundai-Kia

SupplierBusiness

CONTENTS CONTENTS ................................................................................................................... 3

LIST OF FIGURES AND TABLES ..................................................................................... 5

OVERVIEW ................................................................................................................... 6

Introduction ............................................................................................................................................. 6 Overall sales ............................................................................................................................................. 6 Financials ................................................................................................................................................ 7

PRODUCT AND PLATFORM STRATEGY ......................................................................... 8

Strategy overview ...................................................................................................................................... 8 Major model programmes .......................................................................................................................... 9 Platform strategy..................................................................................................................................... 12 Major platforms ...................................................................................................................................... 13 Component sharing, standardisation and carryover .................................................................................... 15 Volume planning .................................................................................................................................... 16

PRODUCTION STRATEGY ........................................................................................... 17

Production strategy overview .................................................................................................................... 17 Manufacturing network & footprint .......................................................................................................... 17

ASIA ............................................................................................................................................18 South Korea ........................................................................................................................................... 18 China .................................................................................................................................................... 19 India and Pakistan ................................................................................................................................. 20 Russia ................................................................................................................................................... 20 ASEAN ................................................................................................................................................. 21

NORTH AMERICA .....................................................................................................................21 United States .......................................................................................................................................... 21 Canada .................................................................................................................................................. 23

AFRICA AND MIDDLE EAST ....................................................................................................23 EUROPE......................................................................................................................................23

Czech Republic ....................................................................................................................................... 23 Turkey ................................................................................................................................................... 24

SOUTH AMERICA ......................................................................................................................25 Brazil .................................................................................................................................................... 25

Internal supply network ........................................................................................................................... 27 Modularisation strategy ........................................................................................................................... 28 Supplier parks ........................................................................................................................................ 29 Cluster of reference .................................................................................................................................. 32 Manufacturing strategy and efficiency plans............................................................................................... 34

PURCHASING STRATEGY ........................................................................................... 35

Purchasing strategy overview .................................................................................................................... 35 Levels of vertical integration and outsourcing ............................................................................................. 35 Purchasing organisation .......................................................................................................................... 36 Purchasing offices .................................................................................................................................... 37 Key Offices .................................................................................................... Error! Bookmark not defined. Key purchasing personnel ........................................................................................................................ 38 Purchasing spending ............................................................................................................................... 39

SUPPLIER SELECTION................................................................................................. 40

Supply base development ......................................................................................................................... 40 Major and strategic suppliers .................................................................................................................... 41 Openness to new suppliers ........................................................................................................................ 42

Supplying Hyundai-Kia

© 2012 IHS Global Limited 3

Supplier selection criteria and biases.......................................................................................................... 43

GLOBAL SOURCING ................................................................................................... 45

Approach ............................................................................................................................................... 45 South Korea ........................................................................................................................................... 45 United States .......................................................................................................................................... 46 Czech Republic ....................................................................................................................................... 46 Russia ................................................................................................................................................... 47 India ..................................................................................................................................................... 48 China .................................................................................................................................................... 48 Turkey ................................................................................................................................................... 49 Brazil .................................................................................................................................................... 49

PRICING POLICY ........................................................................................................ 51

Price reduction plans and practices ............................................................................................................ 51 Payment terms........................................................................................................................................ 51 Cost-reduction programs .......................................................................................................................... 51 Raw material price management .............................................................................................................. 52

QUALITY MANAGEMENT ........................................................................................... 53

Quality level ........................................................................................................................................... 53 Quality management system .................................................................................................................... 53 Integration into product development ........................................................................................................ 54 Management of sub-suppliers ................................................................................................................... 55 Supplier awards ...................................................................................................................................... 55

TECHNOLOGY ........................................................................................................... 57

Technological positioning ........................................................................................................................ 57 Areas of focus .......................................................................................................................................... 57 R&D spending ........................................................................................................................................ 58 R&D organisation .................................................................................................................................. 58 Access to supplier technology .................................................................................................................... 59 Approach to electrification and fuel cells .................................................................................................... 60 Management of vehicle development.......................................................................................................... 61

INTERVIEW: JAISON YANG, GLOBAL PURCHASING MANAGER, HYUNDAI EUROPE .... 62

OEM-SUPPLIER SURVEY RESULTS ............................................................................... 69

Introduction to the SuRe index ................................................................................................................. 69 Methodology .......................................................................................................................................... 69 Executive summary ................................................................................................................................. 70 Profit potential........................................................................................................................................ 72 Organization .......................................................................................................................................... 73 Trust ..................................................................................................................................................... 74 Pursuit of excellence ................................................................................................................................ 75 Outlook.................................................................................................................................................. 76

SWOT ANALYSIS - SUPPLYING HYUNDAI-KIA ............................................................. 78

GLOBAL FOOTPRINT .................................................................................................. 79

FORWARD MODEL PROGRAMME ............................................................................... 81

MAJOR SUPPLIERS – HYUNDAI –KIA ........................................................................... 87

Supplying Hyundai-Kia

© 2012 IHS Global Limited 4