PART 1: HYUNDAI MOTOR COMPANY REPORT
Products and Brand:
Hyundai Motor Company (hereafter, HMC) formed in 1967, was a part of the South Korean Chaebol - the Hyundai Group. In the last four decades, HMC managed to establish itself as a most prominent automaker producing reliable, technically sound and stylish automobiles and commercial vehicles.
Headquartered in Seoul, South Korea, HMC opened a new chapter in the history of the Korean automotive industry by exporting its first proprietary model, the Pony, to Ecuador in 1976. In the 1980’s, HMC exported the Excel to the U.S. In 1991, HMC achieved technological independence by developing the first propriety engines and transmissions. Currently HMC has 78,539 employees around the world working in eight manufacturing plants, 12 R&D centers, 5,300 dealerships and sales companies, and CKD plants. As of 2010, HMC established as a global automaker that produces more than three million high-quality passenger and commercial vehicles for sale in 190 countries each year.
By enhancing Brand image through high quality products and unique marketing initiatives, once again, HMC is the first and the only Korean automaker to be listed in the Top 100 Global Brands in 2010 by Business Week and Inter-brand since it first entered the Top 100 Global Brands in 2005.
Revenue and Profit:
In spite of the persistent uncertainties in recent business conditions, HMC achieved some significant milestones in automaker markets in the past few years. In 2009, HMC succeeded in selling 2.4 million vehicles overseas, a meaningful accomplishment considering the global economic crisis. In particular, Elantra, Genesis, Genesis Coupe, Santa Fe, and Veracruz were recognized as the best sales and safest cars in their categories by leading agencies and the media in the US, also, HMC achieved cumulative export sales of 1 million cars in Africa. HMC pledges continuous growth by maximizing brand value in developed markets and expanding its sales capacity in emerging markets.
In 2009, HMC posted 31,859 billion KRW in sales. Operating profits increased by 19% to 2,235 billion KRW. The operating profit margin increased by 1.19% to 7.02%. Net profit surged by 104.5% to 2,962 billion KRW and HMC’s total assets increased by 12% to 22,029 billion KRW. Despite increased sales and profits, tax payments to the central and regional government decreased due to corporate tax cuts and increased tax exemptions associated with increased R&D investments.
Sales (in billion KRW)
Operating Profit (in billion KRW)
Net Profit (in billion KRW)
Operating Profit Margin (%)
EBITDA (in billion KRW)*
Total Assets (in billion KRW)
(Source: 2010 Sustainability Report, Based HMC operation result only, * EBITDA =EBIDTA : Earnings before interest, taxes, depreciation and amortization)
In 2009, HMC jumped to third on the list of Fortune Korea Top 20 Korean companies and generated 91.46 trillion won in revenue, up 14.7 percent from the year 2008 and 2.97 trillion won in net profit, up 246.7 percent (Source: www. koreatimes.co.kr).
In 2010, HMC announced global sales of 3,612,487 units (domestic plants: 1,730,682, overseas plants: 1,881,805). Sales revenue rose 15.4 percent to 36.8 trillion won from a year earlier as the company sold more cars and improved its product mix, while operating profit also rose 44.4% to 3.2 trillion won. Net profit increased 77.8 percent to 5.3 trillion won. Hyundai aims to increase sales and enhance brand image in 2011 by introducing new models specifically designed for local...
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