Introducing "Reform for customers . innovation for humanity" Hyundai Motor Group has set itself a target to be among the top five automakers in the world by 2010 with an annual production of 5 million cars. By boosting its mid- and long-term strategies focused on confidence, on the spot and transparent management, Hyundai Motor will advance into the big league as one of the world's top leading automakers within the next five years, with domestic car production of 3 million units and overseas output of 2 million units. To this end, Hyundai Motor is pursuing its five mid- and long-term strategies; raising product competitiveness, localization strategy, improvement of brand value, environmental management system and reform toward global management, Chung Mong-koo, chairman of the Hyundai Automotive Group, said recently. The automotive group ranked seventh in automobile sales in the world in 2004. The group, led by Hyundai Motor, outperformed global competitors, such as Nissan Motor (eighth in 2004), Honda Motor (ninth), Renault SA (10), BMW Group (14), Shanghai Automotive Industry Corp. (18) and Volvo Truck Group (24). It is aiming to overtake PSA/Peugeot- Citroen (sixth) and DaimlerChrysler AG (fifth) within several years by making the best of the potential of its new plant in Montgomery, Alabama, which it set up in 2005. The carmaker has captured more than 3 percent of the vehicle market in the United States and the market share will likely increase further, buoyed by the Alabama plant. As its affiliate company Kia Motors also saw its U.S. market share rise to an alltime high of about 2 percent. It means that one in 20 U.S. consumers now drive cars from Korea's representative automotive group. Last May, Hyundai Motor began a new chapter of Korean automobile history by opening a manufacturing plant in Alabama, becoming the first Korean auto firm to set up a factory in the center of the car industry. The automaker spent $1 billion on building the factory, the largest investment ever to be made by a Korean firm in a single foreign location. Eleven auto parts and steel plate makers, including Hyundai Mobis and INI Steel, have set up operations in the city, enabling Hyundai Motor to localize key manufacturing processes for its flagship passenger and sport utility vehicles (SUVs). Along with a Hyundai car design center set up in California and an automobile technology institute in Michigan, the plant is helping Hyundai reposition itself as a key player in the United States. Meanwhile, Hyundai Motor exported its 10 millionth car on July 28 in 2004, reaching the landmark 28 years after Hyundai shipped six Pony hatchbacks to Ecuador in June 1976. Hyundai now exports to 193 countries, compared with 38 in 1980, with over 5,000 dealerships worldwide. Korea's top carmaker held a ceremony at its largest domestic plant in Ulsan to celebrate the shipment of its 10 millionth export, a Tucson compact sport utility bound for France. "We will do our best to increase exports by continuing to improve product quality and to develop new technology," Kim Dong-jin, Hyundai's vice chairman, said in a speech to around 200 employees, suppliers and journalists. It took Hyundai 22 years to export 5 million vehicles but just 5 1/2 years for another 5 million exports, making it second to Japan's Toyota Corp. in reaching the 10 million levels. Hyundai attributes its export performance to small models such as the Excel, Elantra and Accent subcompacts, which account for nearly 60 percent of its total auto exports. But the company has been increasing its overseas shipment of larger vehicles, including Sonata mid-size sedans and Santa Fe sport utility, to compete its foreign rivals in a more lucrative segment. Despite sluggish domestic consumption, Hyundai Motor sold a total of 1.67 million cars, including the biggest annual exports of 1.12 million units, in 2004, posting the total sales of 27.4 trillion won. In particular, its sales of New EF Sonata and Santa Fe in the U.S. market increased by 30.2% and 10%, respectively, in 2004 from a year earlier, casting bright prospects for the successful operation of its Alabama plant producing the follow-up models of the vehicles. To join the world's top five automakers, the company also suggested the mid- and long-term vision, titled the "reform for customers-innovation for humanity," which calls for improvement of quality and services, among other things. Under the vision, Hyundai Motor set the year 2005 as the year for global management, accelerating its efforts to expand the overseas markets, especially in the U.S., west European countries, China and India. To actively attack the overseas market, Hyundai Motor is activating functions of local research centers. In particular, it plans to develop the existing research centers in the U.S. and Germany into a state-of-the-art automobile research center armed with comprehensive motor development functions. In the production sector, Hyundai Motor operates a total of five auto factories in Korea, including its Ulsan Automobile Plant boasting of its top annual car production capacity with 1.6 million units worldwide. It places priority on production of topquality passenger cars, recreational vehicles (RV), sports utility vehicles (SUV), small-size commercial cars, and mini-cars to secure superiority in competition with major foreign rivals. In the overseas sector, Hyundai Motor plans to actively foster its India-based factory as a global foothold to advance into other overseas markets. Along with this, its Turkey automobile plant now producing 60,000 vehicles, including Grace and Starrex, is playing a key role for Hyundai Motor to advance into the European and Middle East regions. Besides, the Alabama plant, which went into commercial operation in May this year in earnest, will prevent the U.S. trade pressure and long-term exchange risk, while upgrading the image of Hyundai Motor cars produced by Americans in North America, a Hyundai spokesman said. China, which has emerged as the second largest automobile market with stiff sales competition following the U.S., is an important spot of global management that Hyundai Motor must preoccupy. Related to this, Hyundai Motor and Beijing Motor jointly established Beijing Hyundai Motor Company in December 2002. Beijing Hyundai Motor Company, which produces Avante XD and Tucson, is planning to expand its production capacity to 600,000 units in 2007. As overseas plants of Hyundai Motor have enjoyed outstanding growth through thorough localization strategy and persistent quality control, the motor company is expected to attain its overseas production target of 2 million units in 2010 without any difficulty. Kia Motors also won $10 billion export tower award, gaining popularity among the world's auto consumers. With the company's superior performance on increasing exports, Hyundai Mobis also received the Gold-tower Industry Award at this year's Trade Day, posting $3 billion in exports.