Hyundai and Kia Revamp R&D for EVs and SDVs

Hyundai Motor Company and Kia Corporation have announced a significant reorganization of their joint research and development (R&D) organization to adapt to the rapidly changing global automotive landscape. The transformation focuses on expediting the shift to electrification, advancing Software Defined Vehicles (SDVs), and fostering new business competitiveness.

The new R&D structure, called the Allianced Tech Organization (ATO), represents a departure from the centralized approach to vehicle development. Hyundai and Kia have elevated vehicle development-related areas to enhance new vehicle creation and ensure mass production quality. Additionally, advanced technology teams have been separated into a standalone Tech Unit.

Yong Hwa Kim, President and CTO, emphasized the agility of the new R&D organization, likening it to a startup. He highlighted its responsiveness to evolving consumer demands and its commitment to future mobility, electrification, software, and robotics.

Under this reorganization, each division, tech unit, and center will independently focus on technology development, promoting flexibility and collaboration as needed, similar to startup dynamics. This approach ensures a dynamic response to external business shifts and marks a transformative perspective shift.

The Total Vehicle Development (TVD) Division will oversee the entire new vehicle development process, including EVs. The restructuring establishes specialized units within TVD, promoting efficient vehicle development based on brands and platforms. Project Managers (PMs) oversee individual models within each unit, enhancing organic development without interference between brands or vehicle classes. This structure enhances product competitiveness, supports clear differentiation, and fosters expertise in cutting-edge technologies.

The EV organization, responsible for electrified propulsion, will operate directly under the TVD Division. This alignment accelerates decision-making and technological innovation for EVs. Dedicated research units focus on electric driving range and EV safety, speeding up the development of crucial electrification technologies.

The Vehicle SW Tech Unit, expanded to include an Autonomous Driving Center, Vehicle Control Development Center, and Digital Engineering Center, drives the transition to SDVs. By centralizing software development efforts, Hyundai and Kia expect seamless collaboration and resource concentration.

The META Tech Unit, comprising various centers, leads the development of next-gen products. It consolidates organizations promoting advanced technologies in electrification, chassis, body, and vehicle performance. Additionally, Hyundai and Kia maintain independent R&D structures for specialized areas like design centers and business units.

This restructured R&D organization operates independently yet collaborates organically, aiming to enhance competitiveness and drive innovation in the automotive industry.