Hyundai Autonet_Business Report FY2007
Business Highlights
Highlights in recent years
New Subsidiaries
The Company established Hyundai Autonet India Engineering Private Limited (HAIE) in India. The new subsidiary is capitalized at 324.98 million won, and conducts research and development on automotive electric equipment. (From a press release on Apr. 27, 2007)
The Company established Hyundai Autonet India Private Limited (HAIL) in India to manufacture and sell automotive electronics components. The new company is capitalized at 2,938 million won, which was wholly provided by Hyundai Autonet. (From a press release on Oct. 15, 2007)
Contracts
The Company will supply car AVN (Audio Visual Navigation) products, which include audio and visual functions along with a navigation system, as original equipment to Hyundai Motors and Kia Motors. It will manufacture AVN products for use in the remodeled Sonata, which underwent a minor design change, and the 2008 model year Sportage. In the future, it aims to provide these products to all the car models built by Hyundai and Kia. It will also develop AVNs products for use in North America and Europe, planning to start delivery of them at the beginning of 2008. (From a press release on Oct. 31, 2007)
| Financial Overview | (in millions of won) |
| - | FY2007 | FY2006 | Rate of change |
Remarks |
| Sales | 882,862 | 795,032 | 11.0% |
Sales breakdown |
| Operating income |
33,147 | 48,419 | (31.5%) | - |
| Net income |
34,545 | 43,337 | (20.3%) | - |
New Subsidiaries
The Company established Hyundai Autonet India Engineering Private Limited (HAIE) in India. The new subsidiary is capitalized at 324.98 million won, and conducts research and development on automotive electric equipment. (From a press release on Apr. 27, 2007)
The Company established Hyundai Autonet India Private Limited (HAIL) in India to manufacture and sell automotive electronics components. The new company is capitalized at 2,938 million won, which was wholly provided by Hyundai Autonet. (From a press release on Oct. 15, 2007)
Contracts
The Company will supply car AVN (Audio Visual Navigation) products, which include audio and visual functions along with a navigation system, as original equipment to Hyundai Motors and Kia Motors. It will manufacture AVN products for use in the remodeled Sonata, which underwent a minor design change, and the 2008 model year Sportage. In the future, it aims to provide these products to all the car models built by Hyundai and Kia. It will also develop AVNs products for use in North America and Europe, planning to start delivery of them at the beginning of 2008. (From a press release on Oct. 31, 2007)
R&D
R&D Structure
-R&D staff account for approximately 30 percent of the total number of employees
-Working closely with car OEMs from the initial stage of product planning, engineers at the R&D center focus on developing automotive multimedia equipment and electronics control devices.
-The Company has developed close ties with the car electronics development centers of Hyundai Motor Company and Kia Motors Corp. In addition to carrying out development activities on mass-produced products, the Company intends to put increased focus on exploratory R&D to engineer innovative next-generation technology; develop core components, which are fundamental items to reduce costs and improve the quality of its products; and enhance its designing capability.
-The Company has an R&D center in Icheon, Kyonggi-Do.
-A new R&D center is scheduled to be completed in Uiwan, Gyeonggi-Do in August, 2008. The Company will invest a total of 99.2 billion won in this project for the purpose of consolidating R&D activities in the area of electronic equipment at the Hyundai and Kia Groups.
-The Company also has R&D facilities in the U.S., China, and India.
The Company is making all-out efforts to become one of the most competitive suppliers in the world in terms of quality. It has established a cross functional team consisting of members from R&D, Production, Quality, Purchasing and other departments, which now is thoroughly analyzing all 26 evaluation items of the US Initial Quality Study (IQS) Audio and Entertainment Section, and devising and executing plans to improve product quality. The Company has already announced in Jul 2006 its "Global Quality Vision" which targets to grab the top spot in the IQS Audio and Entertainment Section in 2009. (From a press release by the company on Jun. 5, 2007)
The Company announced an establishment of new production technology research center at its Icheon plant. The research center develops production processes, methods and core equipment and lead renovations by creating new production system which is suitable to multiproduct production, low-cost and highly efficient. It also is equipped with capabilities to test basic elements of product designs and software so that it can play a role as a center to add partial or complementary changes to products in order to meet the needs of customers and markets. It explained that the establishment of the research center will allow the Company to shorten the lead time from product development to production, quickly respond to market changes, reduce production cost and improve quality. (From a press release by the company on May 18, 2007)
Recent developments
Technical partnerships
The Company singed a memorandum of understanding (MOU) with Daegu Gyeongbuk Institute of Science Technology (DGIST) regarding R&D corporation in the area of automotive electric components on May 22, 2007. As a number of automotive devices with computers and artificial intelligent (AI) is rapidly increasing, they intend to secure technology in the area of electric components at the same level as Japan and Germany. Their research themes are vehicle networks, sensor signal processing and multimedia systems, and so on. Through the project, they aim to develop standard software, which is applicable to all automotive electric components, and application systems based on the software. They also will develop guidelines for automotive designing, by analyzing and compiling a database of drivers' driving behaviors and load. By combining DGIST's strength in research and our technology for electric components, we try to develop core technologies for cars of the future. (From a press release by the company on May 23, 2007)
-R&D staff account for approximately 30 percent of the total number of employees
-Working closely with car OEMs from the initial stage of product planning, engineers at the R&D center focus on developing automotive multimedia equipment and electronics control devices.
-The Company has developed close ties with the car electronics development centers of Hyundai Motor Company and Kia Motors Corp. In addition to carrying out development activities on mass-produced products, the Company intends to put increased focus on exploratory R&D to engineer innovative next-generation technology; develop core components, which are fundamental items to reduce costs and improve the quality of its products; and enhance its designing capability.
-The Company has an R&D center in Icheon, Kyonggi-Do.
-A new R&D center is scheduled to be completed in Uiwan, Gyeonggi-Do in August, 2008. The Company will invest a total of 99.2 billion won in this project for the purpose of consolidating R&D activities in the area of electronic equipment at the Hyundai and Kia Groups.
-The Company also has R&D facilities in the U.S., China, and India.
The Company is making all-out efforts to become one of the most competitive suppliers in the world in terms of quality. It has established a cross functional team consisting of members from R&D, Production, Quality, Purchasing and other departments, which now is thoroughly analyzing all 26 evaluation items of the US Initial Quality Study (IQS) Audio and Entertainment Section, and devising and executing plans to improve product quality. The Company has already announced in Jul 2006 its "Global Quality Vision" which targets to grab the top spot in the IQS Audio and Entertainment Section in 2009. (From a press release by the company on Jun. 5, 2007)
The Company announced an establishment of new production technology research center at its Icheon plant. The research center develops production processes, methods and core equipment and lead renovations by creating new production system which is suitable to multiproduct production, low-cost and highly efficient. It also is equipped with capabilities to test basic elements of product designs and software so that it can play a role as a center to add partial or complementary changes to products in order to meet the needs of customers and markets. It explained that the establishment of the research center will allow the Company to shorten the lead time from product development to production, quickly respond to market changes, reduce production cost and improve quality. (From a press release by the company on May 18, 2007)
| R&D Expenditure | (in millions of won) |
| - | FY2007 | FY2006 | FY2005 |
| Amount | 64,164 | 57,063 | 36,420 |
| % of Sales | 7.3% | 7.2% | 7.6% |
Recent developments
| Project | Development period | Achievement | Car model |
| TQ BWS | Nov.01,2001 - Feb.28,2007 |
Back warning systems | Hyundai/Starex (Development code: TQ) |
| XDC BWS (HAE 3.5) |
Jun.01,2006 - Mar.01,2007 |
Back warning systems Airbag ECUs |
Beijing Hyundai/ New Avante XD (Development code: XDC) |
| JB HEV ATC | Dec.01,2005 - Mar.31,2007 |
Heater control units | Kia/Pride(HEV) (Development code: JB) |
| FCT HAE 3.5 | Jun.01,2006 - Mar.01,2007 |
Airbag ECUs |
Hyundai Turkey/ |
| New Engine ECUs | Jul.04,2006 - Mar.30,2007 |
32-bit hardware for next-generation engines | To be mounted on Hyundai's new engine platform for commercial applications. |
| ETC devices and antennas | Jun.01,2006 - Mar.31,2007 |
Exploratory R&D activities on proprietary
ETCs. After deciding the specifications, the Company plans to produce 200,000 sets for 19 to 24 car models per year. |
The Company plans to commercialize ETC equipment, installing the systems into interior mirrors, targeting 19 to 24 car models. |
| FD Audio/ AUX / BCM |
Dec.01,2005 - Apr.30,2007 |
Audio systems, AUX, body control modules | Kia/ Avante HD marketed in Europe (Development code: FD) |
| TQ Audio/ AVN/ATC |
Oct.01,2005 - May.30,2007 |
M420, M445, M445MP3 audio systems, AV systems and climate control equipment |
Hyundai/Starex (Development code: TQ) |
| S11 HAE2.5 | Feb.01,2007 - Jun.01,2007 |
Airbag ECUs | Cherry/S11 |
| Exploratory development activities on pop-up monitors | Jun.01,2006 - Jun.30,2007 |
Electric pop-up monitors with 7" liquid crystal displays | - |
| TPEG module | Oct.01,2006 - Jun.10,2007 |
TPEG module software used in car navigation systems | - |
| PND(Japan) | Oct.01,2006 - Jun.20,2007 |
Portable navigation devices | The company will supply them to Edia of Japan |
| KIATRONICS VQ/UN/MG/BL/JB |
Mar.01,2006 - Jun.15,2007 |
The following audio systems for each type of
vehicle platform: -VQ Audio (M445AUX, M445MP3, M466MP3) -UN Audio (M445, M445MP3, M466MP3, AUX) -MG Audio (M420, M445MP3, M466MP3, AUX) -BL Audio (M445MP3, M466MP3, AUX) -JB Audio (M445MP3, AUX) |
Kia/ Carnival (Development code: VQ) Carens (Development code: UN) Optima (Development code: MG) Sorento (Development code: BL) Pride (Development code: JB) |
| MC F/L Audio | Mar.01,2007 - Jul.31,2007 |
Audio(H-446) 2-DIN (low-priced audio systems) | Hyundai/Verna (Development code: MC F/L) |
| TB Audio | Mar.01,2007 - Jul.01,2007 |
Audio(H-446) 2-DIN (low-priced audio systems) | Hyundai/Click (Development code: TB) |
| A130 AVN rear camera systems | Jun.01,2006 - Jul.31,2007 |
1.AVN systems -A130 H/Unit(HDVB-065SRD) -A130 Roof Monitor(HRM-371SRDN) -A130 TDMB Tuner/DSP Amp (HATB-200SRD) 2.A130 rear cameras |
Ssangyong/Radius (Development code: A130) |
| BL Navigation/ Audio/ Antenna |
Mar.01,2006 - Jul.31,2007 |
1. Navigation systems 2. KIATRONICS audio systems -KIATRONICS BL M445MP3(M456) -KIATRONICS BL M466MP3 -KIATRONICS BL multiple terminals -Media units for BL 3. Car antennas (ANT-220BLD) |
Kia/ Sorento (Development code: BL) |
| JB KIATRONICS |
Mar.01,2006 - Jul.31,2007 |
KIATRONICS audio systems -KIATRONICS JB M445MP3(M456) -KIATRONICS JB multiple terminals -Media units for JB |
Kia/ Pride (Development code: JB) |
| ACUs | Mar.01,2007 - Jul.31,2007 |
Airbag control modules | Kia Slovakia/ Avante (Development code: ED) |
| VQ KIATRONICS AVN systems |
Jun.01,2006 - Sep.30,2007 |
AVN systems for high-end models - Adding DIF and TDMB - Adding interfaces to multimedia units |
Kia/ Grand Carnival (Development code: VQ) |
| UN KIATRONICS AVN systems |
Apr.01,2007 - Sep.30,2007 |
AVN systems for high-end models - Adding DIF and TDMB - Adding interfaces to multimedia units |
Kia/Carens (Development code: UN) |
| SA F/L Audio systems (Europe) |
May.01,2006 - Sep.30,2007 |
Audio systems (A100, A200, multiple terminals) | Kia/Morning marketed in Europe (Development code: SA F/L) |
| LDC F/L BWS | Jan.01,2007 - Sep.30,2007 |
Back warning systems | Dongfeng Yueda Kia/Cerato (Development code: LDC F/L) |
| HM MOST AV system navigation RSE systems |
Sep.01,2005 - Dec.01,2007 |
1.AVN systems with driver information systems
(DISs) 2.Rear seat entertainment systems |
Kia/Mohave (Development code: HM) |
|
NF F/L |
May.01,2006 - Nov.30,2007 |
Audio systems -A200(2DIN, Radio+CDP+MP3) -A300(2DIN, Radio+CDP+MP3+6CD changer) -A400(2DIN, Radio+Tape) |
Hyundai/ Sonata Transform (Development code: NF F/L) |
| BH front and rear cameras | Mar.01,2006 - Oct.31,2007 |
Front and rear cameras |
Hyundai/Genesis |
| CM DMB systems | Oct.01,2006 - Dec.31,2007 |
DMB (Digital Multimedia Broadcasting) systems | Hyundai/Santa Fe The Luke model (Development code: CM) |
| EN DMB systems | Oct.01,2006 - Dec.31,2007 |
DMB (Digital Multimedia Broadcasting) systems
|
Hyundai/Veracruz 2008 model (Development code: EN) |
| JB audio systems | Mar.01,2007 - Nov.30,2007 |
Audio systems -H-447 (Radio + MP3 + USB) |
Kia/Pride (Development code: JB) |
| CS CDC | Apr.01,2006 - Oct.31,2007 |
CD changers | Hyundai/County (Development code: CS) |
| CY Audio systems | Apr.01,2006 - Oct.31,2007 |
Audio systems -HGC-80 (Radio + Tape) |
Hyundai/Aerocity (Development code: CY) |
| GZ Audio systems | Jul.01,2006 - Oct.31,2007 |
Audio sysetms |
Kia/Granbird (Development code: GZ) |
| Common audio systems for Hyundai commercial vehicles | Apr.01,2006 - Oct.31,2007 |
Audio systems for Hyundai commercial vehicles |
Hyundai/ Aerotown, Global900, County |
| JM audio systems with XM satellite radios | Jan.01,2007 - Nov.30,2007 |
Audio systems with XM satellite audio devices -A200 (CDP + MP3) -A300 (6CDC + MP3) |
Hyundai/Tucsan (Development code: JM) |
| FD Airbag ECUs | Jan.01,2007 - Dec.31,2007 |
Airbag ECUs | Hyundai/i30 (Development code: FD) |
| SA F/L Airbag ECUs |
Jun.01,2006 - Nov.30,2007 |
Airbag ECUs | Kia/Morning (Development code: SA F/L) |
| MG3 Airbag ECUs | Feb.01,2007 - Dec.31,2007 |
Airbag ECUs |
Nanjing Automobile/MG3 |
| KMC BWSs | Jan.01,2007 - Oct.31,2007 |
Back warning systems | Dongfeng Yueda Kia/Sportage (Development code: KMC) |
Technical partnerships
The Company singed a memorandum of understanding (MOU) with Daegu Gyeongbuk Institute of Science Technology (DGIST) regarding R&D corporation in the area of automotive electric components on May 22, 2007. As a number of automotive devices with computers and artificial intelligent (AI) is rapidly increasing, they intend to secure technology in the area of electric components at the same level as Japan and Germany. Their research themes are vehicle networks, sensor signal processing and multimedia systems, and so on. Through the project, they aim to develop standard software, which is applicable to all automotive electric components, and application systems based on the software. They also will develop guidelines for automotive designing, by analyzing and compiling a database of drivers' driving behaviors and load. By combining DGIST's strength in research and our technology for electric components, we try to develop core technologies for cars of the future. (From a press release by the company on May 23, 2007)
| Partner (Country) |
Contractual coverage |
Date of signing contract | Contract period |
| Sirius (U.S.A) |
Use of patented technology on satellite radios | Oct. 2006 | Sep. 2006 - Dec. 2010 |
| Sisvel (Italy) |
Use of patented technology on MP3s | Oct. 2006 | Oct. 2006 - Sep. 2011 |
| Siemens (Germany) | Use of patented technology on smart keys | Dec. 2006 | Dec. 2006 - 2012 |
Investment Activities
Domestic Investment
| Project | Constructing new facility in Munbaek, Jincheon-Gun |
| Project period | From Dec. 2006 through Feb. 2008 (13 months) |
| Amount invested in FY2007 | 67.9 billion won |
| Planned amount of investment in FY2008 | 4.7 billion won |