Chung Ju-yung founded Hyundai Engineering and Construction Company in 1947, and later, with his brother Chung Se-yung, Hyundai Motor Company in 1967. The company’s first model, the Cortina, was released in cooperation with Ford Motor Company in 1968. In February 1974, Hyundai hired George Turnbull, formerly of Austin Morris at British Leyland, and five other British car engineers – Kenneth Barnett, John Simpson, Edward Chapman, John Crosthwaite, and Peter Slater – to develop its own car.
In 1975, the Pony, the first South Korean car, was released, styled by Giorgio Giugiaro of Italdesign and utilizing powertrain technology from Mitsubishi Motors. Exports began in 1976 to Ecuador, and soon after to the Benelux countries. Hyundai entered the British market in 1982, selling 2,993 cars in its first year. In 1984, the Pony was exported to Canada, though it did not meet emissions standards for the United States. Canadian sales exceeded expectations, and it became the top-selling car in the Canadian market at one point. The one millionth Hyundai car was built in 1985.
In 1986, Hyundai began exporting cars to the United States, with the Excel being nominated as “Best Product #10” by Fortune magazine due to its affordability. The company began producing models with its own technology in 1988, starting with the midsize Sonata. Aggregate production reached four million automobiles in the spring of 1990. In 1991, Hyundai developed its first proprietary gasoline engine, the four-cylinder Alpha, and its own transmission, paving the way for technological independence.
In 1998, following a shake-up in the South Korean auto industry and the Asian financial crisis, Hyundai acquired a majority stake in rival Kia Motors. In 1999, Chung Ju-yung transferred leadership of Hyundai Motor to his son, Chung Mong-koo. Hyundai invested heavily in quality, design, manufacturing, and long-term research, adding a 10-year or 100,000-mile powertrain warranty for cars sold in the United States and launching an aggressive marketing campaign. In 2004, Hyundai was ranked second in “initial quality” in a survey by J.D. Power and Associates in North America.
In 2006, the South Korean government investigated Chung Mong-koo's practices as head of Hyundai, suspecting corruption. Chung was arrested on April 28, 2006, and charged with embezzlement of 100 billion South Korean won (US$106 million), leading to Kim Dong-jin replacing him as head of the company. In 2009, the Hyundai Genesis luxury sedan was named 2009 North American Car of the Year, the first time for Hyundai. The Genesis’ V8 Tau engine also received a 2009 Ward's 10 Best Engines award.
Hyundai entered the crossover SUV market with the Santa Fe in 2000, followed by the Tucson in 2004. In 2018, Hyundai began focusing on hydrogen vehicles, launching the Nexo hydrogen-powered crossover SUV. In 2020, Hyundai launched the Xcient Fuel Cell, the world's first production hydrogen fuel cell truck. Hyundai also established Supernal, an urban air mobility (UAM) subsidiary in the United States, with plans to build a plant to produce flying taxis.
Hyundai Motor America began selling cars in the United States on February 20, 1986, with a single model, the Hyundai Excel. Initially well received, the Excel's faults soon became apparent; cost-cutting measures caused reliability to suffer. With an increasingly poor reputation for quality, Hyundai sales plummeted, and many dealerships either earned their profits on repairs or abandoned the product.
Hyundai has been operating an R&D centre in Frankfurt, Germany since 1994, that has been responsible for monitoring technology developments in Europe and designing and engineering new cars for the European market. In September 2003, the company opened its new European headquarters in Rüsselsheim, after an investment worth 50 million euro.
In 2002, Hyundai formed a 50-50 joint venture with Beijing Automotive Group to produce cars in China. The joint venture, called Beijing Hyundai, also manufactures several models which are exclusive to the Chinese market. It began operations in China by producing Sonata in December 2002.
Hyundai produces sedans, hatchbacks, crossover SUVs, vans, pickups, heavy trucks and buses in numerous plants worldwide.
Hyundai Motor Company began developing flexible-fuel vehicles (FFVs) in 1988. The test vehicle was 1991 MY Scoupe FFV. Since March 1992, in Seoul, Korea, through at least November 1993, field trials of several FFVs had been performed over more than 30,000 miles.
The new hybrid-electric FGV-1 was unveiled at the Seoul Motor Show in 1995 which featured full-time electric drive technology. The 1995 FGV-1 was the result of Hyundai's first experiments with hybrid propulsion systems in 1994.
Hyundai has a presence in motorsport, including participation in the World Rally Championship (WRC). The Hyundai i20 WRC has been used in competition since 2014. In 2020, Hyundai was the World Manufacturers’ Champion in the WRC.
Hyundai has been an official sponsor of the FIFA World Cup since 2002. In 2020, Hyundai’s Sensuous Sportiness design identity won the Design Management Institute's (DMI) Design Value Award. The company was ranked fourth in the world for its industrial design registrations in 2021, according to WIPO's annual World Intellectual Property Indicators.
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