Quick Facts about HMMA

Current Investment: $1.8 Billion

Production Goal: 390,000 cars in 20151,550 per day (Mon-Fri)

Team Members: 3,000+

Plant Size: 1,744 acres

Buildings Space: 3.2 million sq. ft.

Current Investment: $1.8 Billion

Production Goal: 390,000 cars in 20151,550 per day (Mon-Fri)

Team Members: 3,000+

Plant Size: 1,744 acres

Buildings Space: 3.2 million sq. ft.

2016 Hyundai Sonata

2017 Hyundai Elantra

HMMA 10‐Year Anniversary

May 20, 2015

3 Millionth Vehicle

June 30, 2015

2014 Economic Impact Study

Economic Impact

$4.82 billion2% of state’s Gross DomesticProduct

HMMA

Supporting 38,000 full‐timeequivalent jobs (direct & indirect)

$70 million tax revenue to state $10.7 million local tax revenue Total tax revenues $80.7 million

Hyundai Motor Manufacturing Alabama

“HMMA is nota plant. It is an 

industry.”

Prevailing wage for maintenance jobs:

Today: $18.00

Prior to HMMA: $12.50

‐ Dr. M. Keivan Deravi

2014 Economic Impact Study

Economic Impact

$4.82 billionStatewide Impact

60% of impact is from automotive assembly and parts suppliers operations

40% of impact is from retail, construction, services, etc.

2014 Economic Impact Study

Economic Impact

$4.82 billionStatewide Impact

Suppliers Impact: $1.2 billion $691 million payroll  23,855 full time jobs

HMMA Impact: $3.65 billion $676 million payroll  14,452 full time jobs

2014 Economic Impact Study

Economic Impact

$4.82 billionHMMA and its Montgomery County suppliers:

$2.4 billion in goods and services 20% of all goods and services 

in the county 14,000 jobs in the county

Montgomery County total gross domestic product is $12 billion

$9.6 Billion

Quality

www.autooninfo.net

Quality

Kia, Hyundai rise …in J.D. Power quality studyUSATODAY / June 17, 2015

The twin South Korean brands, Kia and Hyundai, have moved to the top of the pack in the 2015 J.D. Power and Associates Initial Quality Study released Wednesday, the most closely watched gauge of quality in auto manufacturing.

The Kia brand ranked second behind the top brand, Porsche, which took first for the third year in a row. And the Hyundai brand moved up to fourth place, right behind third‐place Jaguar. Both Kia and Hyundai are owned by the same company, Hyundai.

What is Quality?

QualityQuality

Quality

No Problems! Safety! Trust! Luxury!

Quality

Definition

Merriam Webster

“quality is a general term applicable to any trait or characteristic whether individual or generic <material with a silky quality>. property implies a characteristic that belongs to a thing's essential nature and may be used to describe a type or species”

Quality

What determines the Quality Level ?Quality level of the plant…

It is determined by the worst performer…

Capacity of the tub ...- It is decided by the shortest board

Quality

HMMA

Over Eighty Tier 1 suppliers

• U.S.A.

• Canada

• Mexico

• Korea

• More…

North America

Minor problems also impact the quality ranking

1stLexus

(216pts)

35thKIA

(813pts)

597 pts

1stLexus(68 pts)

35thMini

(185 pts)

117 pts

’2000 VDS ’2014 VDS

Vehicle Dependability Study

Quality as a Differentiator Quality as a Given

Reduce quality gap between makers…

5 times↓5 times↓

Best

Worst

Quality

Reason for Producing Defect-Free VehiclesLoyalty gap

Brand loyalty of automobile owners is more sensitive

than other industries. Automobiles sales are an

extremely competitive market.

Quality

Bad Quality... Negative impact on Sales

3~5 persons

More than 6 persons

2 persons

1 personDirectly protest against company

Bad word-of-mouth and gossip

(friends & family)

Keep silent but never buy again

6 %

6 %

78 %

8 %

8 %

31 %

Tell it to

* Source : U.S. shoppers (1,186 persons)

Dissatisfied customer

63%

Customer Dissatisfaction Study

Quality

Story of Dad’s 1993 vehicle

Quality

Story of Dad’s 1993 vehicle

Quality

Story of Dad’s 1993 vehicle

Quality

Autonomous Vehicles

Tim Cook , Apple CEO Car Industry Ready for “Massive Change” (Oct. 2015)

Apple wants people to have an “iPhone experience” in their car.

"We'll see what we do in the future," he said, adding " I do think that industry is at an inflection point for massive change. Not just an evolutionary change.“

Quality

Autonomous Vehicles

John Krafcik, Google Head of Google’s Automotive Unit

Wealth of automotive experience:

• Ford executive

• Former CEO Hyundai Automotive America

• Ford and Google teaming up

Quality

Autonomous Vehicles

Obama Administration Proposed 10‐year $4 billion(January 14, 2016

Reasons:

• Minimize road accidents / fatalities

• Minimize traffic  / congestion

Quality

Safety

Hyundai Sonata 

Adaptive Cruise Control

Hyundai Elantra

• Blind Spot Detection• Rear Cross Traffic Alert• Lane Change Assist

Safety

Quality

Hyundai Elantra

• Lane Keep Assist

Safety

Hyundai Elantra

• 7 Airbags

Safety

Quality

Safety

Quality

Titanic’s Doom (in 1912)

The root cause of Titanic’s Doom

Quality

Titanic’s Doom (in 1912)

... the builder of the Titanic struggled for years to obtain enough good rivets and riveters and ultimately settled on faulty materials that doomed the ship... Small forges tended to have less skill and experience…

Many of the rivets studied by the scientists were found to be riddled with high concentrations of slag. A glassy residue of smelting, slag can make rivets brittle and prone to fracture…

Samples of four different types of rivets recovered from the Titanic. While some ships of the time were built entirely with steel rivets, the Titanic used a mix of steel and iron rivets. In the bow, where the Titanic hit the iceberg, weaker iron rivets were used...

- April 15. 2008 -

These small rivets were the main cause of Titanic’s doom.

Quality

Quality

Inflection Point

" I do think that (automotive) industry is at an inflection point for massive change.” – Tim Cook (Apple CEO)

Quality

Quality

SuppliersUbuntu 

“How can we be happy when others are sad?”

• Work with your suppliers.• Ask them how you can help.• Educate your suppliers (salary and

hourly workforce).

Quality

Quality marches on.

감사합니다(Thank You)