How Hyundai's new restructuring plan will affect Alabama

Sunday, 05 November 2017, 09:41:48 PM. At least one analyst is calling it 'a landmark moment in the 47-year-old automaker's history.'
Hyundai Motor Group surprised analysts last week by announcing a company wide restructuring. According to Korean media reports, the auto company will replace its traditional command-and-control model for a business model giving more authority to regional subsidiaries. Instead of all moves going through corporate headquarters in Seoul, the company is moving to a model closer to competitors such as Honda and Toyota. As Forbes explained: "In other words, Hyundai Motor Manufacturing of America, the plant in Montgomery, Ala., that makes the Sonata and the Santa Fe, gets its production orders from a planning team at Hyundai HQ in Seoul, not from HMA in Fountain Valley, Calif."  The old model was resulting in supply and demand problems in terms of manufacturing targets that didn't line up with sales targets, the magazine reports. This is the latest in a series of moves Hyundai has made over the last few months to retool in the wake of slumping sales. In August, Hyundai, and its luxury arm Genesis, were exploring moves to slash the product design time in half - from three years to about a year-and-a-half. Sales for Hyundai in October were down 15 percent from the previous year, the company reported Wednesday. Genesis sales were up 49 percent over 2016, while sales of the Tuscon and Santa Fe were up....Read more
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