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Thread: How Hyundai turned around from failure to success

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    Default How Hyundai turned around from failure to success

    This is an interesting article. We in Pakistan can learn from it.


    Hyundai Revs Up
    Chairman Chung Mong Koo steers South Korea's largest carmaker away from its checkered past and toward a global success story

    BY MICHAEL SCHUMAN | SEOUL

    Monday, Apr. 18, 2005

    Chung Mong Koo, chairman of South Korea's Hyundai Motor, carefully scrutinizes a newly designed gearshift lever for the automaker's Sonata sedan while his entire senior management team hovers around, anxiously awaiting his approval. The execs are justifiably edgy. Engineers added a plastic plate beneath the shifter to prevent spilled coffee and other flotsam from falling into the mechanism and gumming it up. It's a minor change, but no one is treating it that way, least of all Chung, a hard-nosed, detail-oriented boss with a penchant for micromanagement. ("He still makes the decision on how big a Christmas tree to put in the lobby," quips one former Hyundai executive.) After eyeballing the plastic plate from several angles, Chung demands, "Is this enough?" He's worried that the gizmo won't do its job. Finally, he nods his O.K., but reminds his executives: "We can't allow any defects to damage our cars."

    Chung, 67, has spent six years hammering this zero-defects message into the heads of Hyundai's employees—and the result has been one of the most surprising turnabouts in automotive history. A few years ago, Hyundai, South Korea's largest car manufacturer, was a synonym for "shoddy." Seoul was the only place in the world where you were likely to see large numbers of its cars on the street. Today, the company's line of pleasantly stylish, relatively inexpensive and certifiably reliable sedans and sport-utility vehicles is tailgating the industry's best-known brands in several prime markets. In the U.S., where the Sonata offers a lower-priced alternative to Toyota's Camry and Honda's Accord, Hyundai's sales reached 419,000 cars last year—up 360% since 1998. In Europe, sales spurted 21% in 2004. In India, Hyundai's 17% share of the passenger-car market makes it the largest foreign automaker and the second biggest car company overall behind Maruti, a Suzuki subsidiary. Hyundai is beating competitors by modifying its small cars with ingenious features designed for Indian customers, such as elevated rooflines to provide more headroom for turban-wearing motorists.
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    Source:

    http://forums.nasioc.com/forums/showthread.php?p=9557620
    Permanent positive change (in your life, or the society) with proper planning occurs slowly. While without planning any change becomes a disaster rather quickly. Said by Whocares...

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    Some more to add...

    It should be easy enough for Cho to recognize the secret of Hyundai's success. The South Korean company is following much the same formula that Toyota used decades ago to overcome its "cheap Asian import" stigma and become one of the world's most respected brands. When Hyundai first entered the U.S. market in 1986, its Excel sedan—an econobox with a $4,995 price tag—was an instant hit with frugal buyers. But customers soon discovered they were getting what they paid for: Excels were prone to quality-control problems and frequently needed parts replaced. Sales tanked, and Hyundai became a laughingstock. In 1998, Late Show TV host David Letterman listed his "Top 10 Hilarious Mischief Night Pranks to Play in Space"; No. 8 read: "Paste a 'Hyundai' logo on the main control panel." Says Brandon Yea, director of Hyundai's marketing-strategy team: "The Hyundai brand was worse than nothing."

    But like Toyota, which overcame consumer prejudice in part by inventing kaizen, a manufacturing process and corporate mantra translated as "continuous improvement," Hyundai has rapidly built up regard for its products through an almost fanatical attention to Getting It Right. Consumer Reports magazine recently named the Sonata the most reliable car in the U.S. And Hyundai rose to second place in J.D. Power and Associates' 2004 survey of initial car quality, tied with Honda and trailing only Toyota. Six years ago, Hyundai ranked among the worst in terms of initial defects. The comeback "is astounding," says Chance Parker, executive director at J.D. Power in Westlake Village, California. "We really haven't documented that level of turnaround in that period of time. They've adopted a quality mentality they didn't have
    Permanent positive change (in your life, or the society) with proper planning occurs slowly. While without planning any change becomes a disaster rather quickly. Said by Whocares...

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  4. #4
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    no prob...wat dey design...which pos dey hold...i must say...next time dey betta dun cheat foreign carz...
    GaNgS oF dXb

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    it is to admit that they have improved a lot.just compare the new sahpe with couple years old huyandai cars.there is a day and night difference.new models look nice specially the new sonat looks real good and they are offering 10/100000 miles warrenty.its a no brainer for the price.
    never enough..............
    Its better to have it and not need it then to need it and not have it.......

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