In the past five years, no other major carmaker has grown as fast as Korea's Hyundai Motor (HYMZY). Much of that success stems from the company's relentless campaign to boost the quality of its vehicles, which has lifted Hyundai to the top ranks of auto makers in customer satisfaction.
Perhaps less noticed has been Hyundai's renewed focus on design. It now has some 500 designers on staff, up from 150 just five years ago. About 100 of those are now working in the U.S. and Europe to tailor Hyundai's cars to international markets.
At the center of Hyundai's design push has been Kim Young Il, executive vice-president in charge of design and brand strategy for both Hyundai and its sister brand, Kia (KIMTY). BusinessWeek Asia Editor David Rocks and Seoul Bureau Chief Moon Ihlwan spoke with Kim in his Seoul office about Korean design, the development of the new Azera midsize sedan, and a new luxury sedan in the planning stages that Hyundai hasn't unveiled. Edited excepts follow.
Hyundai Motor has had great success with both its sedans and SUVs. Where do you go next? There are many categories that we want to go into. Some of them were shown at the recent Detroit Auto Show. Kia, for instance, introduced the Soul, which is a compact vehicle combining features of a small SUV and a small minivan. For Hyundai, we had the Talus concept, a mixture of an SUV and a sports car. Another example is the successor model for the Trajet -- a station wagon and minivan combined.
Do you have a basic design philosophy that you want to express in all your cars? Our design direction for Hyundai is the river stone: a very smooth, solid, and refined surface. The direction of Kia is a brick: solid and aggressive, with a feeling of strength.
River stones represent perfect aerodynamic shapes, which is ultimately what carmakers have been trying to create for years. Is that really a big departure for Hyundai or any carmaker? This may be the kind of shape every carmaker is looking for. But I'm talking about finding Korean lines for Hyundai. Western carmakers also look for perfect shapes, but we are seeking an Asian and Korean perspective. At the end of the day, the interpretation and execution of the shapes will be completely different.
Can you create a car that will be successful in global markets and yet has Korean design DNA? We don't have it yet. But it is what we are trying to develop. I have regular meetings with Toyota's (TM) chief designer. He talks about the J-factor -- the Japan factor. I told him that I'm trying to develop the K-factor.
Can you make your cars distinctively Korean and truly different from Japanese and German designs? We Koreans are at an early stage in developing our own style. Korean products, including Hyundai, are not yet mature or perfect. But we are on the way, and once we get there our products will be highly competitive. If you look at Korean cell phones, they have a round shape, but if you look at German, Japanese, or American products they are always square, defined geometrical shapes.
What about the interiors of your cars? Are river stone and brick the metaphors there as well? The basic direction for Kia is more functions, more practical, more equipped with "it," appealing to the young. For Hyundai, the Azera represents the direction [in which] we are heading. The dashboard slopes downward to give you a feeling of more space and greater visibility while offering an aesthetic shape. It is nothing like BMW or Audi. If you sit in an Audi, the belt line is too high. You have the feeling that you are closed in. You can not breathe.
Do you have foreign designers working for you? We have three overseas design studios. There are around 40 designers in Europe, around 50 in the U.S., and eight in Japan. They take part in developing regular products and play an important role in creating models appealing to local tastes. Our designers in L.A. played a prominent role in developing the new Santa Fe SUV.
Where do you stand in developing your new luxury car? We are still making many changes. I tried to create a very clear design concept and direction. I got confirmation from the top management and gave that to designers at home and abroad. I made sure my designers clearly understood my idea and concept. They sent me sketches and ideas, and we talked about them. [We] discussed why we liked certain ideas and lines. But the design is far from settled.
Does traditional Confucian culture conflict with the needs of a modern company trying to arrive at the best design? As we have to appeal to local tastes and needs in global markets, we sometimes have to sacrifice our own Korean or Confucian philosophies. But we can't be an American or European manufacturer even if we try. We are a Korean car manufacturer. We have to design cars that will be well received by American drivers, without losing our own touch. I need to teach young designers our traditions to make sure they carry on the K-factor. You can't just follow the global trend without seeking a balance with things Korean.
But how about the internal processes? Do you encourage younger designers to challenge their seniors and speak their minds? We are very hierarchical. I'm not saying this is wrong, but we have to break down barriers preventing free communication between designers and between junior staffers and more senior people, and between headquarters and overseas labs. We have been removing the barriers, but I would like to place more emphasis on promoting dialogue.
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