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KOREA UNESCO World Cultural Heritage - Jongmyo Shrine Autumn | 2009 | Vol.04 | No.15 Jongmyo Shrine is made up of Jeongjeon (the main hall), Yeongnyeongjeon (the Hall of Eternal Peace), and auxiliary facilities. Jeongjeon, with its attached cloister, is said to have been the longest building in Asia. It enshrines the memorial tablets of greatly honored kings and their queens, today containing 19 memorial tablets of kings and 30 tablets of their queens in 19 spirit chambers. Jongmyo Jerye, or the Royal Ancestral Rite, was one of the most important government events during the Joseon period. It was conducted five times annually. Additional rites were also performed on special state occasions to notify the ancestral spirits of the events. The king himself became an officiant who offered repetitive bows and liquor before each chamber according to strict procedures maintaining an austere ambiance. Each procedure is accompanied by ritual music, Botaepyeong and Jeongdaeeop.The orchestral ensemble is composed of Chinese-derived and native string, percussion and wind instruments including bell chimes (pyeonjong), stone chimes (pyeongyeong), the cylindrical Chinese oboe (dangpiri), the bowed zither (ajaeng), and the transverse flute (daegeum), which still capture the authentic form of the old court music that has been played since the early Joseon period. The head of the dynasty's Jeonju Yi Clan still officiates at the annual rite on the first Sunday of May. Jongmyo was built in 1394, when the Joseon Dynasty moved their capital from Gaeseong to Hanyang (the present Seoul), but was burnt to the ground during the Japanese invasion of Korea in 1592. The reconstruction was planned in 1604 and completed in 1608, the 1st year of Gwanghaegun (r. 1608-1623). Jongmyo Jerye, the royal ancestral rite, is certainly a historical rarity in the world, with 500-year old formalities for ancestral worship set in 1462. It keeps intact the original procedures for the offering of sacrificial gifts of food and drink in authentic ritual utensils, with royal descendents and participants costumed by rank, as well as ritual dance and music ensembles. Hyundai Motor Company Phone : (82-2) 3464-3192 Fax : (82-2) 3464-3513 Website : http://www.hyundai.com Register Date : March. 10, 2006 Registered No. : 2009-C Publisher : Mong - Koo Chung & TRUCK BUS Jongmyo Shrine is dedicated to the spirits of Korea's royal ancestors. The royal family of the Joseon Dynasty paid homage to their forefathers in the time-honored Confucian tradition. This sedate shrine of beautiful architectural simplicity is appreciated as an invaluable cultural inheritance and was registered on UNESCO's World Cultural Heritage List in 1995. Designed : Communications OCTO Inc. Published : September. 30, 2009 Commercial Vehicle Export Planning Team We welcome your suggestions & your comments. If you have great stories which are related to Hyundai, Please feel free to e-mail Mr. W.H Kim : [email protected] Cover Story Cover Story HD210 (6 2) HMC rolled out the HD 210 6 2 in September, an upgraded version of the popular HD 120 mid-size truck. Responding to the Other Advantages over bigger trucks Suspension reinforcement growing emphasis on operating efficiency and cutting costs from increased oil prices, the new version features an extended The liftable axle rides on air suspension, which reduces the risk of - Main springs : 11t 10 wheel base and liftable pusher or tag axle for greater payload capacity. damage to cargo from road shock or impact. - Helper : (11t 6) (11t 8) + (12t 2) (17t 4) The advantage of increased stability becomes more evident when using Special Features the truck loaded with cargo. In addition, the extra brakes on the pusher The HD 210 6 2’s wheel base is 800mm longer than the HD 120 Extra or tag axle improve the truck’s overall braking performance. Long model (for a pusher-axle truck) and comes with a pusher or tag liftable axle mounted to the rear axle. This configuration distributes the The leaf springs in the rear axle have also been reinforced by increasing weight of the load among all six wheels, enabling the truck to carry the their thickness and adopting a double frame. same payloads or greater than a large-size truck. This benefit is especially important for hauling heavy cargo short or medium distances or for transporting bulk cargo for longer hauls. 100 ~140mm 5,695mm Specifications Chassis Cab Dimension (mm) Another benefit of the HD 210 6 2 is its narrower cab width than a Chassis Model Lifting axle type Wheel Base large-size truck, offering greater mobility and maneuverability on narrow roads. Overall The Advantages of Pusher and Tag Axles Wheel Tread Overhang The pusher axle, mounted in front of the rear axle, is a major HD210 C/Cab Pusher 5,695 (4,295+1,400) Tag 6,895 (5,695+1,200) Length Width Height Front / Rear Front / Rear 9,440 2,400 2,505 1,795 / 1,660 1,245 / 2,500 Front / Rear Pusher 3,720 / 8,800 8,800 21,320 improvement for transporting heavyweight loads such as bricks, steel 450mm plates or beams. By comparision, the tag axle, located behind the rear axle, is ideal for transporting bulk loads, providing extra support for the 7,400mm 2,310mm Weight (kg) Axle Capacity center of gravity. Max G.V.W The pusher or tag axle can be raised 100 to 140mm above the ground Power train when the truck is running unloaded. Reduced surface friction results in fuel savings and prevents unnecessary tire wear, adding to the overall economic value of the truck. Pusher axle Tag axle Engine Model Displacement (cc) Max Power/ Torque (ps/kg.m) Transmission Model Model (Capacity) Rear Axle Ratio D6DA19 (Euro 2) D6DA22 (Euro 3) 6,606 196 / 58 225 / 65 KH10 (Over Drive) D4H (8,800kg) 4.333 3.909 Comparison in terms of P/Load Drive type Engine G.V.W (kg) Chassis Cab (kg) Empty Vehicle (kg) Pay Load (kg) 02 | HYUNDAI Newsletter HD120 Extra Long 4x2 D6DA19 (196ps) 12,520 4,200 5,455 7,065 HD210 Ultra Long 6x2 21,320 4,850 6,105 15,215 HD170 Long 4x2 D6AB (290ps) 17,350 6,440 7,880 9,470 HD250 Long 6x4 D6AC (340ps) 28,150 8,840 10,740 17,410 HYUNDAI Newsletter | 03 Global News Global News Hyundai Chairman Receives Van Fleet Award in New York Vice Chairman H.Y. Choi Meets With Mongolian President Elbegdorj - Korea Society recognizes Chairman Chung’s strengthening of U.S.-Korea economic relations through the auto industry - Chairman Chung honored alongside former U.S. Secretary of State Henry Kissinger Motors and expressed appreciation for the variety of community activities and programs Hyundai has undertaken in Mongol, including those aimed at introducing Korean culture to Mongolian citizens. James A. Van Fleet, a commander of the U.S. Eighth Army at the height of the Korean War in 1951. The Korea Society is a non-profit organization dedicated solely to the promotion of greater awareness, understanding and cooperation between Korea and the U.S. Located in the central Asian continent and famed as the land of Genghis Khan, who created the world’s largest empire in the 13th century, Mongolia has left indelible imprints on the history of many Oriental and Western nations. It was liberated from China in 1921, and since 1992, it has remained a nonaligned nation with a presidential government system. Other Koreans who have received this award include former South Korean President Kim Dae-Jung, UN SecretaryGeneral Ban Ki-Moon and former Samsung Group Chairman Lee Kun-Hee. American awardees include former U.S. Presidents George H.W. Bush and Jimmy Carter. Hyundai-Kia Automotive Group Chairman and CEO, Chung Mong-Koo, received The Korea Society’s “2009 Van Fleet Award” an award given to those who have made great contributions to strengthen relations between the U.S. and South Korea. Mr. Chung received the award at The Korea Society’s annual dinner in New York. The dinner, which was held at The Waldorf Astoria hotel on June 9, was attended by over 500 guests, including influential political, economic and social figures such as former U.S. Secretary of State Mr. Henry Kissinger, who was also a joint recipient of the award; Special Representative for North Korea Policy Mr. Stephen Bosworth, Korea Society Chairman Mr. Donald Gregg, Governor Bob Riley of Alabama, Governor Sonny Perdue of Georgia and Newsweek Chairman Mr. Richard Smith. “Chairman Chung Mong-Koo exemplifies the visionary leadership, innovative spirit, 04 | HYUNDAI Newsletter and global perspective that are the hallmarks of the world’s finest corporate leaders,” Korea Society Chairman and former U.S. Ambassador to Korea Mr. Gregg said as he presented the award. The Korea Society presented Mr. Chung the award “for the important contribution his company is making to the strengthening of U.S.-ROK economic ties.” The General James A. Van Fleet Award, given annually since 1995 by The Korea Society, is awarded “to one or more distinguished Koreans or Americans in recognition of their outstanding contributions to the promotion of U.S.-Korea relations,” according to the organization’s web site. It is one of the most prestigious awards in the field of U.S.Korea relations. The award is named after the Korea Society’s founder, General “I’m extremely delighted to be here and consider it a great honor to receive this award,” Mr. Chung said in an acceptance speech. “It’s even more honorable to receive this award together with Dr. Henry Kissinger, who has dedicated his life to achieving world peace and improving relations between the U.S. and Korea. I promise you that Hyundai and Kia, as good corporate citizens of America, will work hard to fulfill our economic role and contribute to America’s economic recovery by developing the auto industry.” On July 22 , Mr. H.Y. Choi, Vice Chairman of HMC, paid a visit to Mongolian President Elbegdorj and had a cordial talk with him about ways to foster cooperation between Hyundai and the Mongolian government. President Elbegdorj took office June 18 as the fifth president of the nation. During the visit, President Elbegdorj displayed affection for Hyundai Over the years, Hyundai Motors has been an important partner of the Mongolian government in a variety of public projects including modernization of city buses in Ulan Bator. The partnership is expected to keep expanding in the years to come as the nation revs up its economic engine on the strength of being the number 10 country in the world in terms of natural resources. The nation is known to have 150 billion tons of coal, 550 million tons of copper and 62,000 tons of uranium. Staff Meeting Discusses Strategies for Boosting CV Exports of in Second Half of Year marketing strategies for the second half of this year. The HMC CV Division held a managerial staff meeting June 10 to devise strategies for ramping up exports of its commercial vehicles. Presided over by Vice Chairman H.Y. Choi, meeting participants evaluated current export market conditions and discussed At the meeting, Vice Chairman Choi called for stepped-up efforts to increase sales, pointing out that the second half of the year would be more crucial than the first in attaining the year’s export target due to the persistence of the worldwide market slump. He emphasized detailed, marketspecific and manageable sales plans as key to success. He added that such plans should be guided by a selective marketing approach where marketing efforts are focused on one or two major high-potential markets in a region on the basis of an accurate assessment of market conditions. The meeting was concluded by a new product education session about the Universe limousine and 15-ton dump truck slated for roll-out later this year. HYUNDAI Newsletter | 05 Global News Global News 2009 Hyundai Truck & Bus Convention in Vietnam A July Hyundai truck and bus promotion convention went off with a bang in Vietnam. The convention, held in two locations, Ho Chi Minh City on July 14 and Hanoi July 16, was designed to promote sales in the Vietnamese market by showcasing the superior quality of Hyundai vehicles and stimulating new or repeat orders from prospective and existing customers. The convention saw an impressive turnout. In each location, it attracted more than 100 large fleet companies in transportation, tourism and construction as well as senior government officials. The enhancement of customer relations through the event is expected to give Hyundai a leg up in solidifying its market leadership in Vietnam. Participants gave high marks to Hyundai’s efforts to supply vehicles receptive to the needs of Vietnamese customers such as the 6x2 HD210 and 4x4 HD120 trucks and Universe Limousine scheduled for release later this year. They also responded favorably to the improved warranty and after-sale service programs announced at the convention. In his opening remarks at the convention, Mr. Kim Young-kook, Senior Executive Vice President of HMC, pledged continued efforts to supply competitive high-quality products to the Vietnamese market in a timely manner. For this purpose, he added, HMC will invest aggressively in research and development to improve quality and stay sensitive to the evolving needs of its customers and market conditions. HMC has been the undisputed leader in the Vietnamese market for the last three years with a market share of 30 percent. This year, continuing the high growth trend started years ago, it had sold a total of 2,800 units as of July, including 330 buses (of which 116 are Universe coaches), 1,800 medium trucks and 670 large-size trucks. Hyundai’s 1st Half 2009 Sales Summary Hyundai Motor Company sold 1,403,931 units worldwide in the first half of 2009, a 5.8 percent decrease from a year earlier as demand for automobiles in the global market fell. Domestic sales accounted for 719,478 units while overseas sales accounted for 684,453 units. Hyundai reached five percent of global market share in the first half of this year for the first time ever, amid a 15 percent decline in global automobile demand compared to a year earlier. In the meantime, total worldwide sales of Hyundai commercial vehicles during the same period decreased by 25 percent to 38,721 units. Export sales fell by 35 percent y-o-y to 15,584 units. HMC Sales Record in 2009(’000 units) 1,490 CV Sales Record in 2009(units) 684 1,404 590 38,721 14,836 405 2008 2009 318 315 2008 2009 Domestic Sales Volume 15,584 28,932 582 CBU CKD 23,885 16,791 13,348 11,253 2008 2009 Export 2008 2009 Overseas plant 2008 2009 Sales Volume 2008 2009 Domestic 7,094 4,331 2008 2009 Export Overseas CV sales 2009(units) Region MIDDLE EAST & AFRICA 8,759 MDT 11,899 Model HDT 1,122 ASIA & PACIFIC 3,886 E. EUROPE 1,009 C & LATIN AMERICA 1,930 LARGE BUS 952 MEDIUM BUS 1,611 HMC Publishes Special-purpose CV Catalog and Specification Book Hyundai Wins Order for 203 County Coaches from Syrian Government The HMC CV Division beat out MMC, Toyota, Nissan and other competitors to win an order for 203 County coaches from the Syrian GFTO (General Foreign Trading Organization), the public procurement arm of the Syrian government. The buses, slated for shipment in September, will be allocated to government agencies. HMC Contracted to Supply 175 Super A/City to Emirates Transport HMC has been chosen to supply 175 Super A/City buses to Emirates Transport in U.A.E, a government-owned corporation under the auspices of the Transport Ministry of the United Arab Emirates. The order brings the total number of buses sold to the government-owned corporation to 638 units since the first order in 2007. HMC shipped 163 units in 2007 and 300 in 2008. The ordered vehicles will be used as school buses. Emirates Transport manages a fleet of 3,000 school buses. Hyundai buses account for 21 percent of them, with the share expected to keep 06 | HYUNDAI Newsletter growing in the years to come. The impressive sales record, achieved in a short span of three years, is attributed to the high-quality image of Hyundai buses and the highpower marketing campaigns of Juma Almajid Est, HMC’s local distributor. The feat also represents a successful case of fleet marketing which takes advantage of the promotional effects of the increasingly large number of Hyundai buses on the streets as the basis for winning repeat orders from large-fleet customers. The HMC CV Division issued three product information booklets in the second half of 2009 – a catalog and specification book for special-purpose CVs as well as a specification book for CVs in general. The special-purpose CV catalog features 137 models in the categories of 2-ton or heavier-duty trucks and mid- and large-size buses. It offers a rundown of the major features and general specifications of the models as well as special optional equipment available for them. The special-purpose CV specification book provides detailed information about the specifications of special-purpose CV models in production. The use of photos and drawings and comparative information about related models make for an easier grasp of the use and distinctive features of each model. The CV specification book adds to the previous edition information about newly released models and the expanded axle capacities of large-size trucks. HYUNDAI Newsletter | 07 Global News Global News Unique Selling Points of HD 65/72 and County Coach In recent performance comparison tests, Hyundai’s HD65/72 and County coaches beat their Japanese competition hands down, once again proving their unmatched quality and value for consumers. The tests, organized by HMC, were conducted in May and August in Saudi Arabia. The May test, which pitted the HD 65/72 against two Japanese competitors in seven performance categories, gave the Hyundai truck a decisive edge in power, braking and ease of driving, while rating it as moderately better or on par in other categories. In the August test, which measured performance in five main categories and 11 subcategories, the County came out far ahead of its Japanese counterpart in power and ease of driving while moderately better or equal in other categories such as fuel economy, noise and riding comfort. HD65/72 Items Engine Maximum Speed (kph) Model (ps/kgm) 5th Shift 0 80kph 5th, 50 80kph 4th, 40 70kph Departure Overtaking HD65 D4D (120/30) 139 33.4 25.3 18 “I”maker - “N”model “4”series (120/29) 125 34.7 27.4 18.4 “M”maker - “F”model “4D”series (120/30) 118 34.4 26.3 18.3 Note) All test vehicles are loaded with the same numbers of bricks. (4 ton) Excellent braking performance Stable braking performance with larger brake lining Braking Performance (Service Brake) Type Size 40 0kph Stopping distance (m) “I”maker “N”model VAH (Drum) 307x75x9.6 0.6g 10.49 Model (ps/kgm) 0 80kph 5th, 50 80kph County D4DC (120/30) 46 32 “M”maker - “R”brand “4D”series (125/30) 60 39 “T”maker - “C”brand “14” series (100/25) 53 38 Note) All test vehicles are loaded with the same numbers of cement bags. (1 ton) 1) Visibility (mm) W/Shield glass Wiper arm length O/S/R/V mirror County 1,930x870 550 190X300 “R”brand 1,900X850 525/550 170X300 “C”brand 1,895X855 525 145X235 County 6,260 (base) 1,910 (base) 1,860 (base) “R”brand 6,225 (-35) 1,845 (-65) 1,860 (0) “C”brand 6,230 (-30) 1,900 (-10) 1,830 (-30) County 660x1,740 320 (base) 670 (base) “R”brand 650x1,780 365 (+45) 685 (+15) “C”brand 660x1,685 375 (+55) 675 (+5) County 650x950 “R”brand 540x610 “C”brand 650x555 “M”maker “F”model VAH (Drum) 320x75x10 0.6g 10.49 Interior (mm) Length Width Height HD65 D4DC 218.4 35.068 6.22 (Basis) 100,000 Km 16,077 (Basis) 4,019 (Basis) 1,071 (Basis) “I”maker “N”model 223.3 41.601 5.25 (-15.6%) 100,000 Km 19,048 (+2,911) 4,762 (+743) 1,269 (+198) “M”maker “F”model 217.5 38.418 5.68 (-9%) 100,000 Km 17,606 (+1,529) 4,401 (+382) 1,173 (+102) Remarks 0.25 SR / L 3.75 SR / US$ Test method demonstration & test drive To get sales & marketing managers to conceive to the powerful performance of Mighty by comparing with competitors; models To take off wrong prejudice that Mighty lacks of loading capacity compared to Japanese makers’ models Departure Acceleration Items Engine Departure Acceleration (sec) Overtaking 2) Roomy Space HD65 D4DC VAH (Drum) 320x85x10 0.63g 9.99 Fuel efficiency superior to that of “I”maker by 15% Mighty saves fuel worth of $1,000 for 5 years in relation to those of “I”maker Data are based on test results evaluated in Saudi Arabia in May. 2008 Driving mileage (Km, Odometer) Amount of fuel (L) Fuel Efficiency (km/ ) Driving mileage / 1 year Amount of Fuel Consumption (L) Fuel Cost (SR) Cost (US$) Superior power performance Travel quickly and comfortably, Optimal for trip Convenience Designed to maximize driver’s and passengers’ comfort Superior power performance Moves faster, optimal for quick delivery Acceleration (sec) County Long uphill driving All participants were astonished and satisfied with powerful performance and competitiveness of Mighty. 3) Entry & Exit (mm) Size (WxH) 1st step ( ) Floor ( ) 4) Maintenance – large engine inspection cover They showed strong confidence in sales of Mighty. The prejudice of the Japanese models have superiority against Mighty without aim can be thrown away. Width 08 | HYUNDAI Newsletter (mm) ) x Length HYUNDAI Newsletter | 09 Global News Global News Sales Manager Lee Shares Tips for Success in Selling Buses Featured in this article is Mr. Y.K. Lee, manager of domestic sales of the HMC CV Division, who has ranked high in bus sales each year since he transferred to commercial vehicle marketing in 2007. His marketing career blasted off like a rocket when he sold 250 commercial vehicles during his first 12 months as a sales rep, making him the most successful case of a job transfer within the HMC CV Division. frequently when it comes to building a personal bond with him or her. To be sure, my professional goal was selling buses. But I tried to take the to the company at every level. I tried to be courteous and respectful to the company staff and took the initiative to greet everyone I came My mantra in marketing is “Never blame others for anything.” This across, from rank-and-file staff to executives, in the most polite manner I applies even when the customer is at fault. Even in such situations, I could manage. My sincerity finally began to crack their cold attitude turn the blame on myself and look for things that I could have done to toward my company. People there started to open their minds to me and make the things turn out differently. I trust that such sincerity and show interest in our products. willingness to go the extra mile to please the customer will eventually pay off. Along those lines, I hold the following statements as key relationship with my customers beyond that, by becoming someone who is useful to them in many other ways. I wanted to convince my customers that I can be their useful partner in their own work and that such partnerships can create a win-win situation for them and for me. Toward that end, I tried hard to be someone who is dependable, trustworthy and as good as his word. In so doing, I wanted them to look at me and evaluate me for who I am. I seized on that shift in attitude as the basis for building more intimate fleet maintenance staff who had a big say in the choice of models to be purchased. In parallel with this, I kept studying the company. I acquainted myself with its financial status and details of the competitor’s buses in the fleet. All of this was part of the groundwork I Timing because you have failed to go the extra mile to satisfy your customer’s In December 2007, the first opportunity came along. The company asked needs, and that’s your fault. So, when I get rejected by a customer, I me if Hyundai could supply five buses in one month to replace five old berate myself for it and push myself to do a better job of attending to my buses in the fleet that had to be scrapped. Under normal circumstances, customers’ needs. the order would have been impossible to fill because the usual lead time for bus shipment is three months. But it was an opportunity that could Now let us find out the secret of Mr. Lee’s success, in his own words. Marketing Strategies I was 47 years old when I was transferred to my current position. Most people get into CV marketing at a much younger age. I worked two or three times harder than those younger sales reps to offset any age difference disadvantages. Most sales rep visit five to six customers a day. I doubled that number. Another thing that I keep emphasizing to myself is that I, as a sales not be missed because it would allow us to get a foot in the door with associate, am the face of Hyundai Motors. When people look at me, the company. In the end, we were able to deliver the order by taking the they see my company in the way I deal with them. That gives me a three buses from another order. trouble shooter for them so that I will be the first person they will turn to for help when they run into problems. A similar situation surfaced in March. I learned that six buses in their fleet were set to be scrapped, but they were considering putting off a replacement order for financial reasons. I carefully went over their financial situation and decided that the chances were greater for them A Case Study Building Personal Bonds with Staff of Customer Company to go ahead with the order, with a short lead time again. Based on that At one point in 2007, my first year in CV marketing, I targeted a city bus right on target, and we got their order because we were the only company in Seoul, which had a fleet of 205 buses in operation. Until manufacturer able to fill the rush order. estimate, I got production started for the six buses. My estimate was then, the bus company had procured their buses only from a competitor hopeless case. These initial successes paved the way for winning orders for 70 buses in 2008. This year, I am aiming to supply 48 buses to them, and my goal for next year is 42 buses. Today, Hyundai buses account for 82 percent of I see intimacy as the most important factor in winning over customers. And there is nothing like coming face-to-face with your customer 10 | HYUNDAI Newsletter I started my approach to the company by making frequent visits, two or three times a week on average, for three months, to make myself known - The best way to get ahead in marketing is by being more diligent than others. - Marketing is a battle against yourself. You have to win it to win over customers. - Don’t be self-conscious about what others think of you. Just try to be good at what you do. - Try to be someone others can trust and have faith in. - Always be on the lookout for opportunities to make yourself - Study competitors’ products and explain to your customer what makes your products superior to theirs. - Find out about your customer’s needs in advance and think ahead about how you can satisfy them. - Think of your marketing job as an enjoyable and worthwhile part of your life. - Be prepared to give to others first. It’s a surefire way of opening their hearts to you. - Visit your customer frequently to find out about any manufacturer, with no single Hyundai bus in the fleet. So, before I decided to take on that company, it had been practically written off as a - Guard against complacency and always look for the extra useful to your customers. sense of pride as well as of responsibility, which I try to bring to bear on every encounter I get into with my customers. I try to be the frontline My Marketing Motto mile that you could have gone for your customer. I have always told myself that I only have myself to blame for any Mr. Lee joined HMC in 1988, and prior to his current position, he worked in product design at the Ulsan Plant and in industrial engine marketing and special-purpose vehicle production management at headquarters. In March, 2007, Mr. Lee was transferred into CV domestic sales division and assigned to a local office in the southern part of Seoul to be responsible for bus sales. At present, he is managing 60 customers: 10 city bus companies, 35 town bus firms and 15 tourist outlets. elements of my working philosophy. connections with people in charge of procuring buses as well as the carefully planned and laid for possible sales opportunities in the future. rejections I get from customers. Sometimes, such rejections occur Going the Extra Mile for Customers the 158 buses in the company’s fleet. That is quite a feat considering potential problems and act promptly to take steps to prevent them. - Try to differentiate yourself from other sales people by being innovative and unique. that in 2007 our share was zero. HYUNDAI Newsletter | 11 Special- Purpose Vehicles Before Service HD65 Aerial Working Truck Before Service for Hyundai in the World activates the PTO mounted on the transmission, which supplies power to the gear pumps. The hydraulic pressure transmitted from the gear pumps is used to move the attached equipment, extending the crane boom, rotating the boom turn table or operating the outriggers. While the superior quality of HMC’s commercial vehicles is well established worldwide, it requires adequate maintenance on the customer’s side to preserve the vehicle’s original quality and performance. This requirement is more emphasized for commercial vehicles than passenger cars because of the strains coming from long hours on the road. Line Up & Special Features The HD 65 aerial working truck, built on the HD 65 truck chassis, is capable of reaching up to 12 meters high and comes in both insulated and non-insulated models. The insulated aerial working model incorporates many innovative features. First off, its 3-stage boom and bucket-style work platform are made of fiber reinforced plastic for enhanced durability. In addition, the Introduction As a solution to the requirement, HMC has introduced the concept of “Before Service”, which is designed to prevent breakdowns by proactive maintenance. Under the Before Service program, HMC technicians visit customers to check their vehicles on site and conduct preventive maintenance work on anticipated problems. By boosting customer satisfaction, such active service leads to increased customer loyalty and a greater likelihood of repeat orders from existing customers. costs. These benefits translate into an increase in the overall economic value of the vehicles, the most important point of consideration in the purchase of commercial vehicles. This year, HMC has provided Before Service on 18 occasions including the South African Confederation Cup. In a related program, HMC distributors are running service clinics in conjunction with HMC to extend Before Service to major loyal customers. boom arm connecting the tip of the boom and the bucket is capable of An aerial working truck is a special-purpose vehicle featuring a crane swinging 125 degrees to the left and right for greater efficiency in mounted on a truck chassis. The boom of the crane is fitted with a working on electricity poles. Another attractive feature is that the bucket-style work platform so that workers can be lifted up in it to worker inside the bucket can maneuver the bucket around within the perform various jobs high above the ground. safe work range by using the control switch inside the bucket. Aerial working trucks are categorized as insulated, designed for electrical jobs such as repairing electric lines or transformers. and noninsulated, for other aerial jobs such as doing maintenance work on a Targeted Customers Major customers for the insulated aerial working Before Service, currently offered to major customers worldwide in collaboration with regional HMC distributors, is well received by them. They appreciate that Before Service is keeping the downtime of their vehicles very low, while bringing them big savings in repair Country Customer Name Model Services Provided Saudi Arabia Ismael Abu Ali HD65/72 Consumable Part Support UAE Emirate Transport Super A/City PDI Support / Urgent Part Support Yemen Raha Transportation Universe South Africa Springbok Atlas Universe Indonesia H. Sahar Latanindo / PT. Latanindo JTT / Mandira HD72 Philippine Victory Liner / Five Star Company Isalog Line / Cagsawa Universe References truck are mainly electricity installation building or pruning roadside tree branches. and repair outlets, while the Major components of an aerial working truck include a crane boom that transports workers to a desired height, a pair of front and rear outriggers that stabilize the vehicle when the boom is extended, a bucket that serves as a work platform and a work range control system that limits non-insulated aerial truck is Quality Investigation Driver’s Training seeing demand from building maintenance and repair firms. work area to prevent rollover of the truck. Quality Investigation Driver’s Training A push of the power take-off (PTO) button inside the cab of the truck Specifications HD 65 MODEL Dimension W/Base Engine Chassis Height Radius Weight Working BOOM U/BODY Material Size Bucket Angle Outrigger Winch 12 | HYUNDAI Newsletter Consumable Part Support Preventive Maintenance Insulated model 5700 x 2100 x 3500 2750/Short D4AF, D4AL, D2DC, D4DB, D4DD 11.6M 7M 100KG Consecutively turn 360° FRP 710 x 710 x 1,000 90° Automatic (to the left and right) Front 2 / Rear 2 -- Non-insulated model 6465 x 2030 x 3118 3375/Long D4AF, D4AL, D2DC, D4DB, D4DD 11.6M 8M 200KG Clockwise 180° & Counter clockwise -180° FRP 1,000 x 645 x 1,000 90° Manual (to the left and right) Front 2 / Rear 2 300KG (OPT.) Viet Nam Turkmenistan Consumable Part Support Preventive Maintenance Readycon / DMCI Heavy Duty Truck Xuan Truong / Nam Han Heavy Duty Truck Mailinh Trading co Universe Consumable Part Support Preventive Maintenance Ministry of Transport Super A/City PDI Support / Urgent Part Support HMC plans to continue to expand Before Service globally as a key element of its customer support program. The economic value added to HMC vehicles by the program is expected to boost sales in the second half of this year as the world economy begins to emerge from its doldrums. HYUNDAI Newsletter | 13 Global Family Hyundai Vehiculos Comerciales Chile S.A. (HVCC S.A.) HVCC has invested more than US$10 million in infrastructure and equipment at its headquarters and branches to support the operations. More than 15.000 square meters is now exclusively dedicated to Hyundai trucks and buses. This complements the investment spent on developing the dealer network. Staffing at the dealer level currently totals more than 60 employees who are directly working with the Hyundai brand. Vice Chairman Eduardo Avayú G History of HVCC S.A. HVCC, a unit of Indumotora Holding, is backed by more than fifty years of experience of its parent in the automotive products and services business. With a staff of over 1000, its business footprint extends beyond Chile to include Peru, Ecuador and Argentina. Today, Indumotora is one of largest, best known and most prestigious companies of its kind in the Latin American market. HVCC started its operations at the beginning of 2007, as the official distributor of Hyundai heavy-duty trucks and Universe buses. Since Januaury 2008, the company expanded its portfolio to include the full line-up of Hyundai medium-duty trucks and County buses. The HVCC team has expanding in step with the rising popularity of Hyundai commercial vehicles in the Chilean market and today is staffed by 32 dedicated professionals. 14 | HYUNDAI Newsletter Network Information Constantly growing, the HVCC network extends across Chile, with a presence in the main 15 cities providing national coverage that exceeds 90 percent. This network provides sales assistance and speedy aftersales support with excellence and courtesy every step of the way. Complementary to the distribution network, HVCC has started the operation of two mobile workshops in order to bring after sales-service to those special customers who require onsite support as in the case of the mining, construction and forestry industries. Growing Market Share Chile is one of the toughest commercial vehicle markets in the world, where more than 30 brands are locked into fierce competition. HVCC accepted the challenge of repositioning Hyundai trucks and buses as a strong contender. With the goal of achieving high customer satisfaction and strong brand loyalty, a master business plan was drawn up. Priority was placed on delivering excellent after-sales service and growing the sales volume. The plan was implemented with smooth success: Total market share increased from 3.5% in December 2006, to 6.3% in July 2009. More remarkably, this year HVCC has positioned itself as the leader in the mid-size truck segment with the HD65 and HD78, attaining a 25 percent market share in this segment, far ahead of its closest competitor. Also notable during 2009 HVCC has faced a depressed local market which has seen sales shrink by more than 50 percent compared to the total units sold in 2008. In this adverse situation, HVCC has surpassed brands with long histories and higher positioning, thanks to excellent teamwork and support of the Hyundai parent company in Seoul and the regional headquarters. Marketing A key part of the investment has been allocated for marketing activities, at a rate which was double the industry average in 2007 and 2008. The focus of the activity has been concentrated in the introduction of the heavy-duty truck models, where Hyundai has had to face famous brands with over 30 years of business in Chile. One of the most important marketing activities has been the test truck evaluation program. This program gives customers the chance to evaluate firsthand the performance of Hyundai products using them for extended test drives. products and also with the establishment of a direct link with prospective customers. Additionally, HVCC has invested into mass media advertising, including television, radio, newspapers, specialized magazines and billboards, among others. Key strategy for 2010 – 2011 Mission Statement: Hyundai Vehículos Comerciales Chile S.A. is a truck and bus distributor specializing in developing strategies which deliver added value solutions to customers, with the objective of reaching the highest customer loyalty rate in Chilean industry. Strategic Objective: To be a Key Player in the Truck and Bus Industry To consolidate and improve the current market position, achieving 8 percent market share and positioning Hyundai within the Top 5 brands of this very competitive industry. Tactic actions: Expand product line up: To cover new industry segments introducing HD120 and HD170 light-duty trucks into our market. And enhancing the product competitiveness of heavy duty trucks. Consolidate our distribution network throughout Chile assuring proper country coverage, which today reaches 90% of the country. To continue with an aggressive marketing plan, including massive advertising activities, as well as tailored and focused selective programs. Increasing direct financing activities, implementing innovative credit and leasing products. Increase activities in the after-sales area, improving spare parts and service performance through additional investment and dedicated training programs. Customer Management programs to enhance relationship and brand value, and to increase Customer Satisfaction Index (C.S.I) In order to achieve greater brand awareness, HVCC has developed a brand exposure program through the leading truck and motor shows which are held around the country. This has helped with the introduction of new HYUNDAI Newsletter | 15