Hyundai is spreading the wealth

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Hyundai is spreading the wealth

Hyundai Motor Group is making progress on its pledge to reduce advertising and distribution business among its affiliates as part of the company’s efforts to open competitive bidding to small and midsize enterprises.

The automotive group, which has more than 50 affiliates, last month announced it would open up advertising and distribution work worth 600 billion won ($529 million) by the end of this year.

The group said yesterday nearly 30 percent of the targeted amount has been allocated to SMEs through competitive bidding. It said 178 billion won in orders has been placed with third-party companies through June.

In distribution, work valued at 36 billion won has already been given to nonaffiliate companies this month and 125 billion won is planned for June.

Areas opened to competition are product transportation for Hyundai Wia and Hyundai Mobis, shipping and unloading for Hyundai Steel products, and operating transportation facilities for Hyundai Motor and Kia Motors. In addition, 7 billion won in advertising projects was opened in May, with 10 billion won more scheduled for June. Advertising was previously dominated by group affiliate Innocean, which is owned by Hyundai Chairman Chung Mong-koo and his family members.

Hyundai identified the promotion campaign for the Sonata and Tucson ix, television ads for the Sonata Hybrid and Sportage R, Hyundai’s World Rally Championship, and building the Kia brand as areas that have been, or will be, handled by third-party companies.

By Joo Kyung-don []

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