Developing new vehicles is a dangerous job, especially if you've watched those videos of high-speed vehicle tests; you would understand this point. However, an incredible and tragic accident recently occurred at Hyundai's factory: several engineers encountered fatal consequences before the vehicle they were developing had even started moving.
According to reports from various sources including the Korea Herald and Reuters, around 3 PM on November 19, an accident took place during vehicle testing at Hyundai's Ulsan factory, resulting in the suffocation death of three researchers.
The three were found unconscious in the vehicle performance testing laboratory of the electrification quality division inside the fourth factory in Ulsan. At the time, they were conducting tests in a “sealed room.”
Messages from the Hyundai Motor Union indicate that the three included two Hyundai researchers and one contractor from Hyundai. At around 12:50 PM that day, the three entered a closed laboratory to test the vehicle's driving performance.
According to the Korean Car Blog, “The victims are two senior researchers from Hyundai Motor Company (one in their thirties, the other in their forties) and a man from an external company, who were discovered by their colleagues in the factory after failing to leave the single-vehicle room as required.”
They were taken to the hospital, but unfortunately, resuscitation efforts were unsuccessful.
A fire department official told Reuters that they first received a report of the incident at Hyundai's fourth factory at 3:17 PM.
An officer from Ulsan stated that the Korean police and the Ministry of Labor began an investigation into the incident that same day.
Reports suggest that they were conducting a complex environmental testing procedure designed to observe how the prototype vehicle responded to simulated climate conditions. Typically, automotive manufacturers use environmental test chambers to subject vehicles to extreme heat, cold, humidity, and other environmental factors.
Some South Korean media claim that the suffocation may have resulted from the accumulation of exhaust fumes within the chamber.
There is also speculation that the three deceased may have tragically suffocated while testing the vehicle's driving performance, inside a lab that can accommodate about one vehicle.
On November 19, Hyundai Motor released a statement expressing profound sorrow over the incident at its Ulsan factory, mourning the victims and extending heartfelt condolences to their families.
Hyundai reiterated its commitment to fully cooperate with all relevant authorities to determine the cause of the incident and is dedicated to implementing preventive measures to avoid similar tragedies in the future.
The automotive media outlet Carscoops remarked, “Ulsan is a large area divided into five factories. If these individuals indeed suffocated, then the unfortunate irony is that Ulsan recently received $1.4 billion in funding to build a sixth factory dedicated exclusively to electric vehicle production.”
Just Celebrated Production Milestone of 100 Million Vehicles
Just recently, on September 30, 2024, Hyundai Motor achieved a historic milestone, with a global cumulative production of 100 million vehicles. It took Hyundai 57 years to reach this accomplishment.
To commemorate this milestone moment, Hyundai hosted a grand celebration at its Ulsan factory.
One of the highlights was the direct delivery of the 100,000,001st vehicle—an IONIQ 5— to customers, which officially rolled off the final inspection conveyor belt at the shipping center of the Ulsan factory.
The Ulsan factory began operations in 1968, the year Hyundai started producing the European Ford Cortina under license here. The factory also produced Korea's first mass-produced homegrown vehicle, the Pony, in 1975.
Hyundai's first model, the Cortina Mark 2 (top), and the Hyundai electric model, the IONIQ 5 (bottom)
In summary, the Ulsan factory holds significant historical importance for both Hyundai Motor and the South Korean automotive industry.
Today, the Ulsan factory is Hyundai's largest production base, equipped with its own port. The vehicles produced here account for roughly one-quarter of Hyundai's total output, with an annual production capacity of 1.4 million vehicles, of which 1.1 million are exported.
Hyundai is accelerating its transition from gasoline-powered vehicles to electric vehicles. In November of last year, it broke ground on a 20 trillion won factory in Ulsan specifically for electric vehicle production.
Hyundai Way
On August 28 this year, Hyundai held its 2024 CEO Investor Day event in Seoul, unveiling a new mid-to-long-term strategy called “Hyundai Way.”
Hyundai CEO Jaehoon Chang at the CEO Investor Day event
Under this strategy, Hyundai aims to achieve global annual sales of 5.55 million vehicles (including Genesis) by 2030, a 30% increase from 2023, adding one million units of production capacity; the long-term target for global annual sales of electric vehicles by 2030 is set at 2 million units, accounting for 36% of total sales.
Hyundai will introduce next-generation hybrid systems and plans to expand its hybrid model offerings from the current seven to fourteen, including small cars, large vehicles, and luxury models. Notably, Genesis will offer hybrid options for all models except those that are fully electric.
From January 2025, the new generation hybrid system TMED-II will be applied to mass-produced models. Additionally, future mass-produced hybrid models will come equipped with smart regenerative braking and V2L power supply technology.
Hyundai also plans to launch entirely new range-extended models while advancing battery technology innovations to develop 21 electric vehicle models by 2030, covering budget, luxury, and high-performance categories.
By 2030, Hyundai plans to develop new entry-level NCM batteries and apply them first to mass-produced models. At the same time, Hyundai will continue to enhance battery energy density, targeting an improvement of over 20% by 2030.
Hyundai intends to invest 120.5 trillion won (approximately 639.855 billion RMB) before 2033. Investment details include 54.5 trillion won for research and development, 51.6 trillion won for capital expenditures, and 14.4 trillion won for strategic investments.
Based on its mid-to-long-term financial goals, Hyundai targets an operating profit margin of 9% to 10% by 2027 and over 10% by 2030. The company also plans for the entire powertrain lineup, including gasoline, hybrid, EREV, and electric vehicles, to achieve the same level of profitability by 2030.
After being ranked among the top three global sales figures in 2022 and 2023, Hyundai's operating profit margin reached number one globally in Q1 2024, with sales and operating profit hitting all-time highs in Q2 2024, followed by receiving an “A” credit rating from the three major global credit rating agencies, showcasing Hyundai's continuing growth.
“Manufacturing a vehicle requires thousands of components, and it also needs the collective effort of millions of people involved in research, design, and manufacturing over many years,” said Sungwon Jee, Senior Vice President and Global Chief Marketing Officer of Hyundai Motor.
Dong Seock Lee, Head of Domestic Production and Chief Safety Officer of Hyundai Motor, stated, “Every employee at Hyundai Motor contributes to the accumulation of production of one hundred million vehicles through their hard work and dedication.”
However, a tragedy has occurred.
(The original title was “Three South Korean Automotive Engineers Mysteriously Dead.”)
