Hyundai and Kia have appointed a new president for their joint research and development division in hopes of restoring the automaker’s reputation after a series of quality issues this year.
Kim Hae-jin will take over as the Korean automakers’ RD chief and was previously head of the development of engines and transmissions in addition to formerly managing RD quality control. In April 2013, both automakers recalled nearly 1.7-million vehicles due to potential faults in brake switches. The same issue caused a recall of 600,000 vehicles in South Korea in September.
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Last year, Hyundai spent $1.54 billion on RD, 1.9 percent of its revenue. Experts believe the Korean automakers need to invest more into RD in order to become a true innovator in today’s marketplace. In contrast, BMW spent $5.47 billion last year on RD or 5.2 percent of its revenue.
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[Source: Reuters]
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