Did you know KoreaLegal.org is sponsored by Bridging Culture Worldwide?
About Bridging Culture Worldwide
Since its founding, Bridging Culture Worldwide has focused on global and Korea-related business services. Based on over 3 decades of experience, they share cross-cultural insights to global teams and management. Bridging Culture Worldwide core services include: Consulting, Strategy, and Research; Publications; along with Project Development, IP, and Trademark. Visit http://www.bridgingculture.comOur Clients
Bridging Culture clients include: Golfsmith International (America’s leading golf retailer), GOLFZON ( Korea’s screen golf leader), the SPC Group (Korea’s largest Food group), Gale International (developer for Songdo IBD—a $40bb Korean smart city), Smashburger (2011 Forbes top business pick), Phizzle.com (mobile sports marketing), Initiative Media Worldwide (part of Interpublic Group and oversee $800 mm Hyundai Kia media buying), Prudential Financial (relocation services), Hyundai Motor Company Korea (#4 car maker), Kia Motors America, Innocean Worldwide (media arm of the Hyundai Motor Group), MOBIS Korea (auto parts), to name but a few.
2011-2012 projects include Golf, Auto, manufacturing, global construction, Green energy, retail, and service sectors in the US, Canada, Korea, and Middle East.
Don Southerton, CEO and President
Don Southerton is an advisor, consultant, marketing strategist, researcher, and coach for many of the top Korean-based corporations with global business, along with major western firms that have ventures in Korea and Asia Pacific.
Professional expertise includes Korean culture and norms, Korean market entry strategy, Korean education, linguistics, and workplace, along with most of Korea’s major conglomerates including Samsung, Hyundai Motor Group, including Hyundai, Kia, and Hyundai Engineering and Construction, SK, Lotte, POSCO E&C, Hanjin, Hyosung, and LG.
Market sectors supported include both traditional and new emerging Korea 2.0® enterprises including retail, fashion, food service, finance, manufacturing, service, education, design, and R&D.
Education
B. A. History. University of Colorado, Denver.
M. A. History. University of Colorado, Denver.
Post Graduate Study
University of Southern California (USC).
University of California at Los Angeles (UCLA).
Intercultural Institute of California, San Francisco (IIC).
University of California, San Diego, Graduate School of International Relations (UCSD)
Southerton also engages in ongoing research into market entry, cross cultural communication, sustainability, and the dynamics of U.S.-Asian commerce. A key resource for this on-going research is an alliance with the Graduate School of International Relations and Pacific Studies at the University of California, San Diego and its Korean Pacific Program. Southerton serves as an area specialist for the university.
Southerton and his work has also received media recognition both in the U.S and Korea. In addition, Southerton frequently speaks to Korean and international groups and organizations on Korean business, workplace culture, emerging Korean markets, and entrepreneurship. Moreover, he posts daily observations on trends impacting Korean and Asian business, corporate development, and culture at: http://bridgingculturekorea.blogspot.com and via Everything Korean Vodcasts http://www.youtube.com/user/ds19192 He is also editor for Korea Legal.org http://www.korealegal.org. Recently, Southerton is one of the founders of Korea Business Central, the premier Korea business website.
Articles on Bridging Culture Worldwide and Don Southerton
November 2004 Korea Times (Los Angeles edition).
December 2004 Chief Executive (Korean edition).
April 2004 Atlanta Korea Times
September 2005 Bloomberg Markets
February 2006 Ann Arbor News
July 2006 Computer World Magazine
July 2009 Joong Ahn Ilbo, LA
August 2009 Joong Ahn Ilbo, San Diego
September 2009 San Diego Korea American Magazine
January 2010 Jacksonville Business Journal
August 2010 Korea Times, Seoul, South Korea
October 2010 Korea Times, Seoul, South Korea
November 2011 Forbes
December 2011 Forbes
January 2012 InDaegu Magazine
February 2012 Yonhap
February 2012 Korea Times
Pending articles for KOTRA, CNBC and BBC
Articles and Papers
“Effective Communication with Koreans.” White Paper, Nov. 2003.
“Addressing Needs of Host and Parent Employees.” White Paper, Sept. 2004.
“Henry Collbran and the Roots of Entrepreneurial Enterprises in Korea.” Presented at WCASS Fall 2004, Seattle, WA.
“Korean Managerial Style.” White Paper, Feb. 2005.
“Kia Motors America: A Cross-cultural Success Model” Spring 2010
“Initiative Media Worldwide: A Cross-cultural Success” Summer 2011
Book Publications
The Filleys: 350 Years of American Entrepreneurial Spirit, (IUniverse Press, 2005)
Intrepid Americans: Bold Koreans–Early Korean Trade, Concessions, and Entrepreneurship, (IUniverse Press, 2005)
A Yankee in the Land of the Morning Calm: A Historic Novel, Book 1
(IUniverse Press, 2006)
Coffee, Cars, and Corporations: Thoughts on Korean Business and Popular Culture, eBook 1 (Bridging Culture Publications, 2007)
A Yankee in the Land of the Morning Calm: Gold and Rail, Book 2
(IUniverse Press, 2007)
The Sioux in South Dakota History: A Twentieth Century Reader, “James R. Walker’s Campaign Against Tuberculosis on the Pine Ridge Reservation.” Contributing author (South Dakota Historical Society Press, 2007)
More Thoughts on Korean Business and Popular Culture. eBook 2
(Bridging Culture Worldwide Publications, 2008)
A Yankee in the Land of the Morning Calm: The Northern Frontier, Book 3,
(Bridging Culture Worldwide Publications, 2009)
Chemulpo to Songdo IBD: Korea’s International Gateway, (Bridging Culture Worldwide Publications, 2009)
Several works in progress— 2012 tentative release dates
Contact Information
Bridging Culture Worldwide
SoCal, Denver, and Seoul
Corporate Office
730 South Vance #3106
Lakewood, CO 80226
1-310-866-3777
Dsoutherton@bridgingculture.com
http://www.bridgingculture.com
Early Korean Car Production–Part 1 The Hyundai Pony
April 30th, 2012By Don Southerton
Some Background
Since the early 1960s, Korean firms have entered into partnership arrangements with international carmakers, including Nissan (Datsun), Toyota, Mazda, Fiat, and Ford. In particular, the Korean government and key industrial groups forged these alliances as the best way to introduce advanced automotive technology to South Korea. In 1967, Hyundai Group also entered the auto sector as a result of both the founder Chung Ju Yung’s early ties to the car repair business and growing government pressure.
Entering into a Ford Overseas Assembler Agreement, Hyundai looked to assemble Ford compact cars imported as knockdowns (CKD). Ford, in turn, would transfer technology and explicit knowledge, such as blueprints, technical specifications, production manuals, and training of Hyundai engineers.
Following the Hyundai model for taking immediate action and leveraging their background as a construction company, the Hyundai Ford plant was operational in 6 months, a record at that time for the 118 Ford assembly plants around the world
Interestingly, to accomplish the task, Hyundai gathered team members from its construction division who had excellent skills in project management and engineering backgrounds. Hyundai also recruited talent with experience in production from the Korean auto industry. Together with support from a team of 10 engineers dispatched from Ford, the Korean engineers, technicians and construction workers lived together in a makeshift structure near the plant, working 16 hours a day, seven days a week.
Initial car production at the plant focused on 2 models—first the Ford Cortina Mark II and soon after the Ford Granada Mark II. Production was for the South Korean domestic market with some limited export. Production number grew from 614 cars in 1968 to 7,009 in 1973.
Meanwhile by 1973, the Korean state-run Economic Planning Board (EPB) formulated The Long-Term Plan for Promotion of the Automobile Industry. In a policy-shift from CKD partnerships, the government mandated Korea’s four leading automobile companies–Hyundai, Daewoo, Kia, and SsangYong–to submit detailed plans to develop a “Korean” car by 1975.
Following similar tactics imposed across business sectors to build an import-substitution economy, the Korean government coerced automakers to embrace the new mandate or face restrictions in their current operations. Hyundai, a strong adherent of the state-corporate alliance, soon submitted a master plan for a new plant with a capacity of 80,000 Korean cars per year.
To meet the challenge, Hyundai approached 26 firms in five countries to acquire required technologies:
· 10 firms in Japan and Italy for car design
· 4 firms in Japan and the United States for stamping shop equipment
· 5 firms in the United Kingdom and Germany for casting and forging plants
· 2 firms in Japan and U.K. for engines
· and 5 U.S. and U.K firms for an integrated parts/components plant.
As it did entering shipbuilding and other technology ventures, Hyundai looked to the West for expertise. They soon hired former British Leyland Motor president Sir George Henry Turnbull as their new vice president. Turnbull, in turn, hired five other top British car engineers: Kenneth Barnett for body design, engineers John Simpson and Edward Chapman, John Crosthwaite as chassis engineer and Peter Slater as chief development engineer.
Turnbull’s exit from his position at British Leyland followed in the wake of the merger- restructuring of BMH and Leyland Motors. As a parting gift, he was, however, allowed any car from the lineup. He left with two Morris Marinas, a sedan and a coupe– cars Turnbull had developed. The Hyundai team used the Marinas as a base to develop the Hyundai Pony. Turnbull also brought with him the vision of using standard chassis to produce varying cars.
Along with Turnbull and his engineering team, the exterior design would come from the West with noted craftsman Giorgetto Giugiaro and the ItalDesign studio. Founded in 1968 by Giugiaro and Aldo Mantovani as Studi Italiani Realizzazione Prototipi S.p.A., the studio would became best known for its automobile design work, along with offering project management, styling, packaging, engineering, modeling, prototyping and testing services to manufacturers worldwide.
Hyundai’s new Pony was a true collaboration of design, engineering, and production. For example, the engine, transmission, and suspension were all from a previous model of the Mitsubishi Lancer. Mitsubishi Motors supplied the engines in 1200cc and 1400cc sizes. ITAL designed three and five-door (hatchback) body styles to fit on the basic Marina-styled floor pan.
The Hyundai cars borrowed heavily from Cortina design with MacPherson strut front suspension but retained the rear leaf springs. Parts costs were kept low by sourcing locally whenever possible. Parts also came from Hyundai’s Ford Cortina plant supply line. (The Ford relationship had been severed in part due to the government mandated for independent production.)
Hyundai continued its reputation to meet government mandate deadlines and by late 1975 the Pony with 90% domestic content was in production. This made Korea the second nation in Asia, in addition to Japan, to have its own domestic automobile. The car was officially released to the public in January 1976. The Pony was sold in three -door hatchback, four -door fastback, five-door wagon, and pick-up variants.
George Turnbull continued to serve as a vice-president and director of the Hyundai Motor Company until the fall of 1977 when he left for Iran National Motor Company.
This article is from content included in the forthcoming The Hyundai Way book.
For more details, see http://www.facebook.com/TheHyundaiWay
Tags: Don Southerton, Hyundai Kia Automotive Group, Hyundai Motor, Hyundai Pony, Korean car history, Korean consulting
Posted in Commentary | No Comments »