Hyundai Motor Group Shuts Down Engine Development Center To Focus On Electrification

Even for Hyundai and Kia, the future is electric.

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Hyundai Motor Group, which is composed of Hyundai itself and Kia, definitely thinks that the future is electric based on its latest move. The South Korean automaker has reportedly shut down its Engine Development Center as it will now pour all of its resources into electrifying its future vehicle lineup.

Hyundai Motor Group Shuts Down Engine Development Center To Focus On Electrification Exterior
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This bold move was first reported by BusinessKorea, and is essentially the final nail in the coffin of the group’s internal combustion engine future. The report also says that the company’s Powertrain Team, which is composed of 12,000 R&D employees, has been transformed into the Electrification Development Team. Moving forward, Hyundai Motor Group is expected to only release vehicles with a degree of electrification, whether this will be a mild hybrid, traditional hybrid, plug-in hybrid, or fully electric vehicle (EV).

Hyundai Motor Group Shuts Down Engine Development Center To Focus On Electrification Exterior
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To further enhance its EV strategy, Hyundai Motor Group has also reportedly established a new Battery Development Center. In addition, the group has also reportedly torn down its walls among various R&D departments. By unifying its Project Management Team and the Integrated Product Development Team, the group expects EV development to be shortened.

Hyundai Motor Group Shuts Down Engine Development Center To Focus On Electrification Exterior
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Whereas most manufacturers are outsourcing and/or even partnering with other companies for their EV development (most notable of which is Subaru’s and Toyota’s partnership for the Solterra and bZ4X), Hyundai Motor Group is developing everything in house, including its batteries. This is a much more costly strategy, but just like the fact that the automaker also has its own steel manufacturing division, the long-term benefits of making everything in-house far outweigh any of their cost concerns.

Hyundai Motor Group Shuts Down Engine Development Center To Focus On Electrification Exterior
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Swipe up to know more about Hyundai Motor Group’s electrified future.

The South Korean automaker has not yet made any formal announcements, but the move is hardly surprising. Earlier this year, Reuters revealed that Hyundai is cutting its lineup of internal combustion engine (ICE) vehicles by half and focus its development on EVs and also on hydrogen fuel cell electric vehicles (FCEV).

The result of their electrification plans first started with the Hyundai Ioniq 5, Kia EV6, and Genesis GV60. While not the group’s first EVs, these are the first to ride on their latest Electric Global Modular Platform (E-GMP), which has been designed from the ground up to be a bespoke EV architecture. All three models offer plenty of range, performance, and practicality that only a bespoke EV platform can offer.

Isaac Atienza
Isaac Atienza is a Filipino motoring journalist who joined TopSpeed.com in 2021. He is a car enthusiast who especially thinks that wagons are the best type of vehicle, though sports cars and anything with three pedals also tickles his fancy.  Read full bio
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