With the introduction of Genesis Motors Company in premium luxury car segment as well as the Hyundai Motor’s IONIQ, part of an expanded model lineup of hybrid and electric vehicles, many in the industry see these as bold moves by the Hyundai Motor Group and it leadership. Actually, it is but the latest chapter in a story and a legacy reaching back decades. Don Southerton, April 2016
In 1991, the Seoul Hyatt Hotel was the site of the launch of a new mid-sized SUV, the Hyundai Galloper. A pet project of future Hyundai Motor Group Chairman
Chung Mong Koo at the time no one felt the Galloper could dislodge the Ssangyong Korando, the popular and dominant SUV in the Korean market. That said, it would take only a year for the Galloper to surpass the Korando. To many this would be but the start of what would become the Galloper shinhwa--myth and legend.
Stepping back in the story, following family expectations and after graduating from college Chung Mong Koo joined the Hyundai Group, South Korea’s largest and highly diversified industrial conglomerate. By the mid-1970s, Chung was personally involved in the forming of a new division within the Group—Hyundai Precision and Industry Company LTD. With the growth of Korea’s export industry and increased transportation via ocean transport ships, Chung Mong Koo recognized the growing demand for ocean-going containers. In this new venture, Hyundai Precision’s approach was to establish a standard for cargo containers, while also gaining a competitive edge through production technology and product development. The model proved to be highly successful.
Meanwhile, as the Hyundai Group’s fledgling car division expanded its operations Hyundai Precision, too, saw an opportunity and began to support the Hyundai Motor Company as a Tier I supplier.
Soon after, Chung and Hyundai Precision would look to introduce its own four-wheel drive vehicle to the Korean market-- independent of Hyundai Motor Company.
Under Chung’s leadership, Hyundai Precision had since 1988 worked on developed the J-car project with a team from America’s Roush Enterprises. This became the X-100 ECS ROUSH. However, despite hopes the vehicle would have widespread appeal, reaction to the prototype by a test market study with U.S. consumers was poor.
Undaunted, Hyundai Precision turned to Mitsubishi for production support. After review, the Mitsubishi Pajero was selected. As was common at the time, the model would be re-branded and locally manufactured for the Korean market. Badged as the Hyundai Galloper, the SUV’s would be produced by Hyundai Precision at its Ulsan plant complex. It is worthy to note that Hyundai Motor Company provided the engines, transmissions and body panels, while Hyundai Motor Service, the Group’s auto retail arm distributed and sold the SVUs. (Hyundai Motor Service one of the companies Chung oversaw in addition to Precision).
Soon after the launch of the Galloper, it was a hit not only in South Korea but also in Europe and Asia. In 1991, 3,006 Gallopers were sold, with sales of 24,264 in 1992 and 37, 971 in 1994. This success was fueled by a number of high-profile international promotional and marketing activities--the Galloper participating in long distance off-road rallies, which gained considerable media attention.
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