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The Overseas Production Network—‘Model Factories’ and the Global Transfer of Hyundai Motor’s Production System

In: Agile Against Lean

Author

Listed:
  • Hyung Je Jo

    (University of Ulsan)

  • Jun Ho Jeong

    (Kangwon National University)

  • Chulsik Kim

    (The Academy of Korean Studies)

Abstract

This chapter examines how Hyundai Motor’s domestic production system has been transferred and operated overseas in line with the expansion in overseas production. The overseas plant construction of Hyundai Motor has been to transfer the agile production system set up in Korea to green-field areas. In this process, the company has applied the ‘model factory’ concept with flexible production technology and skill-saving work organization to overseas plants. Korean parts makers that entered overseas markets together with Hyundai Motor have also been able to localize their parts supply systems. Applying Abo (Hybrid Factory: The Japanese Production System in the United States, Oxford University Press, 1994) concept, Hyundai Motor can be regarded as having succeeded in overseas production by ‘applying’ the company’s production system. This method is distinct from the way in which Toyota and other Japanese automakers have actively promoted localization and gradually ‘adapted’ to new overseas locations.

Suggested Citation

  • Hyung Je Jo & Jun Ho Jeong & Chulsik Kim, 2023. "The Overseas Production Network—‘Model Factories’ and the Global Transfer of Hyundai Motor’s Production System," Springer Books, in: Agile Against Lean, chapter 0, pages 197-222, Springer.
    • Handle: RePEc:spr:sprchp:978-981-99-2042-6_6
    DOI: 10.1007/978-981-99-2042-6_6
    as

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