Influences on Global Influences on Global Interior TrendsInterior Trends

Pete MonteroPete MonteroHyundai-Kia America Technical CenterHyundai-Kia America Technical Center

Pete Montero- SAE 2009 (5/21/2009)

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Pete Montero- SAE 2009 (5/21/2009)

Examples of Cultural Differences :•Cultural Preferences (i.e. Color, Material, Pattern)•Post WWII Experiences•Language Differences•Anthropometric Differences

Iconic post warEuropean small cars

JDM Honda

Fiat 500

2009 Hyundai Sonata facelift

Pete Montero- SAE 2009 (5/21/2009)

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Examples of Societal Differences:•Regulatory (especially Safety)•Differences in Economics of Vehicle Usage•Geographic Scale & Urban/Rural Models

London congestion charge

Pete Montero- SAE 2009 (5/21/2009)

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Examples of Market Revolutions influencing Cars as we know them•Effect further divergence (in 1950s, 60s & 70s) of U.S. from Global Markets•Revolutionary changes in cost, function & architecture1950s- 1970High Compression Engines

•More mass-market performance than previously practical•Enabled physical growth of “typical” American car•Enabled creature comfort features on mass-market automobiles

The Automobile became focus of growing middle class in late 20th Century

1980s- currentElectronics/ Electrification

•Miniaturization/ improved quality of existing electrical•Introduction of new products & functions•Replacement of previously-Mechanical products/systems•Enables revolutionary systems approach to systems

Potential revolutionary “re-thinking” of Vehicle Architecture & Function

Pete Montero- SAE 2009 (5/21/2009)

Early ‘80s evolution towards efficient packaging (short WB & lighter weight)• Unitized construction, FF platforms & hatchback bodystyles*• Since late ‘80s, Wheelbase has steadily increased while Package Efficiency (Int.

Vol./Curb Wt.) has decreased

Package Efficiency

(Int. Volume/ Curb W

t.)

SOURCE: NHTSA Historical Data

Pete Montero- SAE 2009 (5/21/2009)

Example of growth of Foreign Brand influence on U.S. Market• From Niche “Outsider” to Aspirational Mass-Market “Leader”

Pete Montero- SAE 2009 (5/21/2009)

Differences between Markets in Bodystyle acceptance•Americans really “don’t like Hatchbacks”?•The truth is, though execution can overcome biases (Mazda3), market acceptance varies

Pete Montero- SAE 2009 (5/21/2009)

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Maturing Imports go from Distributors to Transplants•From adapting home market models… to local production (w/some local development)… to developing vehicles for North America

STAGE WHAT’S NEEDED? RESULT

LOCAL SALES & MARKETING

AUTONOMOUS MANUFACTURING & ENGINEERING-DESIGN;

“VIRTUAL” CAR COMPANY

“MOTHER-LESS” DEVELOPMENT & MANUFACTURING;“A ‘REAL’ CAR COMPANY”

LOCAL EVALUATION, PRODUCT PLANNING & DESIGN

EXPERTS

Local R&D Tests & Evaluates to provide tuning for N. American

Market Requirements

LOCAL MANUFACTURING & ENGINEERING-DESIGN

American staff rotate to Headquarters for

development

MATURE LOCAL MANUFACTURING & ENGINEERING-DESIGN ;

“READY-TO-LEAD” EXPERTS

Local Teams run

Development Process

Pete Montero- SAE 2009 (5/21/2009)

Short-term Re-trenchment•Economic difficulties force consolidation (OEM, Platform, Vehicle)•(Potential) Regulatory convergence enables greater interchangeability among markets•Continued maturation of technologies eases pressure for Market-specific executions

Short- to Mid-term Emergence of New OEMs•B.R.I.C. Markets mature, becoming biggest in history & grow in influence•B.R.I.C. Industries mature, extending influence beyond home market

Mid-term return of Stability (“Growth”, he says, with crossed fingers)•Increased Market Demand, driving greater Competitive Pressures to offer something “Different” and “Break-away”•Increased Ability (& Temptation) to differentiate between sometimes-subtly different Consumer Markets

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Pete MonteroPete MonteroHyundai-Kia America Technical CenterHyundai-Kia America Technical Center

Pete Montero- SAE 2009 (5/21/2009)

industrializationindustrialization

depression/ wwIIdepression/ wwII

post-war boom/ suburbia post-war boom/ suburbia becomes the new urban becomes the new urban areasareas

maturation of maturation of suburbiasuburbia

Throughout the 20th Century, the U.S. evolved from a rural towards an urban & suburban society•Industrialization•Growth of increasingly well-off Middle Class

Suburbia becomes the new Urban•Congestion gives rise to “re-thinking” Urban/Suburban model for some (“New Urbanist” city planning model)

Pete Montero- SAE 2009 (5/21/2009)

Some OEMs address mature U.S. segments with market-specific executions•Market Size; Differences in Governmental Regulation & Consumer Expectations; Perceived failure of past “World Car” applications; Local Capabilities