Hyundai Selects SAP for Complete IT Systems at First U.S. Assembly Plant

Jan. 28, 2003
MONTGOMERY, Ala. and SEOUL, Korea -- Jan. 27, 2003 -- SAP AG (NYSE: SAP) today announced that Hyundai Motor Company (Hyundai) (NYSE: HYMTF), one of the

MONTGOMERY, Ala. and SEOUL, Korea -- Jan. 27, 2003 -- SAP AG (NYSE: SAP) today announced that Hyundai Motor Company (Hyundai) (NYSE: HYMTF), one of the world's leading automotive manufacturers, has chosen SAP as the main solution provider for the company's first U.S.-based original equipment manufacturer (OEM) assembly plant. Currently under construction in Montgomery, Alabama, the plant is the first North American automotive assembly site that will use SAP® software for all of its operations. Hyundai reviewed solutions from multiple ERP vendors, including Oracle, before selecting SAP for its ability to provide a comprehensive solution.

Hyundai's IT subsidiary, Autoever, is already working on the initial phase of the implementation. Hyundai has chosen the® e-business platform to bring efficiency to operations at its new plant that will produce approximately 300,000 cars per year, making it one of the largest overseas production sites around the globe. Hyundai expects to position itself as one of the world's top five carmakers with the increased output from the Alabama plant. The implementation will include core ERP functionality with mySAP?

Human Resources (mySAP HR); mySAP Financials; the industry-specific solution, mySAP Automotive; as well as SAP's leading supply chain solution, mySAP? Supply Chain Management (mySAP SCM). The combination of these solutions will enable seamless automobile production processes, including materials management, production planning, and supply chain event planning.

"We have made a strategic decision to use SAP in our first U.S. assembly plant to help us in our pursuit to become a global top-five carmaker," said Dr. Paeng Jung Kook, CIO of Hyundai Motor Company. "By choosing SAP as the primary systems provider for this plant, we will benefit from complete integration and a high level of efficiency. We are impressed with SAP's automotive expertise and ability to provide support to our company across the globe, and look forward to working together on this project."

Hyundai Motor Company will become the first Korean carmaker to implement an ERP system to streamline all core business needs by empowering employees and managers with self-service tools using mySAP HR and by improving its ability to process and interpret financial information and business data using mySAP Financials.

Hyundai will also leverage mySAP Automotive as a platform for future growth to immediately achieve enterprise agility and competitive advantage. mySAP Automotive offers an integrated data platform for engineering, planning, supply chain management, procurement, and customer relationship management. It supports the specific business processes within all types of automotive companies, including original equipment manufacturers, suppliers, importers, distributors (wholesale and retail), and service outlets. Additionally, Hyundai will be set to process simultaneous inquiries from automotive dealers about service parts and accessories using mySAP SCM, designed to seamlessly and automatically handle requests. Hyundai's business partners will be able to execute transactions directly in the SAP system and employees and partners can utilize a virtual warehouse to find out which service parts and accessories are in stock and where they are located in the supply chain.

"SAP is going to play a key role in helping Hyundai reposition itself as a leading global automotive manufacturer," said Nils Herzberg, senior vice president, IBS Manufacturing & Distribution, SAP AG. "This agreement is a leading example of how SAP's global footprint can be put to work to solve a customer's need through the collaboration of services provided by SAP Korea, SAP America, and SAP AG. For more information on mySAP Automotive, please see:

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