The Hyundai Galloper Shinhwa, Myth and Legend
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
Hyundai Galloper
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.
1991 Seoul Hyatt Launch
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 fourwheel 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 X100 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. Link to 1991 Korean language Galloper TV Ad
Galloper on tour in the UK
Record Sales and the Galloper shinhwa Hyundai Precision’s bold sales and promotion strategy continued to prove highly successful. In fact, within the company the Galloper shinhwa myth and legend spread… fueled by an uncanny five-fold increase in sales between 1997 and 1998. Within a broader context and adding to the legacy this success occurred during the devastating 1997 Asian economic meltdown, commonly referred to as the IMF Crisis. In contrast at the same time the highly anticipated launch of the Samsung’s automotive division, in an alliance with Nissan, proved dismal. By 1999, Chung Mong Koo would assume control of Hyundai Motor Company. In addition to his leadership role of HMC, plus another five of the Group’s companies including Hyundai Precision, the car division also acquired Kia Motors. Soon after to consolidate, Galloper production was moved to Hyundai Motor. By 2000, amid a restructuring of the Hyundai Motor Company and its affiliates, Precision’s name was changed to Hyundai MOBIS.
In 2003 after a successful 12-year run, the Hyundai Terracan succeeded the Galloper. What does remain is the Galloper shinhwa, a legacy we see today into bold and new ventures by Hyundai leadership with Genesis Motors Company in the premium luxury car segment and a wide range of Hyundai eco-cars. About the Author Know by many as “ The Hyundai Whisperer,” Don Southerton has a life-long interest in Korea and the rich culture of the country. He has authored numerous publications with topics centering on workplace culture, new urbanism, emerging premium and upmarket trends, and entrepreneurialism. He is a frequent contributor to the media (WSJ, Forbes, CNN Fortune, Bloomberg, Automotive News, Korea Times, Korea Herald, Yonhap, Korea Magazine, eFM TBS, FSR and The Economist on Korea facing business and culture. He heads Bridging Culture Worldwide a Golden, Colorado based company that provides mentoring, strategy, and consulting worldwide to Korea-based global business. Question and comments? questions@koreabcw.com © BCW 2016 Photographs courtesy of Hyundai MOBIS Seoul, South Korea