Naked Ambition

Naked Ambition

DIGGERS & DOZERS

Equipment manufacturer Hyundai is targeting a Top 5 position in the European market and has invested heavily to make this lofty ambition a reality. Mark Anthony reports from the company’s new European headquarters in Tessenderlo, Belgium.

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There is a large part of the first floor of Hyundai’s relatively new 81,000 m2 European headquarters that sits silent and empty; strangely at odds with the busy 10,000 m2 equipment demonstration area located close by at which excavators track and slew and wheel loaders dart hither and thither. But a large empty office suite is not a sign of a company in decline. Rather, it is an indication of a company’s ambitions for growth and expansion. That office space is not presently required. But if the company achieves even a fraction of its lofty ambitions, it most certainly will be.

Beyond Criticism A decade or so ago, construction and demolition equipment manufactured in South Korea was largely looked down upon. Perhaps unfairly, it was labelled as lower quality than the machines built by some of their European rivals. Questions were asked about equipment reliability, the availability of parts, the responsiveness of aftersales service, and residual values.

By embracing technology, reducing engine emissions and laying to rest concerns over machine reliability, those Korean manufacturers have largely moved beyond such criticisms and it is now the turn of the Chinese manufacturers to have their quality called into question.

DIGGERS & DOZERS

Same as it ever was. In the late 1980s and early 1990s, Japanese manufacturers were the target of similar criticism. Just a few decades on and the likes of Komatsu and Hitachi are seen not just as quality manufacturers but as recognised leaders in their chosen field.

So when Hyundai states that it is aiming to be one of the construction equipment market’s Top 5, we dismiss such bold ambitions at our peril.

Little to Choose Although equipment manufacturers will unquestionably tell you otherwise, there is very little to choose between most excavators on the market today. And for good reason. Many share the same or similar engines, transmissions and hydraulic system; some even originate from the same factory but are sold in different colours and with different badges.

Often, the key differentiator – the things that mark a premium brand from a medium one is a matter of the bells and whistles; the little extras. Yet even those are remarkably common today. Most excavators above a certain size have air conditioning as standard. Most are offered with a variety of standard, comfort and fully adjustable seats. Some are offered with the peace of mind of telematics systems that monitor functions such as hours worked and fuel consumption, that identify faults before they evolve into costly downtime, that optimise service intervals and help minimise unplanned downtime. Caterpillar has all these things. Komatsu has all these things. So does Liebherr and JCB. And so does Hyundai.

Indeed, sitting in one of its excavators, you could be

mistaken for thinking you were in what could be described as a “high-end” machine. Because you are.

Here in the UK, these machines are sold and supported by reputable and longstanding dealers such as Molson and Ernest Doe; firms that don’t just move metal but which also have a reputation for being able to look after it once it’s sold too.

Justifiable Confidence Hyundai recognises that it is at the beginning of a journey and that it has many obstacles and long-established objections and perceptions to overcome before it can truly take its position at the industry’s top table. But the whole company exudes a swagger and a confidence not normally associated with an organisation playing catchup with more established rivals. The new European headquarters represents a significant investment; the kind of investment companies only

make when they are certain of themselves. The dealers it has appointed speak to a desire for pre and post-sale credibility. And the build quality and constant evolution of the machines themselves show a company that has come a long way and yet which remains eager to improve.

Perhaps the greatest example of the company’s current confidence is its willingness to throw open the doors of its European headquarters to dealers and customers alike. “At Hyundai Construction Equipment Europe, we believe the best way to feel the Hyundai effect is to meet with us and exchange experiences,” says Paul Sysmans, Marketing Manager Europe at HCEE. “Our intention is to offer our customers, prospects and dealers a total and unique company experience that goes beyond traditional trade shows. A vital part of the customer journey is the machine experience. The only way to

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DIGGERS & DOZERS

know how Hyundai equipment will perform at a jobsite is to put it at work.”

For all its unquestionable confidence and ambition, Hyundai is under no illusions about the challenge ahead. If it is to be accepted as one of the industry’s Top 5 manufacturers, it will need to overtake some seriously good and wellestablished rivals.

However, as I said previously, it is just a few years ago that the likes of Komatsu were being dismissed as enthusiastic upstarts. The path that lies ahead of Hyundai climbs steeply and is fraught with dangers. But it is a path that has been trodden before. And it would take a brave man to bet against it being trodden again.

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