The Acquisition and Restructuring of Kia Motors by Hyundai Motors

In recent years, increased competition and lower profits due to excess national and global supply, as well as higher development costs, have led the automotive industry to undertake national and international strategic mergers and collaborations. This case examines one of the largest mergers and acquisitions in the Korean auto market in recent years: the acquisition of Kia Motors (Kia) by Hyundai Motors (Hyundai). The case describes the framework conditions for the acquisition, the post-acquisition integration processes and the prerequisites for Kia Motors to normalize management in a short period of time. With the acquisition of Kia, Hyundai has strengthened its competitiveness in domestic and global markets, achieved economies of scale and scope, and strengthened its global market base. However, Hyundai / Kia faced several pressing challenges, including collaboration from Renault and Samsung Motors, the unclear treatment of Daewoo Motors domestically, and mergers and acquisitions between major auto companies around the world. This case study challenges students to analyze the post-acquisition restructuring process and the resulting synergies and invites them to think about the strategies Hyundai / Kia can use to succeed in the global automotive market. Furthermore, it illustrates both the current state of the domestic Korean auto industry and the latest trends in the global auto market.

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