Hyundai is taking a dramatic shift in its direction by deciding to shut down its engine development team after 40 years in order to focus on EVs. The team that will be shut down had been focusing on its internal combustion engine.

Hyundai Shut Down Its Internal Combustion Engine Development Team

According to the story by Engadget, Hyundai has just announced that it has officially decided to shut down its long-running internal combustion engine development team. This is so that the automaker can focus on manufacturing electric cars.

For a longstanding 40 years, the Korean automaker has been heavily developing internal combustion engines to use in its vehicle lineup. This, however, is going to change as the company will be shifting its resources towards electric vehicles.

Park Chung-Kook's Statement on the Company's Transition

As per the Korea Economic Daily report, Park Chung-kook, the current R&D chief at Hyundai, confirmed in an email to employees that they will be shutting down the development of new engines.

As per Chung-kook, it is "inevitable" for the company to convert into electrification. He also stated that the company's own engine development is considered a great achievement, but they have to change the system to create future innovation based on the great asset from the past.

12,000 Employees Transferred to EV Powertrain Development

As per Engadget, Hyundai reportedly had a whopping 12,000 people all working on engines. These employees will now be transferred to the EV powertrain development.

As per the company, researchers are working at the engine design unit have been transferred to the electrification design center, which leaves just a few modifications to existing engines.

Park on Developing Innovative Vehicles Capable of Dominating the Future

According to salvage insurance auctions, it was stated that the powertrain system development center would be transformed into an electrification test center. The powertrain performance development center will also become an electrification performance development center.

Park also added that the immediate task is to develop innovative vehicles capable of dominating the future market. He added that the reorganization would become an important starting point for massive change ahead in the new year.

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Hyundai to be Launching a Full Lineup for Ioniq

In the past, the company has been quite reticent to commit fully to EVs. With that, the automaker remains heavily invested in hydrogen fuel cells. It is now starting to get some success with its battery-electric vehicles along with the launch of its Ioniq 5.

Engadget stated that a full lineup for Hyundai's Ioniq battery-electric vehicles is expected to follow as the company is increasingly investing in technology. To add, a lot of industry watchers already agree it will help power the entire automotive space before long.

Despite electric cars being not that accepted not too long ago, the industry has shifted, with Tesla still leading the way as it has turned into a trillion-dollar company.

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Written by Urian B.