Just days after the mighty Hyundai Motor Group reportedly shuttered its combustion-engine R&D division, a fresh report suggests work on its third-generation hydrogen fuel-cell technology has been halted.
According to Korean newspaper The Chosun IIbo, just a matter of months after HMG presented its Hydrogen Vision 2040 an internal audit carried out by the company revealed that it would fail to meet targets to slash the costs of the technology.
Unlike its combustion R&D department, the reports suggest Hyundai has not completely abandoned its fuel-cell work, but that the company which produces Hyundai, Kia, Genesis and the IONIQ cars has pressed pause.
According to insiders, work was already well underway on the development of a hydrogen-powered Genesis flagship that was scheduled to launch in 2025.
It's not known how that car's gestation will be affected but it's thought it could be hit with big delays or might even be cancelled.
The reason for the huge rethink of its fuel-cell strategy is said to be related to undisclosed technical issues, plus the general problem of hydrogen-powered cars' general 'lack of marketability' that is not helped by almost non-existent infrastructure.
In the short-term, the R&D division working to develop FCEVs has been reorganised, with the number of engineers involved in the zero-emissions tech "greatly reduced".
As recent as this September Hyundai revealed its Vision FK concept for a fast two-door coupe that boasted a 500kW powertrain, 600km range and the capability of sprinting from 0-100km/h in less than 4.0 seconds.
Originally, it was thought Hyundai Motor Group's pioneering hydrogen fuel-cell division was safe from what's been described as the car-making giant's most radical reorganisation of its R&D operation in its history. But that seems not to be the case.
The reported motivation behind the huge shake-up is that bosses want its 12,000 engineers and R&D personnel at its Namyang Research Institute redeployed to refocus on bringing EVs to market far quicker than it can today.
Hyundai has also opened a new Battery Development Center to bring the development of lithium-ion cells and next-gen solid-state batteries in-house to reduce its reliance on third-party suppliers.
Further streamlining has also occurred to cut internal red tape, plus unification of internal teams to improve communication.
In the pipeline, the Hyundai Motor Group plans to launch its IONIQ 6 in 2022, followed by the larger flagship IONIQ 7 SUV in 2024.