Electrical grid problems disrupt operations at Hyundai engineering center in Superior Township
Hyundai is experiencing electrical problems at its 200,000-square-foot tech center in Superior Township.
File photo | AnnArbor.com
Executives from Hyundai are working with DTE Energy and the Michigan Public Service Commission to address the electrical problems, but fixing the issue might be costly.
Brief fluctuations in voltage - it can be a spike or a reduction lasting a split second - is causing havoc for some of the new machines used to conduct tests on vehicles at the engineering complex, said Mark Torigian, general counsel for Hyundai America Technical Center Inc. The 200,000-square-foot tech center is experiencing the issue because it is connected to a 40-kilovolt system instead of a 120-kilovolt system, which provides more stability. Over the last year or so, voltage fluctuations have occurred 30 to 40 times, Torigian estimated.
“A homeowner won’t even notice it because it happens and it keeps going,” Torigian said. “But we have such sensitive test equipment - when we get one of those, it shuts our whole facility down. Our equipment has been damaged, and we’ve lost time.
“When you’re doing a five-day test and it breaks down, you’ve got to start the test all over again.”
Torigian said the voltage fluctuations have caused five full days “where the power has turned off and we had to let all the employees go home.” About 175 employees work at the Hyundai complex, which opened in 2005.
The problem is exacerbated by the fact that computer servers for several Hyundai facilities across the U.S., including engineering sites in California and Nevada, are located at the Superior Township site.
The power disruptions shut down the servers and levy a “serious effect on the whole company,” Torigian said.
DTE Energy spokesman John Austerberry agreed that instability was causing a problem for Hyundai.
“A lot of the equipment they’ve installed in the last couple of years is very sensitive to voltage fluctuations,” he said.
He said the utility is actively communicating with Hyundai to identify a fix for the situation.
“We do have people working with them. They’re an important customer to us, we appreciate, frankly, their investment in this region and we are working with them to resolve these problems,” Austerberry said.
Torigian said Hyundai was concerned about an early estimate suggesting that the fix would require a “major rework” and cost up to $2 million.
DTE said it was too early to offer an estimate on how much it would take to rectify the electrical problems.
But Austerberry suggested that the problems could have been avoided.
“We started working with them frankly before they put a shovel in the ground,” he said. “Actually at the time, even before they put in the equipment that they have in the last few years, we recommended that they establish a 120kv service. They chose to install a 40kv service.”
Torigian said DTE’s claim was “probably true” but that Hyundai invested more than $1 million for DTE to install a transformer at the site when the facility was constructed. He said Hyundai needs a fix immediately.
“It’s really a critical issue,” he said.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
Comments
JJ
Sun, Nov 14, 2010 : 11:04 a.m.
I don't recall Hyundai doing much for or giving back to this community (corporate citizenship....) They should have installed the necessary backup devices / generators, etc... to run thier "nerve center" in the event of brwon/black-outs. Stop complaining and act. Anyhow, yea, they are here taking advantage of their free pass to sell sell sell to the masses who doen't see the forest for the trees. All of Hyundai profits go back to Seoul and to the pockets of the fat cats there. More about the classy folks running the company: South Korea has long been dominated by the chaebol, powerful business families whose vast conglomerates (such as Samsung and Hyundai Motor) have been the engines of the country's economic miracle and have significant stakes in most of its major industries. Their fingers in many pies, the chaebol also wield great political power and at times have seemed above the law despite numerous allegations of corruption. In 2007, Chung Mong Koo, Hyundai chairman, was found guilty of fraud and embezzlement, having siphoned some $100 million into a slush fund allegedly to bribe officials. His trial was hailed as a victory for transparency and rule of law in South Korea but Chung's three-year jail term would be suspended, and in 2008 he received a full pardon from South Korean President Lee Myung Bak. Hmmm, I smell BOYCOTT.
wereintroubl
Sat, Nov 13, 2010 : 2:04 p.m.
If Hyundail does not like it they can move.
Gorc
Sat, Nov 13, 2010 : 7:12 a.m.
@L.C. Burgundy - the old tired argument from the '80's would revolve around quality. The current point of view is about fair trade. The population of South Korea is a non issue. Their government is restricting the number of foreign automobiles allowed to be sold....we do not restrict them in kind. I am ok with foreign investment in the U.S. and foreign products being sold in the U.S. I am concerned with a level playing field to compete on.
Cash
Sat, Nov 13, 2010 : 4:39 a.m.
I am going to contact both our Superior Township board members (we truly do, in my opinion have a Superior board) and also our elected representatives for the area. As citizens we can complain to DTE until the cows come home but we are ignored. Perhaps some clout from our board and from our representatives in Michigan and DC can give us some more clout. Knowing that I am not the only one with this problem, I hope all of us stick together and bombard our elected officials until we get some results from DTE.
L. C. Burgundy
Sat, Nov 13, 2010 : 2:16 a.m.
Hyundai is lucky to be the size that they are. If you contact DTE with electrical infrastructure issues outside of a total power outage or you have interest in getting infrastructure upgrades and you are smaller than the tech center, you are completely and totally ignored. And by completely, I mean literally everyone from the ground up at DTE actually ignores you and will not even return a call. I have lived in several places, and DTE has got to be the surliest utility around. Oh, and all the trade hysteria brought up in this thread about the evils of buying Korean is ironic given the entire story is about the LOCAL HYUNDAI tech center, which is LOCAL. (Psst, they also have manufacturing facilities in the US.) Come on, at least update your tired rhetoric from 1980. American SUVs and light trucks don't sell well in Korea, a country with 1/6 the people as us in an area slightly larger than Indiana. Golly gee whiz, I wonder why!?!
wereintroubl
Sat, Nov 13, 2010 : 2:03 a.m.
Who cares- if Huyndai does not like it they can leave. The idiots in the state government were too dumb to see that the only reason why Hyundai and Toyota wanted tech offices in this state were to lure away engineering talent- as well as their ideas- from Ford, GM, and Chrysler. Hyundai and Toyota then turn around and build vehichles in every other state but Michigan. The state should have given tax breaks to these little techical offices predicated on them building a manufacturing plant in this state to replace the manufacturing jobs that were lost from the Big Three. However, Granhol, et. al, are too naive to see this.
AlphaAlpha
Fri, Nov 12, 2010 : 11:28 p.m.
Further negotiations will succeed only if South Korea adopts concrete steps to open its market to U.S. exports As per recent postings, it is all about the trade agreements. Could it be that the US will finally negotiate a fair trade arrangement? Doubtful. PS - only Mr. Bomey knows for sure, but based on what was written, it seems likely that it was Hyundai lawyer Torigian who contacted A2.com to complain about Hyundai's inadequate electrical investment, er, power issues.
stunhsif
Fri, Nov 12, 2010 : 11:07 p.m.
@Gorc and EyeHeartA2, right on guys regarding whether Ann Arbor area residents drive U.S. based automobiles or foreign cars like Hyundai. My guess EyeHeartA2, to answer your question as to what kind of cars the vendors at A2 Farmers Market drive ( they preach grow local--buy local), I bet they drive mostly foreign made cars. Look at all the prof's at the U of M that drive Subaru's ( would not catch me dead in one of them--image issue ) or Volvo's,Honda's and Toyota's. Don't bring up the fact that some are built in the U.S. as the profits still go back to their countries of origin. These folks are a bunch of hypocrites. They say they are pro union and want to buy local but they buy Japan, Korea and Sweden. As a hard core conservative who truly disdains unions, I have bought or leased 11 G.M. vehicles over the past 20 years because I know it makes sense to keep my money in this state when I have a choice. I have no choice when buying my electricity but I do when buying a car. Good Day No Luck Needed
DonBee
Fri, Nov 12, 2010 : 9:03 p.m.
The article should read 40KVA and 120KVA, sizing for transformers. A 120KVA would provide about 1000 amps of typical household power on each phase. The 40KVA one a third of that amount. I have a feeling that more than just a transformer was at issue here with the larger size. I suspect that reconductoring would have been required from the substation to the Hyundai location, that would account for the $2 million dollar price tag, easily. I suspect that DTE was going to eat part of the real cost. DTE again bought this infrastructure and it was not what they would have designed. Add the number of large homes and sub-divisions in the township in the last 20 years, then add the increase in air conditioners, home theaters and other uses we put electricity to in our homes and they are playing catch up. In 1950 the average electrical service to a home was 60 amps, in 1980 it was 100 amps, and in 1995 it was 200 amps. In 2005 the last date that I have data for it was 250 amps. I would not blame it on DTE, I would look at the facility engineering firm or the architect that Hyundai used. I work in areas that have far worse service than Superior Township. We are relatively lucky, because so much of the system is overhead, meaning it can be upgraded for a reasonable cost. Toronto is starting down a first phase of upgrade for their system, since their system is underground, it will cost 8 to 10 times what it will cost DTE. Oh, by all means call and speak to a human at DTE anytime the power flickers. The only way they know you have a problem is if you call. You are their only sensor, only way of knowing they have a problem.
Gorc
Fri, Nov 12, 2010 : 9:01 p.m.
How many of you are aware that the South Korean government only allows 10,000 U.S. vehicles to be imported each year? Is this fair trade?
Julius
Fri, Nov 12, 2010 : 7:48 p.m.
They don't have any UPSs? Am I just not understanding?
Michael-David
Fri, Nov 12, 2010 : 6:28 p.m.
While DTE has automated its system for taking reports of power outages, DTE still has no system for taking reports of short outages and power fluctuations. We've made many complaints over the years with little or no result. They have tree trimming standards that they have not followed and once again, the trees are touching their power lines. The only solution is to buy working uninterpretable power supplies (UPS) and for longer outages, having a working generator standing by.
Faith
Fri, Nov 12, 2010 : 5:26 p.m.
@dading: I'm just down the road on LeForge and I *have* noticed lots of fluctuations in the past year or so. It was really bad a couple of months ago when I was in brown-out conditions for days twice in a two week period. So yes, this "average homeowner" certainly does notice it! We had hoped our service would get better with Hyundai being on our road/grid. But alas it has not gotten better, only worse. And yes, I've filed, but nothing ever seems to happen...
JJ
Fri, Nov 12, 2010 : 3:08 p.m.
Ohhhh I feel so bad for poor little Hyundai. Hyundai (a Korean Company) comes to this country freely with little or no restrictions to sell their product. But, we, USA auto manufactures, can not easily if at all, sell our product (autos) there (for every 52 Korean cars sold in the U.S. only one American car is sold in South Korea.) Wake up people (especially those buying the Korean auto products.) What's the familiar jingle around these parts, buy local / grow local... Let's try applying that to MANUFACTURING too and help get this country back in the game. We do have the product and the quality and the competitiveness. Finally, the inside scoop on the Superior Twp facility...: the Korean execs there are "old-school" / "old-country" and are not partial to taking direction / advice from any of us "domestics. Ha. TODAYS NEWS - Related to this subject: No New Free Trade Agreement Reached Between U.S. and South Korea Detroit Free Press WASHINGTON President Barack Obama wont be returning from his Asia trip with a renegotiated free trade agreement between the U.S. and South Korea. Concerns over barriers to American automakers selling more vehicles in that country remain a point of contention. The Obama administration had hoped to reach a deal on the free trade agreement first settled in 2007. That deal was never formally approved by either nation, and congressional Democrats particularly those in the House had balked because of concerns that U.S. automakers still couldnt compete on equal footing in South Korea. This week, Chrysler Group LLC joined Ford in opposing the deal as written. Last week, Ford took out a full-page ad claiming that for every 52 Korean cars sold in the U.S. only one American car is sold in South Korea. Obama administration officials said they will continue working in the months to come to reach a deal on the free trade agreement, which U.S. Chamber of Commerce President Thomas Donohue said could cost up to 340,000 jobs unless it is settled. We understand that progress was made and differences have been narrowed, Donohue said. We urge both presidents to direct their ministers and staff to resolve remaining details with the greatest possible speed and urgency. With Republicans taking majority control of the U.S. House beginning in January, it was believed that a free trade agreement with South Korea would have a much easier chance of passage. But there were some indications Thursday that there could still be hurdles to cross. In a joint statement, current House Ways and Means Chairman Sander Levin, a Royal Oak Democrat, and his presumptive replacement, Republican Dave Camp of Midland, said Further negotiations will succeed only if South Korea adopts concrete steps to open its market to U.S. exports including autos. While there are other unresolved issues, nowhere is this more evident than in the dangerously lopsided trade in automotive vehicles, the two said. In 2009 alone, South Korea exported more than 476,000 autos to the U.S. while fewer than 6,000 U.S. vehicles managed to get through Korean trade barriers.
Peter
Fri, Nov 12, 2010 : 1:59 p.m.
my power flickers every few days or so..
Rob Pollard
Fri, Nov 12, 2010 : 12:25 p.m.
Cash, I agree with your points. I'm guessing they wanted a bucolic "campus" and since that area of Geddes was/is so undeveloped, they could do what they want. I'm glad they located their tech center in SE Michigan, but I do wish companies (and housing for that matter) were encouraged (by zoning? tax breaks? development approval?) to utilize better, already built 1) roads (Michigan Ave is much wider than Geddes) and 2) utilities (see this whole discussion). Even in Canton where there is a lot of development, there was (and still is) enough wide open land to build pretty much whatever you want. Regarding the secretive cars, that's a good point. About once a month in the Geddes/Leforge area I see a mule car covered in black tape driving around, so maybe they like that it's a bit more remote. I can't say how important that is. As you & others noted though, it seems they didn't plan this right, wherever it got located, but perhaps it would have been easier on them in a more developed area. Hope this gets figured out (for the residents sake, as much as anyone else).
treetowncartel
Fri, Nov 12, 2010 : 12:02 p.m.
This article is very informative and so are the comments.I am hoping to look for a new house in a few years and will definitely avoid looking in this area.
OnTheRight
Fri, Nov 12, 2010 : 11:35 a.m.
As a resident in that area who actually DOES notice all of those power outages (and I have made a formal complaint to DTE), it is infuriating to read the Hyundai rep's ignorant comments about how minor the disruptions are to residents. I am wondering if Hyundai is drawing too much power and causing the outages for the rest of us! They should have done the right thing when they built that ugly behemoth of a building and upgraded their power service! Why should the residents suffer because of their lack of foresight!
Cash
Fri, Nov 12, 2010 : 11:06 a.m.
Rob Pollard, I would assume that Hyundai was looking for a more private and pristine environment. Did you ever see the vehicles driving in and out of there? Wow! Some stuff looks like moon landing material! Some of the vehicles they use to test with are, shall we say unique! They may not want a huge public presence near this facility. However, if it was truly their choice to install 40kv service, they may have made that mistake anywhere they built. Who knows?
say it plain
Fri, Nov 12, 2010 : 11:05 a.m.
@EyeHeartA2, thanks;-) It's clear that I am no engineer lol, but the Hyundai people are, and should have worked all this out before it somehow became fodder for a story implying that there is yet another 'problem' for businesses locating here. Does the governor-elect have some sort of scheme for fixing this scene, because apparently even successful and profitable corporations don't want to address potential issues with their utilities, even when warned ahead of time by the providers.
Rob Pollard
Fri, Nov 12, 2010 : 10:50 a.m.
Cash, to be specific: Between I-275 and Denton on Michigan Ave, there is probably 10x more development, incl car dealerships, warehouses, Home Depots, etc, along with a huge corporate park site that has been empty (i.e., ready for a new building) for close to 10 years (operated by Singh). I'm going to guess there's more developed/stable electricity in Canton(see map, http://bit.ly/a9aodc) than where Hyundai decided to go, which has basically seen no offshoot development in the years since it was developed (see all the forest/fields, and hardly anything else, on this map, http://bit.ly/cBloH5) Hyundai decided to go basically go in the middle of nothing. Stands to reason there is less developed electricity here. That said, as mentioned by previous commentors, it seems Hyundai could pretty easily solve this with a bit more planning/investment.
Cash
Fri, Nov 12, 2010 : 10:22 a.m.
Rob Pollard, You think that Canton has had less recent development of cornfields and thus has more power available? Good grief. And as for Ypsilanti Township on Michigan Ave....it's hard to picture Hyundai out there among the condemned trailer parks and so on. I don't think that area is prime for a world tech center.
Cash
Fri, Nov 12, 2010 : 10:18 a.m.
timeatwork, I have questioned a lot of stories here...but to me this one is very much newsworthy. This company is vital to Superior Township and thus, we are interested in their situation. They are our neighbors.
Rob Pollard
Fri, Nov 12, 2010 : 10:07 a.m.
Maybe they should have located their building farther east on Michigan Ave in Ypsi Township or Canton, where the electric supply was more established, instead of building a green field development in the middle of nothing. This doesn't say much for Hyundai's planning processes.
King
Fri, Nov 12, 2010 : 8:53 a.m.
Just food for thought.... If Hyundai is too cheap to upgrade their own facilities..whats to say they don't cut corners on their cars????
Brad
Fri, Nov 12, 2010 : 8:51 a.m.
"The problem is exacerbated by the fact that computer servers for several Hyundai facilities across the U.S., including engineering sites in California and Nevada, are located at the Superior Township site. The power disruptions shut down the servers and levy a serious effect on the whole company, Torigian said. " A "split second" power problem takes their servers down? Ever hear of uninterruptable power supplies (UPSs)? It's what everyone in the world uses on their servers. If they don't have them they should get them. If they do have them they should get ones that work instead.
StarZone
Fri, Nov 12, 2010 : 8:49 a.m.
@runbum03: It does not matter how many power plants there are in the state if the Superior Twp area is on a 40KV system when it needs a 120KV because of increased growth. Plus, a lot of our power comes from outside the state so what Michigan does with the number of power plants does not matter, per se, if construction is occurring elsewhere (Indiana, Ohio, NY).
A2comments
Fri, Nov 12, 2010 : 8:24 a.m.
I don't understand why this is a story? Did DTE notify AnnArbor.com? Did Hyundai? It appears that the parties have been working on a solution, so why is this news? Especially if Hyundai didn't follow recommendations for what to have installed?
MK
Fri, Nov 12, 2010 : 8:09 a.m.
I live near geddes and prospect and it happens to me occasionally
stunhsif
Fri, Nov 12, 2010 : 8:08 a.m.
The number of power outages we experience in southeast Michigan is a joke. I moved to Michigan from Utah in 1972 and was amazed to see that all electrical lines are above ground. In Utah you almost never saw power lines because most of them are underground,making them less subject to outages. DTE makes a ton of money, they need to put some of that back into proper maintenance. Hyundai makes billions in profits. It would seem they could install some kind of system that would regulate the voltage coming into their facility if their equipment is that sensitive to minor surges in the voltage. Seems to me that Hyundai is stepping over a dollar to pick up a dime.
timeatwork
Fri, Nov 12, 2010 : 8:07 a.m.
I'm not sure why this is a story... Its true that Superior Township has far too many power losses. But to somehow connect that to power quality problems for one industrial customer is absurd. far too many people will draw incorrect conclusions from this story who have no idea the procedures and planning that goes into providing power to this type of customer.
Cash
Fri, Nov 12, 2010 : 7:48 a.m.
runbum3, The needed power was available....Hyundai chose not to opt for it! Sorry but blaming Granholm for that is ridiculous....unless she's being accused of running Hyundai.
Ignatz
Fri, Nov 12, 2010 : 7:46 a.m.
This Grandholm must a be a powerful entity.
runbum03
Fri, Nov 12, 2010 : 7:40 a.m.
Granholm killed 8 planned power plants. What the *ell do you expect? Enjoy your sustainable poverty.
say it plain
Fri, Nov 12, 2010 : 6:57 a.m.
The Hyundai spokesman said "...a homeowner wouldn't even notice it", implying I guess that homes connected to a 40V service wouldn't notice the problems because they're not running sensitive equipment. I love the "probably true" reply about a factual claim lol; i.e. that DTE recommended to Hyundai that they spend the money to establish 120V service but they chose not to. Even with the extra they presumably spent on a transformer, if DTE were suggesting that the lower V service might cause problems for them, why didn't they consider *not* cutting corners with a critical operation? I hope the cost-benefit analysis looked thorough on this issue, because it doesn't look so good from outside the company...
DonBee
Fri, Nov 12, 2010 : 6:52 a.m.
The whole area in Superior Township grew rapidly in homes in the 1990-2008 time period. Many people see short outages and power fluctuations. Most don't notice, unless they have clocks that need to be reset in the evening.
Cash
Fri, Nov 12, 2010 : 6:51 a.m.
Hmmm...as a Superior Township resident losing power often and being given every excuse possible....perhaps this explains it. My employer based in another state is horrified at how often we lose power here and wondered why....perhaps now I can give him an explanation other than the weak ones given to me by DTE.
dading dont delete me bro
Fri, Nov 12, 2010 : 6:35 a.m.
have the disruptions only been at hyundai? the homes in the area too?