Hyundai dumps chief of U.S. unit

[Variance]

In second high-level shake-up, South Korean automaker taps Korean exec to lead the brand.

Christine Tierney / The Detroit News

South Korea's Hyundai Motor Co. abruptly dismissed its U.S. chief, Robert Cosmai, and appointed Korean executive Koh Ok Suk to run its fast-growing Hyundai Motor America unit.

Cosmai's departure marked the second high-level shake-up at the automaker's U.S. operations in fewer than four months.

In October, Hyundai replaced the head of Kia Motors America, Peter Butterfield, with a South Korean executive, J.H. Lee, and hired Len Hunt from Volkswagen to be the chief operating officer.

Cosmai, reached on Tuesday, said he had learned of the management's decision in the past couple of days.

"They want to be able to move in a new direction," he said.

Hyundai said in a statement Tuesday that it had ended its relationship with Cosmai and tapped Koh to "streamline the decision-making process, enhance communication and position the company for future growth."

The company did not elaborate, but Hyundai missed its U.S. sales target last year. Hyundai-brand sales grew 9 percent to 455,012 cars and trucks -- about 30,000 units short of the goal.

"The thing about the Korean culture -- they are incredibly relentless in their determination to make their numbers," said Jim Sanfilippo, executive vice president for business development at the auto marketing firm AMCI.

Hyundai, whose aggressive growth plans are closely watched by its larger Japanese rivals, aims to sell 1 million Hyundai-brand vehicles in the United States by 2010.

Industry officials familiar with the company said executives in South Korean appear to be seeking greater control over Hyundai's lucrative U.S. operations.

Koh, 52, was previously senior executive vice president at Hyundai Motor America, based in Fountain Valley, Calif., and the chief executive coordinator between the U.S. managers and officials at the company's headquarters in Seoul.

Differences between the U.S. and South Korean managers have emerged recently over strategic issues such as the pace of the company's drive to transform Hyundai into a more upscale brand.

Last year, Cosmai disagreed with the Seoul headquarters' decision to scrap plans for a Hyundai minivan on the grounds that the Kia brand already had one.

Hyundai, which acquired Kia in 1998, wants to differentiate the two brands by establishing Kia as a sporty, affordable nameplate and positioning Hyundai as a direct competitor to the leading Japanese brands Toyota and Honda.

"Bob has done a fine job of leading the company's sales efforts for five years and later serving as its president for the last two years," Koh said in a statement.

In that seven-year period, Hyundai's U.S. sales grew fivefold, bolstered by a generous warranty offer and rapid improvements in the quality and styling of vehicles such as the Sonata midsize sedan.

"In seven years we did a lot. It was a great ride," Cosmai said.

Sanfilippo said, "Bob and Finbarr O'Neill (the former CEO of Hyundai Motor America) were a terrific team."

"They ignited Hyundai in 1998. Bob was very good with detail and very good with dealers," he said.

Link: http://www.detnews.com/apps/pbcs.dll/artic.../601180352/1148

[regfootball]

"The thing about the Korean culture -- they are incredibly relentless in their determination to make their numbers,"

that's a good enough reason for me to say to everyone I know...."stop buying their cars", if they think they can just bully their way into our market without accepting that existing established competition does exist.

quite honestly comments like that makes me wish that they would fail in grand fashion. anytime i see the word 'relentless', I want to smack something....as if EVERYONE is not trying equally as hard to succeed.

we need to SMACK them down a notch or four.

we don't need their annoying 'relentless' attitude and Korean culture/business mentality imposed on our shores, messing up American families. They don't get 'free market' choice, do they?

my sister wants to get rid of her Elantra. Her 2 1/2 year old Elantra. She doesn't like it at all.....she wanted to know if I'd buy it....I said NO THANKS. the only thing its good for is delivering pizzas...maybe.

Edited January 18, 2006 by regfootball

[Hudson]

I don't think not hitting his goal is the reason he was let go. There are other reasons...more compelling reasons.

[Newbiewar]

I don't think not hitting his goal is the reason he was let go. There are other reasons...more compelling reasons.

i think this is a bad thing for hyundai... they've been doing well in the US market...

but one thing i really wish they'ed eat into Toyota's sales...

[Hudson]

i think this is a bad thing for hyundai... they've been doing well in the US market...

but one thing i really wish they'ed eat into Toyota's sales...

Hyundai's next step is, most likely, the reason for the change in executives. And this "next step" will probably eat into Toyota's sales a little bit.