Hyundai’s top U.S. executive resigns in management shake-up
Thu Dec 22 2016
Rachel Long (508 articles)

Hyundai’s top U.S. executive resigns in management shake-up

WASHINGTON/SEOUL : Hyundai Motor Co’s top U.S. executive Dave Zuchowski has resigned effective immediately, in the latest shake-up of the South Korean automaker’s management ranks as it tracks toward its fourth consecutive year of profit declines. The abrupt resignation comes after the replacement of Hyundai Motor’s sales chief in South Korea and its China head over the past three months, and as the firm looks likely to miss global sales targets for the second year running.

Hyundai Motor spokesman Chris Hosford declined to comment on a report in trade publication Automotive News that Zuchowski was fired for failing to meet sales objectives.

Hyundai and affiliate Kia Motors, together the world’s fifth-largest automaker by sales, once set the global pace but have been hit by a slowdown in emerging markets and the industry’s shift away from its mainstay sedans. Hyundai Motor and Kia aim to increase their combined global sales by 1.5 percent to 8.13 million vehicles in 2016. While the group’s U.S. sales are up 2 percent through November, they are dominated by lower-margin smaller sedans rather than more profitable SUVs.

“Major loss for Hyundai and it’s dealers,” said Scott Fink, a Hyundai Motor dealer in the United States, referring to Zuchowski’s departure.

Hyundai Motor America said Zuchowski has been replaced on an interim basis by the company’s general counsel, W. Gerald (Jerry) Flannery. “A search for Zuchowski’s replacement will begin immediately,” it added.

A company source said Hyundai was likely to hire his successor from outside.

Zuchowski had been chief executive of Hyundai Motor America since 2014, having joined Hyundai in 2007. He previously worked for Mazda Motor Corp and Ford Motor Co.

Rachel Long

Rachel Long

Rachel Long is our Desk Correspondent covering Stock Markets across the globe. She is based in New York


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