Hyundai Motor heir vows to make drastic changes
Hyundai Motor Group Executive Vice Chairman Chung Euisun said Tuesday the world’s No. 5 automaker has been “stagnant” regarding innovation over the past decade, and will work towards more drastic changes in years to come.
He also said cars will account for 50 percent of the group’s portfolio, private air vehicles will take 30 percent and the remainder will be for the robotics business, saying the group will not remain as a carmaker but become a mobility service provider.
Chung made the remarks during a surprise visit to an employees’ town hall meeting at the group’s headquarters in Yangjae-dong, southern Seoul. Industry officials said the meeting is an example of the group, known for its rigid corporate culture, becoming more open to communication under Chung’s leadership.
“The group has been seeing changes since its establishment, but I believe the pace of change has been stagnant over the past 10 years,” Chung said. “Global market trends are changing quickly but we have been slow in changing ourselves to keep up.
Thus we need to make more drastic changes, and all of those changes should be aimed at better performances.”
During the town hall meeting,
Chung exchanged questions and answers with 1,200 employees, shared his ideas on running the group and answered casual questions about his personal life too.
“I believe efficiency is the most important factor in work,” Chung said. “A company has to make a profit while serving a lot of responsibilities. Thus, it has to be efficient and agile in doing its work.”
Since Chung become the de facto leader of the automaker, the group has made a number of changes in its corporate culture, such as abolition of the dress code and introducing a simplified pay grade system. Hyundai Motor Group officials also said their reporting protocols have become simpler and more prompt.
“I hate complex reporting protocols and don’t want complicated explanations decorated with an unnecessary PowerPoint presentation,” Chung said to an employee’s question. “I hope employees pursue a simple way of delivering messages.”
Over concerns about the future of the car industry, Chung said the world is having an oversupply of 25 million vehicles and many firms will collapse in the harsh competition for future mobility.
“So it is not about manufacturing a nice car,” Chung said. “It is important for us to roll out innovative services and solutions together with the cars, and that will make our customers choose our products.”