The Korea Herald

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Hyundai chief stresses risk management in hard times

By Korea Herald

Published : July 13, 2015 - 20:17

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Hyundai Motor Group chairman Chung Mong-koo on Monday admitted that his company is facing hard times and called for all-in efforts to boost global sales.

“It is true that we are facing hard times in many ways, but this cannot be an excuse. We need to, and can, overcome them and become stronger by doing so,” Chung said at the meeting of representatives of 60 overseas branches of Hyundai and Kia at the company’s headquarters in Yangjae-dong, southern Seoul.

“We always need to find the solution in sales, no matter how hard the market can get. We need to let every staff member become a salesman in order to achieve our sales goal. We need to be fully prepared for the future, no matter how challenging our presence is. We should not stop trying out new things to enhance our brand values,” he said as checking on the sales records and management conditions of each office and contemplating the sales strategy for the rest of the year.

Chung‘s comments came as Korea’s largest and the world‘s fifth largest carmaker struggles against ailing sales and an even duller sales forecast amid a global economic meltdown.

Chung earlier this year set the company’s sales goal at 8.2 million units by the end of the year, but has managed to sell only 3.92 million in the first half. Hyundai and Kia cars have especially suffered in the Chinese and U.S. markets pricewise, compared to the lowered price of Japanese cars from the weaker yen effect. Hyundai’s best-selling compact car i10 has also been seen as “old-fashioned” since being introduced in the European market in 2007.

“Chung has called for tighter quality control on all cars including the New K5 and the New Avante scheduled to be introduced to the U.S. market later this year and early next year, respectively. He also called for aggressive promotion for steady sellers in Europe,” a Hyundai insider said.

By Bae Ji-sook (baejisook@heraldcorp.com)