Hyundai Motor unveils sweeping exec reshuffle, shares surge (updated)

Hyundai Glovis

12/12/2018 04:14

* R&D president Albert Biermann first foreign R&D chief 
    * Yang Woong-chul, Kwon Moon-sik offer to leave 
    * Hyundai Motor Co shares surge almost 9 pct 

 (Recasts with more details about reshuffle)
    By Hyunjoo Jin
    SEOUL, Dec 12 (Reuters) - South Korean conglomerate Hyundai
Motor Group shook up its executive ranks on Tuesday and
appointed its first foreign head of research and development,
raising expectations of a smooth transition of power at the
family-run business empire. 
    The reshuffle, first reported by Reuters on Tuesday and
confirmed by Hyundai on Wednesday, is part of preparations for
generational change in the executive ranks at South Korea's
second-largest family-owned business empire.  urn:newsml:reuters.com:*:nL3N1YG373
    Group President Albert Biermann, a German former BMW
executive, was named head of research and development, replacing
longtime executives Yang Woong-chul and Kwon Moon-sik. The move
was seen as a significant step to bring in fresh ideas at the
Korean-dominated group.
    In all, 17 top executives were reassigned across the group
including at Hyundai Motor Co  005380.KS  and Kia Motors Corp
 000270.KS  - which together form the fifth-biggest automaker in
the world.
    The move follows the promotion of Euisun Chung in September
to Hyundai Motor's executive vice chairman, moving him closer to
succeeding his 80-year-old father, Mong-Koo Chung, as group
chairman.  urn:newsml:reuters.com:*:nL3N1X91US 
    It comes as Hyundai Motor Co battles to reverse falling
profits as a result of U.S. recall costs and weak sales in the
U.S. and Chinese markets.  urn:newsml:reuters.com:*:nL3N1X537H urn:newsml:reuters.com:*:nL4N1XW2T1 
    Hyundai Motor Co shares jumped as much as 9 percent to their
highest level since Oct. 10, while shares in affiliates like
Hyundai Mobis  012330.KS , Hyundai Wia  011210.KS  and Hyundai
Glovis  086280.KS  also rallied.  urn:newsml:reuters.com:*:nL3N1YH083
    While the announcement by Hyundai on Tuesday of a major
investment in fuel cell production also lifted sentiment
 urn:newsml:reuters.com:*:nL3N1YG247, analysts said most of the share price rise could
be attributed to the leadership changes.
    In particular, it signalled that the junior Chung was making
progress with his plans to restructure the sprawling group after
a previous plan was scrapped due to opposition from U.S. hedge
fund Elliott.
    "The reshuffle signals that the junior Chung is tightening
his grip on the conglomerate, a move which raises investors'
hopes for change," said Kim Joon-sung, an analyst at Meritz
Securities. 
        
    GIVING WAY
    In a sign that Chairman Chung's grip may be weakening, one
of his closest lieutenants, Hyundai Motor Co Vice Chairman Kim
Yong-hwan, was reassigned away from the core automaker and named
vice chairman of steelmaking affiliate Hyundai Steel
 004020.KS . 
    A person familiar with the matter told Reuters on Tuesday
that the reshuffle was "part of a generational change (the
junior) Chung is pushing for."  
    Hyundai Motor Co chief innovation officer Youngcho Chi was
promoted to president, as the automaker tries to catch up with
its rivals in future technologies such as car-sharing.
 urn:newsml:reuters.com:*:nL4N1XG1H3
    Biermann, a former BMW  BMWG.DE  performance vehicle
development official, is one of several foreign executives that
heir apparent Chung, 48, has brought into the traditionally
Korean-dominated group.
    In October, Thomas Schemera, also a former BMW executive,
was appointed to lead product planning for autonomous cars,
connected and electrified vehicles, while Luc Donckerwolke, a
former Bentley design chief, was appointed to oversee design at
Hyundai and Kia.
    The group has previously appointed new senior executives at
its overseas operations, including China and the United States.
 urn:newsml:reuters.com:*:nL3N1X91US  urn:newsml:reuters.com:*:nS6N1TD011

 (Reporting by Hyunjoo Jin, additional reporting by Joori Roh
and Yuna Park; Editing by Stephen Coates)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))