With Hyundai Motor chairman Chung Mong-koo behind bars, concern is spreading among the car maker’s representatives, including those in China, about their and the company’s future.
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“Should South Korea maintain its stiff stance against Hyundai Motor, the car maker could be handed over to overseas investors,” Zhu Ling Jun, Beijing Hyundai sales branch CEO told The Korea Times on Sunday.
As the owner of the largest of 14 Hyundai Motor dealerships in Beijing since 2003, Zhu has long been attached to Korean cars – since his time in the 1990s as an engineer with Daewoo Motor Sales – now GM Daewoo Auto & Technology.
According to the paper, Zhu alleges the Hyundai Motor scandal, involving the prosecution’s investigation, has been based on political manoeuvring, rather than on corporate ethical breaches.
“It is really regrettable the Korean prosecution has dealt harshly with few of the leading conglomerates of the country, he said. “Tough probes will downgrade the national image.”
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By GlobalDataHe cited cases of investigation into enterprises in China, stressing a Hyundai-style case would not be found there.
“The Chinese government could close down the business of a company with poor financial status or critical wrongdoing. But it does not deal with prospective companies, like the Korean prosecution (or government) does,” he told the Korea Times.
His anxiety also lies with the frustration of employees in the wake of Chairman Chung’s imprisonment. He contrasted the situation between his meeting with Chung during the groundbreaking ceremony for the second Beijing Hyundai plant in April and now.
“Due to Chung’s absence, the construction of the second plant has faced setbacks,” Zhu added.
Hyundai Motor was aiming to provide over 600,000 made-in-China vehicles to consumers there when its second factory in Beijing begins operating as early as 2008. But current conditions for the goal are unfavourable.
It also formerly planned to increase the number of dealerships from the present 300 to 500 across China to meet surging sales in the world’s fastest growing market.
Zhu told the paper he chose Hyundai Motor as he was fascinated by the company’s large-scale, aggressive management style which is different to that of Toyota Motor.
“Toyota decides on the amount of investment after reviewing its sales performance over past years,” he noted. “But Hyundai invests on its analysis of market potential.”
His dealership appeals greatly to Chinese customers by providing full-scale car-repair and maintenance services in its bid to differentiate itself from competitors, such as Toyota, Volkswagen and GM, the Korea Times said.
The paper noted that China is a lucrative market for Hyundai Motor. The carmaker plans to manufacture petrol-electric hybrids by 2008 and fuel-cell vehicles there by 2010. It has a joint venture, Beijing Hyundai, with Beijing Automotive Industry.
In its strategy to attract China’s eco-friendly car market, a hybrid version of its Accent sedan was introduced at the Guangzhou International Automobile Exhibition last December, the Korea Times added.
