SEOUL: Hyundai Motor and its affiliate Kia Motors have replaced two senior overseas executives, the parent group said on Wednesday, after the South Korean automakers posted lacklustre first-quarter global sales.
The change came as the companies, which together rank fifth in global sales, are expected to report weak first-quarter earnings later this month as they boosted incentives in the key U.S. market to revive sluggish demand for sedans and battle Japanese rivals backed by a weaker yen.
Hyundai Motor replaced its overseas division chief Im Tak-uk, while Kia Motors replaced its U.S. vice chairman Ahn Byung-mo, the companies said in a statement.
The outgoing executives will serve as advisors, the group said.
"The latest reshuffle aims at beefing up the overseas sales competitiveness of Hyundai Motor and Kia Motors," the group said in a statement.
The overseas sales of Hyundai and Kia fell about 4 percent each in the first quarter.
Hyundai Motor Group chairman Chung Mong-koo, son of the family-run conglomerate's late founder, is known for abruptly replacing executives and sometimes rehiring them.
"Hyundai has failed to forecast the rise of truck demand and instead focused on sedans. This has led to higher inventory and incentives," said Ko Tae-bong, a senior analyst at Hi Investment & Securities.
"It is Hyundai's culture that someone takes responsibility," he said.
Chang Won-shin, a Hyundai overseas sales executive, will take over from Im while Kia's U.S. manufacturing operations will be overseen by Shin Hyun-jong. Its U.S. sales unit will be headed by Shon Jang-won, who is currently in charge of Kia's Europe sales.
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