My Way or the Highway at Hyundai
03-11-08, 01:03 PM
#16
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And of course, the first post only highlighted the negative things in the article, leaving out things like:
While Chung's top-down management style might rub some Americans the wrong way, his long-term track record in the U.S. is impressive. Under his leadership, Hyundai has nearly doubled sales in the country since 2000, to 467,000 cars last year. Kia has posted almost identical growth.
No other car company has come close to matching this growth. Hyundai will no doubt face challenges and sales slumps in the future, and hopefully, they'll adapt and reach the next level. Every company, including gasp, holy Toyota, has faced snags and slumps. We'll see what happens with Hyundai.
If they fail, then too bad. One thing though. Hyundai is much further along twenty years into the American market (and in a much more competitive landscape) than where Toyota was twenty years into the American market.
Everybody knows how much Hyundai has grown and changed over the past few years. This has been discussed thoroughly in the automotive press and even here at CL.
But very few actually know about the things this article mentions. Even I learned a great deal from this article, as I did not realize their authoritarian corporate culture was that bad. I'm sure that many other people did not know the relationship with dealers and management here in the US is that bad with top management in Korea.
Toyota from 2000 to now has also come close to doubling it's sales, which is not even comparable to Hyundai since Toyota has much higher volumes. The higher your volume, the tougher to increase sales percentage-wise.
The article also did mention that Hyundai's growth has slowed. Also, it depends what you mean by "much further" when compared Toyota in the US after 20 years and Hyundai. Let's not forget a big percentage of Hyundai sales go to fleets right now. Hyundai in some ways has "forced" this growth to occur, with fleet dumping for instance. Hyundai did it just this past December with a huge fleet dump of Sonatas to boost 2007 sales. Toyota never did that at 20 years in the US market and Toyota does not do that even now.
Yes, obviously every company has faced struggles. This is nothing new, and this has nothing to do with the article or this topic. Very few companies have such a shocking authoritarian or "feudal" management style. After reading the article, it's amazing that Hyundai doesn't have more problems right now.
Also you can look at it this way; if the management is really bad, and US management and dealers become frustrated and angry, that could lead to poor service and poor customer support which would definitely affect the end consumer.
Last edited by TRDFantasy; 03-11-08 at 01:08 PM.
03-11-08, 01:46 PM
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But very few actually know about the things this article mentions. Even I learned a great deal from this article, as I did not realize their authoritarian corporate culture was that bad. I'm sure that many other people did not know the relationship with dealers and management here in the US is that bad with top management in Korea.
While neglecting quotes like: Even some of the executives who have departed praise the companies' management culture. "Being aggressive doesn't make them bad," says Robert Cosmai, who was CEO of Hyundai's American unit for two years before getting fired in January, 2006.
"I can see where Americans would feel uncomfortable," says Alice Amsden, a professor of political economy at the Massachusetts Institute of Technology who has written books about Korea and other developing Asian economies. "American management is used to a different style. But Hyundai deserves a lot of credit."
It's a different management style. So far it's gotten results. Just because it's different from American or Japanese management styles doesn't make it any inferior.
In fact, Hyundai's management style is representative of Korean mentality as a country. And what has been the result of that mentality in the past 50 years? Only the biggest 50-year economic boom by any country in history.
03-11-08, 01:56 PM
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03-11-08, 02:02 PM
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A case in point is Samsung. Samsung is even more "feudalistic" than Hyundai. Twenty years ago, Samsung was nothing compared to the likes of the Sony. Now, many see Samsung as on par with the Japanese electronic giants, even surpassing them in some regards.
03-11-08, 02:40 PM
#20
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If the Genesis is a flop, as TRDFantasy seems to think it will be, might be a nice pickup in a year or two for 20K. 
03-11-08, 03:11 PM
#21
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Well, fortunately, those problems are not inside their vehicles. Their U.S. market vehicles, in some ways, have become as good or better than Hondas and Toyotas.....though Honda still leads the industry in overall vehicle reliability.
03-11-08, 03:38 PM
#22
03-11-08, 03:43 PM
#23
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No, I'm not a "professor" but I do a lot of car reviews.
03-11-08, 03:59 PM
#24
This was because of a set of commercials in the 80's with "Joe Isuzu" being the lying salesmen. Didn't work too well.
But to the point. Some people like me see Hyundai as a little POS from all my friends owning them in the early 90's. MY pops referred to them as disposable cars like the Yugo. I hear about the awesome efforts in quality and they are looking great nowadays, but I still can't find it in my heart to even consider one. Its the stigma that ruined sales, the economic hurdles of today is just frosting.
They should start a whole new name brand if they want to go upscale. Toyota, Nissan and Honda all have upscale brands and they are doing well. Mazda tried to take the same route that Hyundai took and the Mazda Millennium, being a nice car, just didn't stick in the consumer's mind as a luxury car...it was at very best a Mazda.
This is just my two-cents.
But to the point. Some people like me see Hyundai as a little POS from all my friends owning them in the early 90's. MY pops referred to them as disposable cars like the Yugo. I hear about the awesome efforts in quality and they are looking great nowadays, but I still can't find it in my heart to even consider one. Its the stigma that ruined sales, the economic hurdles of today is just frosting.
They should start a whole new name brand if they want to go upscale. Toyota, Nissan and Honda all have upscale brands and they are doing well. Mazda tried to take the same route that Hyundai took and the Mazda Millennium, being a nice car, just didn't stick in the consumer's mind as a luxury car...it was at very best a Mazda.
This is just my two-cents.
03-11-08, 04:04 PM
#25
TRDFantasy I think your plan to show Hyundai in a bad light has failed yet again. It seems you have something personal against Hyundai. Anyway all the consumer cares about is the final product regardless of how the management of that company operates. And it has been proven that this management style has been successful for Hyundai based on sales and growth. Do you honestly think the shareholders or potential buyers care?
03-11-08, 04:14 PM
#26
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=flipicanez;3350689]This was because of a set of commercials in the 80's with "Joe Isuzu" being the lying salesmen. Didn't work too well.
But to the point. Some people like me see Hyundai as a little POS from all my friends owning them in the early 90's. MY pops referred to them as disposable cars like the Yugo. I hear about the awesome efforts in quality and they are looking great nowadays, but I still can't find it in my heart to even consider one. Its the stigma that ruined sales, the economic hurdles of today is just frosting.
the Mazda Millennium, being a nice car, just didn't stick in the consumer's mind as a luxury car...it was at very best a Mazda.
03-11-08, 06:52 PM
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TRDFantasy I think your plan to show Hyundai in a bad light has failed yet again. It seems you have something personal against Hyundai. Anyway all the consumer cares about is the final product regardless of how the management of that company operates. And it has been proven that this management style has been successful for Hyundai based on sales and growth. Do you honestly think the shareholders or potential buyers care?
. I guess you missed when Gojirra99 said to keep the personal comments out of this. I just don't get it, all I did was post this article outlining the problems at Hyundai, and an article that shows Hyundai's management style. This article is a very informative piece on people who don't know much about Hyundai.
It seems as if this article has struck a very personal cord with some of you, as if Hyundai is somehow close to your hearts, judging by all the personal attacks being thrown at me. Some of you seem determined to put words into my mouth and to make personal assumptions about me
.I will say no more on this and will stay on topic.
03-11-08, 09:44 PM
#28
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I'm on vacation, I'm browsing, I read the article b/c it was interesting, I browse down and many of you just IGNORED Gojirra99 . So what if something is in bold, you are acting like TRDFANTASY WROTE THE ARTICLE.
You all have been ASKED to stay ON THE TOPIC. Does TRD like Hyundai? I think not much but he respects the numbers.
Stick to the topic. You are all so worried about what TRD is posting, its very easy to turn the same argument around and say the only time some of you post is to bicker or argue with posters you tend to not agree with.
Knock it off now.
03-12-08, 06:44 AM
#29
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Very few companies have such a shocking authoritarian or "feudal" management style. After reading the article, it's amazing that Hyundai doesn't have more problems right now.
Well that was partly why Hyundai's CEO was arrested a while ago. The business practices of Hyundai were being called into question in Korea.
Well that was partly why Hyundai's CEO was arrested a while ago. The business practices of Hyundai were being called into question in Korea.
My view: Each should fairly deal with it's employees, certainly the consumer as well, and the entire auto business will be the better for it.
If Hyundai wishes to shoot itself in the foot by actually doing things that are unlawful or unethical or just plain thoughtless toward it's employees, it will catch up to them at some point, but they are hardly the first to be accused of, or time will tell if actually guilty of some things.
03-12-08, 08:08 AM
#30
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To what end do you offer up what may or may not be viewed as disgusting business practices by an automaker? You mention arrests, Mistubishi and Toyota execs have been, feudal as well, doesn't get much more than labor articles for Toyota, other manufacturers.
My view: Each should fairly deal with it's employees, certainly the consumer as well, and the entire auto business will be the better for it.
If Hyundai wishes to shoot itself in the foot by actually doing things that are unlawful or unethical or just plain thoughtless toward it's employees, it will catch up to them at some point, but they are hardly the first to be accused of, or time will tell if actually guilty of some things.
My view: Each should fairly deal with it's employees, certainly the consumer as well, and the entire auto business will be the better for it.
If Hyundai wishes to shoot itself in the foot by actually doing things that are unlawful or unethical or just plain thoughtless toward it's employees, it will catch up to them at some point, but they are hardly the first to be accused of, or time will tell if actually guilty of some things.