Oct 14, 2020
Hyundai Motor Heir Takes over from Father after 20 Years in Waiting
Hyundai Motor Group named Euisun Chung as group chairman on Wednesday, solidifying his progression from his octogenarian father in a move liable to offer force to the world's fifth-biggest automaker's drive into electric vehicles and flying vehicles.
In the first generational handover at the South Korean car goliath in 20 years, Chung, 49, said he wanted to lead change at South Korea's second-greatest conglomerate as it fights to remain ahead of the pack in a period of rapid technological innovation in the global auto industry.
"Carrying on their striking and creative legacies, I feel special, yet additionally a feeling of incredible obligation regarding opening another chapter of the Hyundai Motor Group," Chung said in his inauguration speech to workers.
Chung recognized autonomous driving, electrification, hydrogen fuel cell, mechanical technology, and Urban Air Mobility (UAM) - industry language for flying vehicles - as his drives for what's to come.
Hyundai Motor shares were trading up to 0.3% in the wake of ascending as much as 2.5% after the arrangement, while the more extensive market (KS11) was down by 0.6%. Kia Motors (KS:000270) and Hyundai Mobis (KS:012330) fell by 1.6% and 1.1%, respectively.
Hyundai Motor Group before Wednesday said Chung had moved up to become chairman from the executive vice-chairman, supplanting his father, Mong-Koo Chung, who was made honorary chairman.
Key offshoots of Hyundai Motor Group, including Hyundai Motor (KS:005380), supported his inauguration collectively.
The arrangement makes Chung the most recent third-generation pioneer to assume control of one of South Korea's family-led conglomerates, which have been credited with lifting the war-stricken nation out of poverty since the 1950s.
His father took the wheels of the group in 2000 and changed the organization, once taunted for helpless vehicle quality, into the world's No.5 automaker.
The 82-year-old has been moving away from bleeding-edge activities lately and surrendered his board seat in Hyundai Motor earlier this year.
Euisun Chung has played an inexorably obvious influential position since September 2018 when he was elevated to chief bad habit director.
Hyundai Motor Group had invested $1.6 billion in a self-driving technology joint endeavor with Aptiv (N: APTV), manufactured an alliance with Uber (N: UBER) on electric air taxis, and put resources into ride-hailing firm Grab.
In July, Chung set an objective to win over 10% of the worldwide market for battery EVs by 2025.
Legacy automakers with comparable desires face a developing danger from Tesla Inc (O: TSLA), which has become the most important automaker.
Hyundai lately said it intends to review its top-selling EVs as a result of battery fire hazards.
Euisun Chung doesn't have a significant stake in Hyundai Mobis (KS:012330), a member seen as key to control of the group, and is required to restore the push for proprietorship rebuilding to solidify his impact after a past endeavor in 2018 met investor resistance.
Chung is credited with controlling the turnaround of Kia Motors by recruiting previous Audi originator Peter Schreyer. As vice chairman of Hyundai Motor, he additionally launched the luxury brand Genesis in 2015.
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