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Kia's president replaces its chief exec

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Kia's president replaces its chief exec

Chung ousted after global wiring recall

BY KELLY OLSEN

ASSOCIATED PRESS

SEOUL, South Korea -- Kia Motors said Tuesday that President Lee Hyoung Keun will replace Chung Sung-eun as vice chairman and CEO after the company recalled more than 100,000 vehicles worldwide over defective wiring.

"His resignation comes in the light of the recent global recall issued by Kia Motors," Kia spokesman Michael Choo said.

Kia is an affiliate of South Korea's top automaker, Hyundai. Together they form the world's fifth-largest automotive group.

Chung's resignation comes amid a wave of recalls that have shaken the global auto industry since Japan's Toyota began calling in vehicles in October last year. The world's top automaker has recalled more than 10 million vehicles for problems including faulty gas pedals and floor mats that can become pinched beneath accelerator pedals.

South Korea's Yonhap news agency reported that Hyundai Chairman Chung Mong-koo asked Chung to step down to take responsibility for the recalls.

Chung, the former Kia executive, is no relation to the Hyundai chairman, Choo said.

Early this month, Kia issued a global recall of 104,047 vehicles for a defect in electric wiring that controls mood lighting inside the car and could cause heat-related damage, according to Choo. Of that total, 35,185 vehicles were recalled in the U.S., he said.

Kia, which posted a 61% increase in second-quarter net profit, makes vehicles in South Korea, China, Slovakia and the U.S.

Read more: Kia's president replaces its chief exec | freep.com | Detroit Free Press http://www.freep.com/article/20100908/BUSINESS01/9080343/1210/business01/Kias-president-replaces-its-chief-exec#ixzz0ywTMAML2

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Kia names new top executive after recalls

Kelly Olsen / Associated Press

Seoul, South Korea -- Kia Motors promoted the chief of its overseas operations to the company's top executive job after his predecessor resigned following a global recall of more than 100,000 vehicles due to defective wiring.

The new boss, Lee Hyoung-keun, will retain his current responsibilities while also overseeing domestic business, global corporate planning and production and labor-management relations, Kia spokesman Micheal Choo said Wednesday.

Lee, also known as Hank Lee, will take vice chairman as his title. He replaces Chung Sung-eun, who was one of two Kia CEOs, and stepped down on Friday.

Chung's resignation came after Kia earlier this month issued a global recall totaling 104,047 vehicles for a defect in electric wiring that controls mood lighting inside the car and could cause heat-related damage. Of that total, 35,185 vehicles were recalled in the United States.

Kia Motors Corp. is an affiliate of South Korea's top automaker Hyundai Motor Co. Together they form the world's fifth-largest automotive group.

Chung's resignation came amid a wave of recalls that have shaken the global auto industry since Japan's Toyota Motor Corp. began calling in vehicles in October last year. The world's top automaker has recalled more than 10 million vehicles for problems including faulty gas pedals and floor mats.

Choo said Tuesday that Chung's resignation came "in the light of" Kia's global recall, without elaborating.

South Korea's Yonhap news agency reported Tuesday that Hyundai Motor Chairman Chung Mong-koo asked Chung to step down to take responsibility for the recalls as they suggested possible quality problems.

Neither Choo nor Hyundai Motor spokeswoman Song Meeyoung could confirm the report.

Chung, the former Kia executive, is no relation to the Hyundai chairman, Choo said.

Seo Young-jong, another top Kia executive, retains his position as company president and CEO with a focus on domestic operations, Choo said.

Kia, which posted a 61 percent surge in second-quarter net profit, manufactures vehicles in South Korea as well as at overseas plants in China, Slovakia and the U.S.

The company's stock price rose 2.3 percent Wednesday to close at 34,150 won ($29). Kia shares tripled in value in 2009.

From The Detroit News: http://www.detnews.com/article/20100908/AUTO01/9080393/1148/Kia-names-new-top-executive-after-recalls#ixzz0yyZAkkrR

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Kia names new top executive after recalls

BY KELLY OLSEN

ASSOCIATED PRESS

Kia Motors promoted the chief of its overseas operations to the company's top executive job after his predecessor resigned following a global recall of more than 100,000 vehicles because of defective wiring.

The new boss, Lee Hyoung-keun, will retain his current responsibilities while also overseeing domestic business, global corporate planning and production and labor-management relations, Kia spokesman Michael Choo said Wednesday.

Lee, also known as Hank Lee, will take vice chairman as his title. He replaces Chung Sung-eun, who was one of two Kia CEOs, and who stepped down on Friday.

Chung's resignation came after Kia earlier this month issued a global recall totaling 104,047 vehicles for a defect in electric wiring that controls mood lighting inside the car and could cause heat-related damage. Of that total, 35,185 vehicles were recalled in the U.S.

Kia is an affiliate of South Korea's top automaker Hyundai. Together they form the world's fifth-largest automotive group.

Chung's resignation came amid a wave of recalls that have shaken the global auto industry since Japan's Toyota began calling in vehicles in October last year.

The world's top automaker has recalled more than 10 million vehicles for problems including faulty gas pedals and floor mats.

Choo said Tuesday that Chung's resignation came "in the light of" Kia's global recall, without elaborating.

South Korea's Yonhap news agency reported Tuesday that Hyundai Motor Chairman Chung Mong-koo asked Chung to step down to take responsibility for the recalls as they suggested possible quality problems.

Kia, which posted a 61% surge in second-quarter net profit, manufactures vehicles in South Korea as well as at overseas plants in China, Slovakia and the U.S.

Read more: Kia names new top executive after recalls | freep.com | Detroit Free Press http://www.freep.com/article/20100909/BUSINESS01/9090374/1210/business01/Kia-names-new-top-executive-after-recalls#ixzz0z2K6G6NB

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