Korean automaker Hyundai has fired its U.S. CEO, Dave Zuchowski, as the company's car-heavy lineup struggles in a market currently dominated by sport-utility vehicles, crossovers and pickup trucks.
The company had no immediate comment Wednesday on the reason for Zuchowski's termination.
“We appreciate Dave’s decade of service to Hyundai, especially his leadership as president and CEO, which has made us a stronger organization,” Flannery said in a statement. "I look forward to working closely with our dealers, affiliates, senior management and our talented and hard-working employees across the country to realize Hyundai’s full potential."
Zuchowski could not be reached for comment Wednesday.
Hyundai brand vehicle sales were up 2.1% through November, compared to the same period in 2015, according to auto industry tracker Autodata. That outpaced industry-wide sales, which were up only 0.1%.
But that masks Hyundai's troubles. The company has been relying heavily on less-profitable sales to fleet customers, namely rental-car agencies, Autotrader.com analyst Michelle Krebs said.
Hyundai's stalwart sedans, the Elantra and Sonata, have become less enticing to American shoppers amid low gas prices. Discounts as a percentage of Hyundai transaction prices rose 13% in November, compared to a year earlier, according to TrueCar.
"The companies doing particularly well are those that have sport-utility vehicles and trucks," Krebs said. "And the ones that are heavily reliant on cars are doing not as well. A company like Hyundai, when it heavily incentivized vehicles, it doesn't have big truck profits to offset those with, like Ford or GM or Chrysler."
It's not the first time Hyundai has carried out an abrupt transition in its American leadership team. The company's previous U.S. CEO, John Krafcik, exited in surprising fashion in 2013 after a celebrated tenure and was replaced by Zuchowski.
Krafcik later joined tech giant Google as CEO of the company's self-driving car project, where he announced plans this month to rename the division Waymo.
Zuchowski's swift exit underscores the fact that Hyundai's power structure still remains heavily rooted in South Korea, Krebs said.
"It is very much dictated by Korean management without a lot of listening to their execs in the U.S. market," Krebs said.
Flannery takes over as the Korean automaker attempts an ambitious plan: capitalizing on the launch a new luxury brand, Genesis, which was spawned from an upscale Hyundai model. He'll have to manage about 350 dealers nationwide who are dedicated to selling the new lineup.
Genesis is entering a crowded space, competing against the likes of luxury stalwarts like BMW, Mercedes-Benz and Audi.
It may be a challenge for Zuchowski's successor to meet Genesis expectations.
"It takes years to build a luxury brand so if the Korean execs are expecting a quick win, it's not gonna happen," Krebs said.
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