Autonews-Hyundai r&d president, 2 other execs resign over quality problems
11-22-13, 11:41 AM
#16
I'm not saying it's not. Simply pointing out they grew to big too fast for thier own good and now their back pedaling a bit. I applaud Hyundai and Kia for things like the Genesis and K900 but I called it that the "fluff" from the start as to the quality. Numbers on paper look really good, real world has been more lackluster. They have improved though, just not enough to make me consider this new generation of Genesis. Perhaps the gen after they'll impress me more.
02-24-14, 06:05 PM
#17
In Related News ...
Hyundai notched big gains in its sales, market share and image when its swoopy 2011 Sonata hit the market. But barely 3 years later, the mid-sized car has left Hyundai with a black eye.
Problems reported by owners of the 2011 Sonata were the main reason that the Hyundai brand ranked 5th from the bottom in the latest dependability rankings from J.D. Power and Associates.
Hyundai owners reported an average of 169 problems per 100 vehicles in J.D. Power's 2014 Vehicle Dependability Study, which measures the performance of vehicles after 3 years of ownership. It was Hyundai's 2nd year of increasing problems after steady improvement from 2009 through 2012.
Also contributing to the low scores was Hyundai's Elantra compact car, J.D. Power said. The current generation of both cars launched as 2011 models from Hyundai's plant in Alabama, which has been running around the clock on 3 shifts since the fall of 2012.
Not holding up
The Hyundai brand finished 27th, or 5th from the bottom, in this year's J.D. Power Vehicle Dependability Study rankings. The study measures the average number of problems per 100 vehicles reported by owners who have owned their cars for 3 years.
PHP Code:
Study year/ Model year Problems per 100 vehs. Industry rank Rank among nonluxurey brands
2009/2006 161* 14 4
2010/2007 148* 11 4
2011/2008 132* 10 2
2012/2009 125* 10 4
2013/2010 141 22 13
2014/2011 169 27 13
*Better than industry average
Ed Kim, an analyst with consultancy AutoPacific, says the dependability shortcomings are unlikely to hurt Hyundai's brand in the near term. Kim says most consumers pay closer attention to J.D. Power's initial-quality rankings.
Still, he says, the poor dependability scores are a red flag for a brand that has put years of work into improving its quality reputation.
"We've finally reached the point where people have far fewer prejudices against Hyundai's quality," Kim said. He added: "The poor VDS performance is a warning sign to Hyundai because it takes a lot of time and money to build and rebuild a reputation for quality, which they've successfully done for a long time since introducing their 100,000-mile warranty. But it can be destroyed in a flash."
In a statement, a Hyundai Motor Co. representative said the company is "very disappointed" by the results, adding that it "is in the process of examining every component of the score to determine root-cause solutions and improve our products and processes." A Hyundai quality executive was unavailable to comment last week.
It's not uncommon for vehicles to have problems in their launch year, but the Sonata launch had more problems than usual for Hyundai and for the industry in general, said Dave Sargent, J.D. Power's vice president of automotive, who leads the annual study.
The Sonata was a game-changing vehicle for the Hyundai brand when it arrived as a 2011 model, with a distinctive design that shook up the otherwise staid mid-sized sedan segment. It soon became Hyundai's top-selling car.
Such success can be a double-edged sword, especially if durability problems persist, says Karl Brauer, senior analyst at Kelley Blue Book.
"That car was at the heart of a lot of the momentum that they were seeing at the same time that their image, sales and everything was getting better," Brauer said.
"You don't want any of your cars to have a bad reputation, but it would be far better if it was something more obscure from their model line."
Sargent declined to identify the main issues that drove the Sonata complaints. But for the industry in general, the J.D. Power study found a rise in engine and transmission problems, especially for 4-cylinder engines.
"While striving to reduce fuel consumption, automakers must be careful not to compromise quality," Sargent said in a statement when the study was released. "Increases in such problems as engine hesitation, rough transmission shifts and lack of power indicate that this is a continuing challenge."
The 2011 Sonata ushered in advanced powertrain technologies that were rare in the segment at the time, such as all-aluminum engines, gasoline direct injection, 6-speed transmissions and continuously variable valve timing. It was also the 1st mid-sized sedan to use a turbocharged 4-cylinder in place of a V-6 for high-end models.
In its statement, Hyundai said it expects its dependability ratings to improve in next year's J.D. Power study.
AutoPacific's Kim noted that Hyundai has prioritized improving vehicle quality over growing sales volume for the past few years. "Knowing them," he said, "I'm sure they're not sitting still."
02-25-14, 04:52 PM
#20
Hyundai rehires R&D president let go over quality issues
Hyundai rehires R&D president let go over quality issues
Last November, Hyundai announced the resignations of research and development president Kwon Moon-sik and two other R&D executives. At that time, it was said that the executives wished to "take responsibility for a series of quality issues" at the Korean automaker. Kwon Moon-sik had only been in the position for a year, but some of the quality issues thought to have caused the resignations included recalls of the Genesis and other sedans around the world, along with the company's much-publicized fuel economy overstatement controversy – both of which dealt with matters that transpired before Moon-sik took his position. In its statement at the time, Hyundai said, "The latest personnel change shows our firm commitment to quality management and reaffirms our will to continuously improve R&D competitiveness."
Three months later, Reuters is reporting that Moon-sik is back with the company, a statement announcing the rehire saying, "Given his expertise, experience and leadership skills, we reinstated president Kwon to enhance quality and R&D capability from scratch." Company chairman Chung Mong-koo is said to have a reputation for firing then rehiring workers, and it's possible this rehire is especially timely because Hyundai will bring its new Sonata to market this year and likely wants its experienced R&D captain at the wheel.
The man who had taken Moon-sik's position has returned to his previous post as head of powertrain development. However, in another surprise resignation, the head of Hyundai's design center, Oh Sug-geun, has left the company for "personal reasons." He has been replaced by Lee Byung-seob, who moves up from his position as head of exterior design.
Three months later, Reuters is reporting that Moon-sik is back with the company, a statement announcing the rehire saying, "Given his expertise, experience and leadership skills, we reinstated president Kwon to enhance quality and R&D capability from scratch." Company chairman Chung Mong-koo is said to have a reputation for firing then rehiring workers, and it's possible this rehire is especially timely because Hyundai will bring its new Sonata to market this year and likely wants its experienced R&D captain at the wheel.
The man who had taken Moon-sik's position has returned to his previous post as head of powertrain development. However, in another surprise resignation, the head of Hyundai's design center, Oh Sug-geun, has left the company for "personal reasons." He has been replaced by Lee Byung-seob, who moves up from his position as head of exterior design.
02-26-14, 07:32 AM
#25
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Problems reported by owners of the 2011 Sonata were the main reason that the Hyundai brand ranked 5th from the bottom in the latest dependability rankings from J.D. Power and Associates.
anyway, never really cared about these rankings. just look at that data. 2009 they had 161 problems and ranked 4th among non luxury. and 2013, the bad year 169 and ranked 13th. how stupid is that? and when they were ranked 2nd in 2011 they had 132. so lame.
Last edited by hlee12; 02-26-14 at 07:36 AM.
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