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‘Depending on the situation, we must learn to wait with patience and precision. This is the same in managing a company.’
November 19, 2009
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Earlier, GM Korea launched its new CTS. Although the U.S. automaker has suffered heavily from the global economic impact, it is trying to make an aggressive comeback with the launching of the new GM. Especially for Chung Jae-joon, the president of GM Korea, this is a special year as he started leading the Korean unit of GM earlier this month. For Chang, GM’s bankruptcy was not a crisis but an opportunity since he had a similar experience in the past. Q. The year 2009 is coming to an end with less than two months left on the calendar. What has this year been like? A. Since I joined GM in 2006, this has been the most dynamic year. Due to the economic crisis, practical efforts to innovate and to prepare for GM’s new launch were prioritized. And after much process, GM was reborn as the new GM in July and with it, GM Korea is making new steps with clearer vision. I became the new head of GM Korea on Nov. 1. I consider it a new starting point personally and for GM Korea. GM Korea has been preparing for larger growth and we plan to execute our plan starting now. The first thing new GM Korea is going to do is improve the organization and management process. We are focused on reducing costs and increasing efficiency by rechecking for areas of inefficiency. This does not mean that we are thinking of shedding jobs because we’re already a slim company. We’re not even thinking of cutting salaries or offering incentives when selling our vehicles. What we are doing is looking into new ways to market our products without having to spend so much. One of the ways is tapping into the Internet, which is less expensive but more effective than existing media. At the same time we are expanding our sales network and strengthening our lineups to fuel growth. It was an exceptional year for GM. When GM filed for bankruptcy what was the thought that passed through your mind as an official of GM Korea? I had already experienced a similar situation when I worked for Kia Motors. Kia Motors went bankrupt and was acquired by Hyundai Motor. It was a devastating experience. Although I can’t say I have given up all of my youth to the company, Kia Motors was where I worked for eight years. I wasn’t afraid of finding my next meal, but it was just the thought of losing a place where I had spent so many years. But now when you look back Kia Motors has overcome past difficulties and now is a strong automaker competing in the global market. When I heard the news of GM going bankrupt, I was more assured that this company would resurface and become a stronger firm. I have complete faith in GM’s century-old experience and technologies. In what we generally refer to as a ‘crisis,’ there is always an opportunity. In fact, some call a crisis another opportunity. Depending on the situation, we must learn to wait with patience and precision. This is the same in managing a company. GM in the past has led the global automotive industry and continuously worked on innovation and improvement. GM’s sufficient experience and keen observation as well as aggressive execution will once again put the automaker back in a leading position. GM in July launched the new GM by overhauling its organization and reorganizing of its product lineups. GM is stabilizing at a faster rate than was expected and saw a favorable third-quarter performance, which are all positive signs for the future. Since the global economic crisis, what has been GM Korea’s new strategy? We are strengthening our lineup and overcoming the crisis and making new paths for the future. Along with the recent release of the new CTS and all-new SRX this month, we are planning on introducing the CTS wagon in December. Additionally, we have opened Cadillac show windows in Seoul and Daejeon. We hope that the expansion of our service and sales network will be the stepping stones of our future growth. Additionally we are employing more efficient and creative marketing systems. We’re still looking for new ways to market our products, one of which is including bloggers on the Internet. Previously, Cadillac had been perceived as a high-class vehicle for the older generation. It was a car driven by successful middle-aged businesspeople. Now we are targeting a younger group. In the last couple of years we have been seeing some shifts in younger consumers demanding Cadillacs. The recently released Cadillac, especially, is already a competitive product compared to similar models. The most important point is the marketing activity that raises the product to a premium brand in a short period of time. How much importance does GM headquarters put into GM Korea? GM has installed a Korean voice recognition system in the all-new SRX, which is a first for the company. GM has always considered Korea a significant market in Asia and has continuously kept up interest. That will not change even with the economic crisis. I can’t say anything will last forever but for now GM is giving much attention to Korea. You had been with Kia Motors for a very long time. What do you think is the difference in corporate culture between Korean automakers and imported vehicle companies? In the case of Korean automakers, which would be Hyundai Motor and Kia Motors, the company focuses on the decision of the owner. And for this reason, decision making and the way work is processed is very fast. Also Korean automakers are very aggressive in expanding their businesses. This was the contributing factor behind our fast growth. Import vehicle companies, on the other hand, are very rational and systematic in their working processes. Also they operate in an open management system where communication is freely exchanged not only between companies but also within the company. Working in the automotive industry for so long, what management know-how have you learned? For a company to grow, the most important factor is to make changes that are one step ahead of the next guy. This is not only limited to changes in product but also the employees who organize the company. The will to keep changing and demanding change is closely connected to a company’s development and survival. Also open communication with employees minimizes the reluctance to change. What could the automotive industry and Korean customers expect from GM Korea in 2010? Next year we will continue to bring in new models, starting with the CTS sport wagon, CTS-V, CTS coupe and expanding our dealers’ network. Next year we will step up in the premium imported vehicle market. With the new GM Korea, instead of simply focusing on quantity and growth, we will try to elevate our brand value as a premium. By Lee Ho-jeong [ojlee82@joongang.co.kr] |
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