Ex-Ghosn Ally to Lead Hyundai in U.S. Market -- WSJ

By Mike Colias 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (April 19, 2019).

Hyundai Motor Co. has hired Jose Muñoz, formerly one of Carlos Ghosn's top lieutenants at Nissan Motor Co. and a potential CEO candidate at the Japanese car maker before his abrupt departure earlier this year.

Mr. Muñoz, who left within months of Mr. Ghosn's arrest in November, will lead the Korean auto maker's North America business as the company works to reverse a market-share slide in one of its most profitable regions. He also will serve as chief operating officer for the Seoul-based parent company, Hyundai said Thursday.

Mr. Muñoz, 53, spent 15 years at Nissan, most recently leading business strategy across the Japanese auto maker's global regions, including having direct oversight of its China operations. The native of Spain resigned in January amid a broader shake-up in Nissan's top management ranks following the November arrest of Mr. Ghosn, the company's former chairman and CEO.

Mr. Ghosn was later charged with misstating deferred compensation on Nissan's annual financial statements. He was rearrested earlier this month on fresh suspicions of breach of trust, meaning abuse of his position at Nissan for personal gain.

Mr. Ghosn has denied any wrongdoing, calling the charges and accusations against him groundless.

Hyundai in the U.S. has grown from a little-known budget car brand to a significant mainstream player, garnering quality ratings and price points on par with established car makers like Ford Motor Co. and Honda Motor Co. The Hyundai brand has more than doubled its U.S. market share since the early 2000s.

But Hyundai's market share has slipped in recent years, hurt by a sharp consumer shift to sport-utility vehicles and away from the sedans that long served as its vehicle-lineup core. The Hyundai brand's U.S. market share was 3.9% in each of the past two years, down from 4.4% in 2016, according to the Automotive News Data Center.

Like other auto makers, Hyundai has been scrambling to get more SUVs into U.S. showrooms. It introduced a new small crossover SUV called the Venue aimed at younger buyers at the New York Auto Show this week.

In an interview, Mr. Muñoz said he wants to raise the level of customer service at Hyundai's 840 U.S. dealerships to improve the brand's cachet in the U.S.

"There is an opportunity, by working with the dealers, to elevate the Hyundai brand," Mr. Muñoz said on the sidelines of the New York Auto Show.

Mr. Muñoz had been considered a potential CEO candidate at Nissan, people familiar with the matter have said. But his future at Nissan was cast into doubt following Mr. Ghosn's arrest and eventual ouster from the company.

In January, Nissan said Mr. Muñoz was taking a leave of absence to assist the company on tasks "arising from recent events." About a week later, he resigned, saying in a statement Nissan is involved in matters that are diverting the company's focus.

Mr. Muñoz spearheaded Nissan's strategy in 2011 to increase both global share and operating margins to 8% by 2017. Nissan feel short of both targets, expect in the U.S., where a team led by Mr. Muñoz briefly hit the market-share target.

A nuclear engineer by training, Mr. Muñoz joined Nissan in 1999 and quickly rose through its ranks to lead Nissan's operations in his native country of Spain. He then went on to head Nissan's Mexico operations in 2009 and was tapped in 2014 as head of Nissan's North America unit.

In late 2016, he was appointed chief performance officer in charge of ensuring the company hit its growth targets.

In a statement, Hyundai Motor Co. President Wonhee Lee lauded Mr. Muñoz as a "visionary and motivational leader" that will be counted on to "achieve long-term, sustainable growth."

Write to Mike Colias at [e-mail]

(END) Dow Jones Newswires

April 19, 2019 02:47 ET (06:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.