VW Korea Managing Director Jumps to Renault Samsung

In a move that surprises many analysts, Renault Samsung snatches away from Volkswagen Korea its managing director, the renowned Park Dong-Hoon.

Park built the German auto maker’s Korean subsidiary from a new importer with only 1,635 sales in 2005 to the country’s second-best-selling import brand with 18,395 deliveries.

Park joins Renault Samsung Sept. 1 as executive vice president in charge of the subsidiary's sales and marketing functions.

It is difficult to determine why Park made the change. His sales record at VW Korea is legendary among importers, and from 2008 to 2012 he was chairman of the Korea Automobile Importers and Distributors Assn.

Park tells news media he appreciates being able to grow VW Korea, but he thought it was the right time to leave after eight years and apply what he has learned in another automotive setting.

No successor has been named to succeed Park, who leaves the German sales unit while it’s still smoking.

July sales of 2,696 units were up 124.8% over like-2012, good for 18% of the import market compared with 11% year-ago.

For the year’s first seven months, VW Korea’s sales totaled 13,561 units, a 15.2% share of the import market and a percentage gain of 12.3% over 2012. The company seems well on its way to hitting Park's full-year target of 23,000.

Renault Samsung executives, meanwhile, are thrilled to welcome Park aboard. The French-owned subsidiary’s deliveries in July fell 7.1% to 10,000 units and for the seven months were down a dismal 26.8% to 68,789.

Some analysts are trying to connect the dots between Park’s departure and the recent resignations of several other VW Korea executives.

Shortly after Johannes Thammer replaced Trevor Hill as Audi Volkswagen Korea managing director in December, management problems arose. Hill moved on to become managing director of Audi Volkswagen Middle East, headquartered in Dubai.

In February, a new director of marketing was brought in to replace Lee Yeon-kyoung, who had been with VW Korea since its 2004 founding. She had filed a complaint with Korea’s Labor Relations Council alleging wrongful dismissal, but the company agreed to an undisclosed settlement with her just before the council was to open hearings.

The dismissal language was retracted and reportedly was changed to reflect termination by agreement in a settlement contract.

In this same period, 10 veteran managers out of a total of 118 quit Audi Volkswagen Korea, leaving posts in marketing, finance and service operations. Eight of the 10 previously had been employed by VW Korea.

Some analysts think it is likely Park may have left VW Korea for the same reason as the other executives: disenchantment with senior executives from Germany who allegedly are second-guessing the Korean managers and interfering with their established programs that have made VW Korea a successful importer.

Whatever may be causing the excessive turnover of veteran managers at VW Korea, analysts who are trying to make sense of Park's sudden jump to Renault Samsung agree he will work to grow the auto maker.