Kia Motors Says Vice Chairman Jeong Resigned on Sept. 3 After Car Recalls
Kia Motors Corp. said that Jeong Sung Eun resigned as vice chairman of the South Korean carmaker to take responsibility for the recent recalls of four models. President Lee Hyoung Keun will replace him, Bloomberg reported.
Jeong stepped down Sept. 3 after Kia issued a series of recalls worldwide, Michael Choo, a company spokesman, said by phone. Lee was appointed vice chairman, Kia said in a separate statement today.
The resignation highlights increased sensitivity among automakers to quality problems after Toyota Motor Corp., the world’s largest carmaker, recalled more than 8 million vehicles in the past year for problems related to unintended acceleration. Kia’s action was swift and appropriate, said Chae Hee Guen, a Seoul-based analyst at Meritz Securities Co.
“Jeong resigning is a preemptive action,” Chae said. “Quality is a top priority for Kia and Hyundai Motor Co. management. They don’t want to tarnish their image.”
Jeong, a former president of Kia, was in charge of the production division, Choo said. Jeong wasn’t immediately reachable for comment.
Kia, an affiliate of Hyundai Motor, fell 0.2 percent to close at 33,400 won in Seoul trading, while the benchmark Kospi index dropped 0.3 percent.
South Korea’s second-biggest carmaker is recalling about 85,900 vehicles worldwide because of a wiring problem that can cause fires, Kia said in an e-mailed statement yesterday.
Kia will recall about 36,000 Soul compacts; 33,000 Sorento sport-utility vehicles; 8,000 Mohave SUVs; and 8,900 Cadenza sedans, the company said. The vehicles were made between September 2009 and July this year, the carmaker said.
The company will recall another 18,147 Sorento, Borego and Soul models in China because of problems with circuit boards, the General Administration of Quality Supervision, Inspection and Quarantine said in a statement on its website yesterday.
More Industry

Gone to the Dogs
A Stellantis brand decided to have some fun with one of its SUVs’ design to address growing emphasis on family pets.
Read More →
Luxe N.C. Dealerships Change Hands
A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.
Read More →
Exposure Drives Interest in Chinese Cars
At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Agent Advocate
Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.
Read More →
Driving Under Distraction
Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.
Read More →
Affordable New Cars a Thing of the Past
More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.
Read More →
State Follows Federal Warning on Auto Ads
The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.
Read More →
Consumer Outlook on the Rise
Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.
Read More →
Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →