CEO of Hyundai America: EVs, vehicle design, full self-driving, future of auto

Welcome to another episode of the Car Dealership Guy Podcast.

Today’s guest is Randy Parker, Chief Executive Officer of Hyundai Motor America. Today, Randy discusses how he leads the fast-growing car brand in America, why the OEM is investing $1 billion in new dealerships, the future of FSD and fast charging, and much more.

Stream the full episode now: YouTube | Spotify | Apple

Lotlinx - Get the best possible market advantage on every vehicle transaction. Optimize operations and boost profits using artificial intelligence (AI) and machine learning. Learn more and lotlinx.com.

Uber for Business - With Central, you can request a ride on behalf of your customers even if they don’t have the Uber app. If you’re ready to reduce the costs associated with maintaining shuttles and limit the liability of loaner vehicles, it's time to partner with Uber. Visit t.uber.com/CDGauto today.

CDG Job Board - Connecting world-class talent with top-notch companies in Automotive. Find your next role—or start hiring today—at CDGJobs.com.

Interested in advertising with Car Dealership Guy? Drop us a line here.

Want to be considered as a guest on the podcast? Add your name here.

(00:00) - Intro

(02:59) - Randy’s background and career

(06:31) - What have been the key drivers to Hyundai’s market share growth?

(09:37) - How do you improve the Hyundai image while offering flexibility for your dealer network?

(12:47) - How important has design been to Hyundai’s success?

(15:31) - Stated vs. revealed preferences

(17:17) - What will be the next ‘important’ thing to consumers?

(18:31) - Robotaxis

(20:48) - How do you maintain momentum in a market that is becoming increasingly competitive?

(26:21) - Are EVs inevitable in the long term?

(28:42) - Thoughts on hybrids

(30:22) - Has the Hyundai customer changed in your time with the company?

(32:32) - How do you continue growing, but optimizing for the long term?

(34:50) - What’s on your mind and keeping you excited?

(37:07) - How are you thinking about affordability?

(39:20) - Marketing is the price you pay for being unremarkable

(41:24) - What’s your outlook for the company?

1. 1. Randy has been in the automotive space for 35 years.

He started in the business fresh out of college at GMAC Bank, now known as Ally Financial. He spent 4 years there working on the finance side of things before transitioning to Chevrolet Motor division where he stayed for 18 years. After spending so much time at General Motors, Randy wanted to spread his wings and took a position with Nissan/Infiniti for 7 years. Since then, Randy has been leading Hyundai Motor America. He says his desire to join Hyundai was due to three reasons: a tremendous amount of respective for the executive chair Euisun Chung, the incoming product portfolio, and the opportunity to work with his mentor José Muñoz, the president and global COO of Hyundai.

2. Hyundai has now captured over 10% market share in the U.S., a meteoric rise over the past decade or two. 

Randy attributes their growth to the quality of their products. But at the same time, nothing happens in the business until the car is sold by a dealer. Over the past 5 years, Randy says Hyundai dealers have been extremely supportive and resilient in battling through COVID and the microchip shortage. “I would say that's a big, big part of our success is changing the image of our brand in the marketplace through our dealer partners. The other thing that we've done over the past several years is really focus on our quality of sales. We focused on retail, less fleet, which has significantly improved our residual values,” says Randy.

3. Supporting the dealer network and improving its brand image.

Randy says that around 55% of Hyundai stores have been upgraded and mentioned a robust facilities program where dealers can earn money for dealership upgrades based on their sales performance. This program is backed by a billion-dollar investment. “They’re not doing it alone. We're working very closely hand in glove with our National Dealer Council to ensure that our dealers and through that we maintain a high level of throughput, whether it's in service, aftersales, finance. We're always looking for opportunities to grow,” he adds. “It's about making sure that the dealers have confidence in the brand.”

4. One word: design.

Design has become vital to the success of the brand’s growing popularity. “What I appreciated about cars back then is the exact same thing I appreciate about cars today. If the car is sexy and it's got a great design, I know when it looks good,” says Randy. But at the end of the day, it’s about creating designs that meet the demands of car buyers. But OEMs also have to anticipate what’s coming next in 5 to 10 years. And whoever gets there first wins. “I think design will always be important. I don't think that's ever going to change. At the end of the day, again, it's all about design in my opinion. That's where it all starts. But I think it's also about some of the technology that's going into some of these vehicles, he explains.

5. Toying around with robotaxis.

While Randy has been sworn to secrecy on the details of the projects, he does say the company is in a “significant discovery phase” at this point in time. “I mean, how cool would it be to get into a vehicle and you can drive from Huntington Beach, California to LA and the car is driving itself. And meanwhile, you can do all these great things inside the car,” he says earnestly. If nothing else, Hyundai will learn a lot about the technology. In the short term, he says they can harness that technology to protect drivers and reduce accidents. “I'm happy that we're dabbling in it,” he adds.

6. Building confidence in EVs.

Randy stresses the importance of strengthening Hyundai's brand through strategic marketing and advertising to stay competitive. He notes their successful EV campaigns, particularly their ads during the NBA finals. “And we're doubling down on the future when it comes to EVs. EVs are the future. It's not a matter of if, it's just a matter of when. And so if you look at our EV performance over the past year, including this year, we've had a lot of success,” says Randy. He explains Hyundai's aggressive lease programs for the IONIQ 5, IONIQ 6, and Kona EV, which utilize the IRA tax credit to make them more affordable. He also notes that their level 3 superchargers can add 100 miles of range in just 7 minutes. Furthermore, Hyundai provides two years of free charging through Electrify America and is involved in a joint venture with six other automakers to expand the U.S. charging infrastructure, with 30,000 additional chargers to be installed starting later this year.

7. EV investments.

Hyundai has some serious projects in the works. The automaker made a $12.6 billion investment in a huge manufacturing facility in Savannah, Georgia. “We're going to go live in Q4 of this year. We're going to start producing EVs coming out of the plant in Q4. And as I said earlier in the conversation, it's not a matter of if, it's a matter of when. And so we're putting our money where our mouth is, right?” asks Randy. The facility will create around 8,700 high-paying manufacturing jobs in the state. Yet, the path to all-electrification could include more hybrids. ”We want to meet the customer on their journey to electrification. And if it means that we need to produce more hybrids, we're doing that as well. We're already studying that as we speak. But make no mistake about it, at the end of the day, if you want to reduce your carbon footprint, it has to be done through EVs. I mean, a hybrid is a good transition to an EV. But an EV is a heck of a lot more efficient when it comes to reducing your carbon footprint,” he explains.

8. Industry headwinds.

The automotive industry has gone through a lot in the past 5 years. But Randy says that the pandemic and microchip shortage taught OEMs to be prepared for anything that might come out of left field. “ I think it's given us the courage, it's given us the confidence to press forward. And we're doing this hand in glove with our dealer partners, which I think is really, really important because at the end of the day, nothing happens until we sell a car and we sell cars through dealers, right? I think as long as we continue to fuel that part of the business, I think it gives us a very, very good chance of being successful tomorrow,” says Randy. “So what keeps me up at night is just making sure that my dealer partners are happy because once you lose your distribution, you've lost everything.”

9. Optimizing for the long term. 

Randy says it’s all about the four Ps of marketing: great product, great price, the right place, and promotion. He also reiterates the importance of upgrading facilities and providing a better customer experience. All of this combined drives greater demand from consumers. “I've got a great PR team. They try to get us out there to help control the narrative or push our narrative in the marketplace to ensure that consumers understand the direction of the brand going forward,” he says. Randy raises a good point, how many general consumers know that Hyundai is going to produce 300,000 vehicles at its new Savannah plant? “So, being able to talk to you and your listeners today, obviously making sure that they understand the significant investments. that Hyundai is making in the marketplace to help drive demand. And I think the more that we can do that, you'll see, the more that we're going to have success going forward. It's not easy. Let me say this. It sounds so simple, and yet it's still so very hard,” he adds.

10. Playing offense.

Randy is a former basketball player and draws the parallel that a great offense wins championships and Hyundai's strategy of always playing offense maintains its momentum. When it comes to affordability, he highlights Hyundai's aggressive lease programs and competitive approach to ensure people can afford their cars without excessive discounts. “Leasing is certainly a great product for the consumer, right? Especially if you're planning on, you know, changing our cars every three or four years. Great product that you can leverage at a very affordable price, right? And, you know, at the end of the day, incentives, as an example, are just a consequence of being competitive in the marketplace,” says Randy. Looking ahead, he is optimistic about Hyundai's future, aiming to grow the brand's value, improve franchise rankings, and increase brand awareness. He stresses the need to avoid complacency and continually push for success.