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Four weeks ago, Kia Motors Corp. CEO Chung Eui-sun joined Len Hunt, the head of the South Korean automaker's U.S. operations, at the Detroit auto show to promote Kia's new SUV, the Borrego. Hunt beamed as he talked about how well he clicked with his boss and how they were intent on making great, fun-to-drive vehicles.

Hunt, a former Volkswagen AG executive who joined Kia Motors America in October 2005 as the chief operating officer, had just been promoted to CEO on Nov. 12.

So it came as a surprise to hear this past weekend that Hunt had resigned -- and that his marketing director, Ian Beavis, had also quit Kia.

But perhaps it shouldn't have. Hunt and Beavis are just the latest in a line of executives to leave the U.S. subsidiaries of Kia and its sister brand, Hyundai, both owned by Seoul-based Hyundai Motor Co.

Revolving doors

Hunt replaced Peter Butterfield, who left in October 2005. Three months later, Bob Cosmai, the CEO of Hyundai Motor America, was out. He was replaced by Steve Wilhite, a former Nissan Motor Co. marketing manager, whose tenure at Hyundai lasted 13 months.

Hunt is being replaced by Byung Mo Ahn, a longtime company veteran who was CEO of Kia Motors Manufacturing Georgia, in an apparently makeshift solution.

That kind of management churn can't be good for the South Korean automaker -- or any company.

"That is a serious problem," said Alexander Edwards, president of the automotive division of the San Diego-based consulting firm Strategic Vision.

"The folks at Hyundai are very talented, but they have very demanding sales goals. They believe the U.S. subsidiaries should be able to do the things they have planned," he said. "The pressure to make some of their goals is very difficult. It's why they have problems with retention."

Although the South Koreans started out emulating the leading Japanese automakers, and hope to beat them, they lack some of the qualities that have helped the Japanese to succeed: their patience, their conservative goals and demand-driven approach to the auto market.

The South Koreans also clash with U.S.-based sales executives over how to position the brands, with Hyundai trying to push its nameplate upmarket faster than some of its U.S. dealers think it should. No-warning resignations

The Asian automakers all experience strains between the managers at headquarters and those at the lucrative U.S. operations. But the turnover of U.S.-based executives at Hyundai and Kia has been exceptionally high, and the changes occur without any warning.

In the November release announcing Hunt's promotion, Chung Eui-sun, the grandson of the Hyundai Group founder, said the decision reflected a "solid vote of confidence" in Hunt. "He is the right choice to lead the company going forward."
Until further notice.