Top Exec at Kia Steps Down after Recalls

The chief executive at Kia has stepped down after the automaker issued a recall of over 100,000 vehicles globally due to faulty wiring, the company announced today.

Chung Sung-eun, CEO and vice-chairman of South Korea’s second-largest carmaker, resigned on Friday, according to Michael Choo, Kia’s spokesperson.

“His resignation comes in light of the recent global recall issued by Kia Motors,” Choo stated without offering further explanation. Choo said no successor has been chosen yet.

Kia Motors Corporation is affiliated with Hyundai Motor Co., South Korea’s number-one automaker. Combined, they comprise the fifth-largest auto group in the world.

Mr. Chung’s resignation comes during a spate of recalls that have rocked the global car industry since Toyota Motor Corp. of Japan started recalling autos in October of 2009. The world’s number-one automaker has since recalled ten million vehicles for defects including sticking accelerator pedals and faulty floor mats.

According to South Korea’s Yonhap news agency, Hyundai Motor Chairman Chung Mong-koo requested that Chung Sung-eun resign to assume responsibility for the vehicle recalls, as they hinted at possible quality issues.

Neither Mr. Choo nor Hyundai spokesperson Song Meeyoung could verify the report.

Mr. Chung, Kia’s former CEO, is not related to the chairman of Hyundai, according to Choo.

Previously this month, Kia announced a global recall of 104,047 vehicles for a flaw in electric wiring that controls the cars’ mood lighting and may lead to heat-related damage, Choo said. Of the recalled vehicles, 35,185 were affected in the United States.

Based in Seoul, Kia has a complicated management system. Although Chung held the top position, the automaker’s daily operations are overseen by two presidents: Seo Young-jong for domestic operations and Hank Lee for international operations, Choo said.

Kia, which reported a 61-percent increase in its second-quarter net profit, produces vehicles in South Korea as well as in overseas factories in Slovakia, the United States, and China.