Hyundai Motor said Monday that it hired Albert Biermann, chief engineer for BMW’s M performance cars, to develop high-performance models and to improve the ride and handling of its existing mass-market vehicles.

As of April 1, Biernamm will serve as senior vice president to become the Korean carmaker’s second-highest foreign executive after president and design chief Peter Schreyer, who joined Hyundai-Kia in 2006 from Audi.

Unlike Schreyer who stays mostly at his own design studios in Germany and the U.S., Biermann is expected to spend most of his time at Hyundai’s research and development center in Hwaseong, Gyeonggi Province, officials said.

“We will have him in charge of developing high-performance vehicles and leading performance, safety, durability, noise oscillation and system development,” Hyundai said in a statement. 

“Considering his expertise in the European market, he will also play a consultative role for our product and marketing strategies in the region.”

Biermann, a 57-year-old German, has worked for BMW since 1983. He is currently vice president of engineering development.

The longtime BMW executive’s appointment comes at a time when Hyundai and its affiliate Kia Motors have pushed hard to elevate their brand image as well as profit, with more premium, more expensive sedans in recent years.

The companies have rolled out several new high-end models, including their first rear-wheel drive cars like the Hyundai Genesis and the Kia K9, while setting up their own test-driving center near the renowned Nurburgring race track in Germany.

In 2013, Hyundai unveiled its ambitious plan to produce high-performance racing machines, launching its first in-house performance subbrand, “N.”

At the time, the company said the N was still more of a concept than an actual brand. But now, industry sources said the carmaker has been in contact with global market competitors in efforts to build its own tuning division like AMG of Mercedes-Benz and BMW Motorsport.

Hyundai’s recent move is partly due to the carmaker losing a major foothold in Korea’s lucrative premium sedan market to German luxury brands, including BMW.

Determined to win back the high-end drivers, Hyundai is rumored to have offered Biermann a staggering salary ― one even larger than what was offered to Schreyer nine years ago, according to sources.

Schreyer received a 1.5 billion won ($1.3 million) salary last year to become the highest-paid foreign executive at the Korean auto giant. Hyundai declined to comment on its executives’ salaries.

By Lee Ji-yoon (jylee@heraldcorp.com)