Son of BMW’s legendary former CEO Kuenheim now leads fast growing Asian business


BMW Group’s new Asia chief Hendrik von Kuenheim remembers when Hyundai Motor launched its first passenger car Pony in the U.S. market back in 1986 when he worked as a sales manager in Los Angeles.

“Hyundai is a remarkable success story. It has come a long way in design and quality. Hyundai and Kia will become a tremendous challenge to (the world’s top sellers) Toyota and Volkswagen,” he said during a press conference held at a Seoul hotel on Tuesday.

“Fortunately I’m not the Volkswagen chairman, but if I were him, I would be very nervous.”

Asked about luxury sedans launched by Korean carmakers, Kuenheim, however, made it clear that “Hyundai and Kia are very successful but no competition to BMW as we operate totally different segments.”

He cited the case of Toyota Motor’s Lexus brand whose sales and brand awareness are still limited in some markets, saying, “Building a brand takes a long time.”

The senior vice president for Munich, Germany-based BMW recently took office to oversee the Asia-Pacific and South Africa regions. He selected Korea as the first destination for his current business trip.

The 52-year-old former hotelier is also the son of BMW’s legendary former CEO Eberhard von Kuenheim who is considered to have transformed the company from a small manufacturer of cars and motorcycles into a global luxury icon during his tenure from 1970 to 1993.

Kuenheim said his father used to stress fundamentals like honesty and diligence and ask, “What do you want to stand for?” but his influence in the son’s career change was very limited.

BMW posted its best-ever August sales this year, selling 121,615 BMW, Mini and Rolls Royce vehicles, a 9.7 percent increase from a year ago.

With the European car market showing no signs of recovery, BMW now pins high hopes on the fast-growing Asian market which makes up 20 percent of the company’s global sales.

Even though the regional market is largely driven by Russia and China, Korea is also one of the most dynamic markets where BMW is an “undisputed” market leader since its operation in 1995, the new regional head said.

Car sales by BMW Korea surged from 700 in 1995 to 23,000 last year and this year the sales goal is set at about 27,000 vehicles.

Despite the stronghold of Hyundai and Kia cars here, Kuenheim showed high expectations about the import car market as Korea opens its economy more actively recently, signing free trade agreements with the U.S. and European Union.

“The 10 percent share of import cars here is one of the lowest figures in developed markets. But I see the figure could increase 15 to 25 percent even though it will take several years,” he said.

The strong presence of BMW in Korea has also led to its recent announcement of building a large-scale driving center on Yeongjong do, where Incheon International Airport is located, by 2014.

The mega project to offer training and entertainment programs, in which BMW plans to invest 70 billion won ($61.9 million), is the first in Asia and the fourth globally, following two in German and one in the U.S.

Considering the driving centers in other countries have been located near where BMW has production facilities, some industry watchers raise speculation about the possibility of the carmaker’s new production plant in Korea.

Kuenheim declined to comment on “speculation” although he admitted the importance of local production for successful local business.

On Tuesday, he attended a special event donating 17 BMW vehicles to colleges and high schools specialized in automotive engineering for research purposes, marking the 17th anniversary of BMW Korea.

After looking around some dealerships and holding business meetings, he was scheduled to leave for Japan on Wednesday.

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