FE Perez-Agudo (right), president and CEO of Hyundai Asia Resources, Inc. (Hari), with Hyundai Motor Company vice chairman Chung Eui-sun in the ceremony where the Hari won the prestigious Global Distributor of the Year. Agudo also won best in national costume for her regal terno made by Nono Palmos.
The global growth of Hyundai Motor Co. (HMC) has been phenomenal, with net profit soaring 47 percent in January-March this year to US$1.7 billion after a 48 percent fourth-quarter profit jump in 2010. Together with 39 percent-owned Kia Motors Corp., HMC is the world’s fifth-biggest car manufacturer by sales and aims to sell 3.9 million vehicles worldwide this year, up from 3.6 million sold in 2010 in 185 countries. HMC’s net profit this quarter (April-June) is expected to rise as demand for its vehicles likely increased due to the Japanese supply disruption caused by the March 11 quake. To meet the growing demand and gain more market share, HMC is rolling out more vehicles through overtime work at its three plants in South Korea and six overseas plants, including those in the United States, China and India.
In the Philippines, where Hyundai Asia Resources Inc. (Hari) began business operations in 2001, annual growth averaged 48 percent in the last 10 years. As a result, Hari won the Hyundai Asia Pacific Distributor of the Year Award three times (2005, 2006 and 2008) and Fe Perez-Agudo, who began as Hari general manager at the start, was promoted to chief executive and president from executive vice president in 2009. Last year, Hari posted an amazing 82 percent growth, in the process dislodging Honda Cars Philippines, Inc. as the country’s No. 3 automotive brand.
Hari’s performance did not go unnoticed at HMC’s headquarters. Last week, at HMC’s global distributors convention in Bariff, Canada, attended by 185 distributors from all over the world, Agudo received on Hari’s behalf the Global Distributor of the Year Award, HMC’s highest distinction.
Category. Hari won in the 10,000 to 20,000-unit market sales category while Almajdouie Motors of Saudi Arabia won in the 30,000 or more market sales category and Hyundai-Sime Darby Sdn. Bhd. of Malaysia won in the 10,000 or less market sales category. Back in Manila, when asked if Hari got the award because of its sales record, Agudo replied that it was in recognition of Hari’s performance not only in sales, but also in its overall business operations as a distributor.
“More than ever, the recognition affirmed the world-class excellence that characterizes Filipino entrepreneurial and management capability, which has been transforming the performance and reputation of many Filipino-run global and domestic enterprises into sustainable success,” Agudo said. She credits Hari’s astounding annual growth to “strong Filipino management artistry and genuine values of creativity, insight and resiliency.”
Agudo’s achievement at Hari shows that an MBA degree from a prestigious university here or abroad is not necessary to succeed in business. After graduating with a Bachelor of Science degree in Commerce, major in Accounting at St. Scholastica’s College of Manila under a full scholarship program, Agudo worked for 20 plus years in the real estate industry, sharpening her managerial, marketing and coaching skills. When the opportunity came in 2001 to start up the official distributorship of HMC in the Philippines, she did not hesitate although, as she told me once, “no one wanted to touch Hyundai at that time.”
Difficult. “Beginnings are always difficult,” Agudo admits, which is an understatement since Hari had to fight a tough uphill battle to overcome the common perception of Hyundai as a
THE PRESTIGIOUS Global Distributor of the Year trophy.
cheap, poor-quality, unreliable brand from Korea with low resale value while Japanese brands were considered vastly superior. But when HMC improved its quality and technology so extensively that it topped Toyota in the Initial Quality Survey of J.D. Power and Associates at one time and Hyundai vehicles began earning the Recommended rating of Consumer Reports Magazine in the United States, the breakthrough was made.
Hyundai’s incredible growth was affirmed in March last year when it became the third top-ranking automotive brand in the Philippines after Toyota and Mitsubishi, the first non-Japanese marque to gain that distinction. Agudo attributes Hari’s success to “divine guidance and a strong pioneering dealer network and Hyundai team who shared the same resolve and determination.”
Inspired by the Global Distributor of the Year Award, Agudo revealed that Hari’s dealer network is working toward delivering the Dealer Enhancement Program (DEP) guidelines and specs of HMC from DEP 1 to DEP 2 standards. Hari plans to increase the number of dealerships nationwide from 36 to 45 by yearend, adding two in Metro Manila at North Edsa and Central Edsa plus nine new ones in Luzon and the Visayas. “It is important that we remain faithful to our goal to keep our customers happier,” she says. “We have to take our strengths now to the next level where our competitive advantage and brand equity are nurtured and sustained by new ways of thinking and doing which better capture what our customers want.”
Vision. Already, Hari is setting the groundwork to realign with HMC’s vision to become the third top-ranking brand globally and meet a sales target of 5 million units by 2015. “This entails beefing ourselves up even more, especially what we give to our customers—our products, services and aggressive marketing campaigns—that would endear them more to the Hyundai brand,” Agudo avers. ” We are also shifting our current brand image and customer perception from good value, quality and stylish to Modern Premium Brand.”
Through all this, the words of HMC vice chair Chung Eui-san echo in her mind: “These are exciting times for Hyundai. We have experienced outstanding growth and the future looks terrific. But as we said at the convention, we must remain humble and continue to press forward.”