The Challenges for Byun Hauber, New CEO of Mercedes-Benz Korea

Strengthening Eco-Friendly Vehicle Portfolio Restructuring
Maintaining Growth Momentum in Korean Market Approaching 80,000 Units Annually
Restoring Brand Image Tarnished by Emission Manipulation
Former CEO Silakis Completes Term Without Retirement Ceremony

[Asia Economy Reporter Suyeon Woo] Bjorn Hauber, the new CEO of Mercedes-Benz Korea, began his term in August and has officially started his duties. Industry attention is focused on how the new CEO will lead the Korean market, one of Mercedes-Benz's global top 5 sales markets, and what strategic direction he will take.

According to Mercedes-Benz Korea on the 3rd, Hauber's term officially began on the 1st. Due to the impact of the novel coronavirus (COVID-19), Hauber has not yet entered Korea, but from the 3rd, he started performing his duties as the head of the Korean subsidiary remotely. Considering the entry procedures and the two-week self-quarantine period, it is expected that he will be able to attend the Seoul Square Mercedes-Benz Korea headquarters office only after mid-August.

Hauber joined the Daimler Group in 1996 and has been in charge of sales and marketing for the passenger car division in China since 2007. Through over nine years of working in China, he is known as a 'China expert' with deep insight into Asian consumer trends and analysis. Until recently, he served as the CEO of the Sweden and Denmark subsidiaries for four years, where he was recognized for his ability to establish eco-friendly vehicle strategies and increase sales, leading to his appointment as the CEO of Korea.

Therefore, his top priority after taking office is expected to be the restructuring of the eco-friendly vehicle portfolio in the Korean market. Last year, Mercedes-Benz Korea launched the EQ brand in the domestic market and introduced its first pure electric vehicle, the 'EQC.' They are strengthening their eco-friendly vehicle strategy by adding a plug-in hybrid lineup as well.

Additionally, maintaining growth momentum in the Korean market through the successful launch of existing best-selling models, such as the facelifted E-Class model to be released in the second half of this year, is also an important task. Last year, Mercedes-Benz Korea's domestic sales reached 78,133 units, growing into a market approaching 80,000 units annually and surpassing a 30% market share in imported cars. In the first half of this year, sales reached 36,368 units, marking an increase of over 9.8% compared to the previous year. It will not be easy to generate additional momentum this year in a market that showed rapid growth last year. The Korean market, facing a growth plateau, will be a testing ground for the new CEO's marketing strategy.

Recovering the brand image damaged by recent emission scandals is also considered a key task. Korean consumers expect Mercedes-Benz, which has achieved nearly 80,000 units in annual sales domestically, to contribute to local communities through active social contribution activities. Now in its sixth year since its launch, the Mercedes-Benz Social Contribution Committee has returned a cumulative donation amount of 27.2 billion KRW to Korea and plans to continue its ongoing investments.

Meanwhile, the former CEO of Mercedes-Benz Korea, Dimitris Silarakis, completed his term without a farewell ceremony despite achieving the top spot in imported car sales for four consecutive years during his tenure. Amid the recent emission manipulation controversy and the prosecution's impending search of Mercedes-Benz, suspicions arose that Silarakis's business trip to Germany was a 'flight trip.' Silarakis stated, "I was not aware of the Ministry of Environment's announcement or the prosecution's investigation schedule in advance, so the claim that it was a flight trip is a groundless speculation," and added, "I hope the new CEO will continue to strengthen networks and expand the role of the Mercedes-Benz Social Contribution Committee."

This content was produced with the assistance of AI translation services.