Manfred Haro Likely to Be Promoted to R&D Chief
Leadership Reshuffle Aims to Accelerate Development
Attention Focused on Appointment of New AVP Division Head
Hyundai Motor Company and Kia have taken a bold step by simultaneously replacing both of their top research and development (R&D) leaders to accelerate their transition to Software-Defined Vehicles (SDV). Amid ongoing criticism that their SDV and autonomous driving technologies lag behind those of Tesla and Chinese brands, this leadership shake-up is seen as an effort to revitalize the organization and speed up technological development.
According to the automotive industry on December 11, Hyundai Motor Company and Kia are strongly considering Manfred Haro, Vice President of Vehicle Development, as the new head of R&D. The current head of R&D, President Yang Heewon, will step down and is scheduled to hold a retirement ceremony on December 15.
With this move, Hyundai Motor Company and Kia are replacing both of the 'dual leaders' of their R&D organization, initiating a sweeping leadership overhaul. Last year, Hyundai Motor Group divided its R&D organization into software (SW) and hardware (HW) divisions, appointing President Yang and President Song Changhyun, head of the AVP division, as the respective leaders in a two-track system. However, after President Song announced his resignation on December 4 and President Yang followed suit, both pillars of R&D are now being replaced.
Industry observers interpret this decision as a reflection of internal assessments that the pace of SDV and autonomous driving development has been slower than targeted. Recently, Tesla introduced its 'Full Self-Driving' (FSD) feature, rated at 'Level 2+,' in Korea, while General Motors also launched 'Super Cruise,' which enables hands-off driving in select sections, intensifying competition in the Korean market. In contrast, Hyundai Motor Company and Kia have delayed the introduction of 'hands-off' features, citing the need to achieve higher technological maturity, and as a result, have ceded the 'first in Korea' title to competitors.
The fact that domestic consumers are highly sensitive to technological changes has also heightened the sense of crisis within Hyundai Motor Company and Kia, as autonomous driving capabilities are emerging as a key factor that will shape the future of the domestic market.
Currently, only high-end Tesla models manufactured in the United States are able to use FSD in Korea. However, if Tesla were to introduce more affordable U.S.-made models to the Korean market, the competitive landscape could change dramatically. In addition, with Chinese electric vehicle brands aggressively pushing both technology and pricing based on SDV architecture, there are growing concerns that shifts in the market due to the autonomous driving gap could occur rapidly.
Concerns about Hyundai Motor Group's autonomous driving technology are also mounting in overseas markets. While Motional, the group's autonomous driving joint venture, is accelerating its technology development, it has yet to achieve visible results or successful demonstrations. In this context, Chairman Chung Euisun of Hyundai Motor Group appears determined to accelerate R&D organizational innovation through this leadership renewal.
Manfred Haro brings extensive development experience in body and chassis technology, electronic systems, and project management from global automakers such as Audi, BMW, and Porsche. He is particularly recognized for his expertise in platform and architecture development, which are core to implementing SDV and autonomous driving technologies, making him a fitting choice to accelerate Hyundai Motor Group's transition to SDV.
Attention is now turning to the appointment of a successor to lead the AVP division, which is responsible for software development. It is reported that the group has not yet finalized a replacement for President Song and is broadly considering global big tech talent, including senior executives from Tesla.
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