Hyundai Makes Diversity Key Part of Business Plan

Diversity is part of the business plan at Hyundai Motor America, with clear-cut objectives for which those in charge are held accountable, the company’s CEO said Monday.

Dave Zuchowski, speaking at the Rainbow PUSH Coalition Automotive Project conference in Detroit, said that diversity and inclusion used to be part of Hyundai’s social responsibility department. But “it didn’t work well because there was no ownership from the operating groups,” he said.

Now, diversity is part of the company’s business plan for every department with clear-cut objectives in areas such as hiring, the automaker’s retail network, suppliers, marketing and advertising. Employees are held accountable for meeting those objectives, Zuchowski added.

Growth potential

“Ninety-two percent of the growth in the automotive business is female and ethnic diversity buyers,” said Zuchowski. “That means you can’t do business the way you used to do business.”

According to data compiled by IHS Automotive, of the 502,000 new cars and trucks vehicles sold to African Americans in the first six months of 2014, 5.6 percent were Hyundai vehicles. Hyundai’s share of overall U.S. sales was 4.6 percent in the same time period.

But about only 29 of Hyundai’s 700 sales and marketing employees are African Americans. “That’s not good enough,” Zuchowski said. “The people who sell our products and services have to reflect the people who buy our products and services.”

Diversity council

One of the first things Zuchowski did when he took over as CEO in January was set up a diversity council of 17 employees -- including himself -- of different ethnic backgrounds, genders, ages and sexual preferences.

The council meets monthly to talk about the importance of diversity and inclusion within the company and all of its operations, said Zafar Brooks, director of general affairs, government relations and diversity at Hyundai. Brooks is on the council.

Hyundai America is analyzing and digging into “the little things within the company that will lead to bigger things,” Zuchowski said. “We’re sending a message that the status quo isn’t good enough.”

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