Korea’s business community is a close-knit – some would say xenophobic group. So, it came as a shock when, last month, top executives at the massive Hyundai Group — which includes both Hyundai and Kia — did something unheard of, placing a large chunk of responsibility for the company’s future in the hands of an outsider.
Then again, German Peter Schreyer, had already shown how he could transform the once-stodgy Kia brand into a global trend-setter.
“I think (my) role is definitely changing,” was the decidedly understated way Peter Schreyer opened a conversation about his new role as one of three Kia presidents. “I think it can help make the design organization stronger,” Schreyer said of his new position during a conversation at the Chicago Auto Show after unveiling both the Kia Forte 5-door hatchback and the edgy Cross GT Concept.
The latter, Kia suggests, delivers a strong hint of where the smaller of the Korean brands will be going in the future. It builds upon the distinctive “tiger-nose” design language that Schreyer introduced shortly after signing on with the Korean maker in 2006, itself a striking surprise. Until then, the German executive had been seen as a rising star within the Volkswagen Group, having put his stamp on the trendy Audi brand.
“I think it’s a great statement for them to put me in this position. I think it shows how important design is for them,” said Schreyer, noting he was still settling into his new role after serving as Kia’s top designer since leaving Audi in 2006. At the time, Audi was poised for a leap forward in global sales in large part because of the strong designs Schreyer had pumped into the maker’s product pipeline.
“I think Hyundai has made some bold moves,” said the German-born Schreyer, who turns 60 this year. “I’m not planning to make any big changes. It’s going to be evolved.”
Both Hyundai and Kia have surprised critics in recent years by transforming themselves from econobox manufacturers into brands that can deliver cutting edge styling, good performance and a range of up-market features. Both makers, in fact, are clearly moving their brands into more luxurious segments. The Cross GT, in particular, could take aim at Schryer’s old employer, Audi, if it goes into production.
And that’s a strong possibility. “We’ll be watching the reaction” on the auto show circuit to see if potential buyers like the Cross GT, said Kia’s U.S. marketing director Michael Sprague.
Schreyer said the new position overseeing design at both Kia and Hyundai creates the opportunity for him to better differentiate brands. “Sometimes (by) knowing what the other is doing, it’s easier to push them apart,” he observed.
The details will be left to the design staffs from each company in their studios in South Korea, Southern California and Europe, said Schreyer. But he also indicated his plan to maintain a hands-on style that proved so effective at Volkswagen, Audi and, most recently, Kia.
“I always sketch, always,” said the veteran stylist, who keeps a notepad close by at all times. “I can think better with a pen in my hand.”
Schreyer also said his new role offers him a wide-angle view that will make it easier building on the already solid reputations of the of the Kia and Hyundai brands.
“Strengthening our fundamentals, especially in the area of design, is imperative to secure long-term competitiveness,” said Woong-Chul Yang , Vice Chairman of Hyundai Motor Group’s R&D Center in Korea when Schreyer was appointed president of Hyundai and Kia design centers. “Design is not just the most visible aspect of the car, but it’s an area customers have a strong emotional connection to. It is at the center of our efforts to enhance our brand value.”
“Mr. Schreyer brings a wealth of experience in design from the global auto industry and has a deep understanding of the Hyundai Motor Group. These valuable qualities will help build the foundation needed to make Hyundai and Kia leading global top automakers,” added Yang.
Schreyer is also an accomplished painter whose canvasses have been exhibited all over the world. “In design we focus on the future and on visions. When I paint, I express emotions and experiences from the past and present – turning the inside out, like in a diary,” he noted on his personal web site.
“After graduating, I started working in the automobile industry and have been since working in this field. All the while, art was more in the background although I always had it in my mind. I believe that one of the secrets of my success as a designer was the fact that I kept both the artistic and technical sides in my brain. I let the two things reflect upon each other but never tried to mix. As Peter Zec has written, I kept my position rather neutral and indifferent when it comes to the discussions of the relationship between art and design. Art always remains as a part of my thinking, and for this reason, I was able to freely dive into the field of design without any constrictions imposed,” he added.
The approach has worked at Kia, which has earned plaudits for the design of its newest vehicles, including the two it showed off in Chicago.
“The debut of the (earlier concept, the Kia) GT in 2011 heralded a new frontier for Kia, both from a design and a business perspective,” noted Schreyer. “It beautifully illustrated to the world that the brand was ready to explore the possibility of perhaps one day offering a full-size rear-drive luxury saloon. The Cross GT, with its raised stance and large cargo area, allows us to envision the GT in the form of a full-size luxury crossover.”
“There is a really cool show car,” he told reporters in Chicago. “Look at closely. Every show car is always influencing future design. That’s the reason why we do it,” he said. “It shows what works and what doesn’t,” noted Schreyer, who added the strong design has been one of the key elements of Kia’s successful run in the U.S.
Kia Motors America is one of only three auto brands to increase U.S. sales in each of the past four years, and in 2012 the company surpassed the 500,000 unit mark for the first time. Design has been a major contributing factor, most analysts suggest.
“I think it’s been part of the reason – a big part of the reason – Kia has been able to keep growing,” added Schreyer, who hasn’t hesitated at bringing top talent from other automakers, such as Tom Kearns, a former top designer at General Motors, who now is charge of Kia’s design center in Southern California.
“I think we are on a very good (course) and we want to keep going that way,” Schreyer said.