Finbarr O'Neill Is Not a Car Guy

From Function to Fashion
For O'Neill, quality is job one -- but it's not his only job. Hyundai's next big challenge: to go from functional to fashionable. "The brand remains in the bottom 10 of cars that people will consider," reports George Peterson, president of AutoPacific Inc., a consulting firm. In fact, many customers still choose between a new Hyundai and a used car from a higher-profile brand. That isn't a foundation for long-term success. "We want people to say at cocktail parties, 'It's okay to have a Hyundai in the driveway,' " quips O'Neill.

Here too the CEO is prepared to shift into high gear. Hyundai has been enjoying fat margins in the United States. But rather than dropping prices to gain share, it has pumped cash back into the cars in the form of trendier design, leather seats, and side air bags. Hyundai's new compact SUV, the Santa Fe, has nabbed customer-satisfaction and safety awards and has become something of a cult favorite. Hyundai's sleek, sporty, six-speed Tiburon is also getting positive reviews.

O'Neill says that he has paid close attention to what retailer Target achieved by combining low prices with cool design. That's why he persuaded Hyundai to build a $25 million design center in southern California. O'Neill hopes that the center will allow Hyundai to appeal to customers' emotions as well as their wallets. "I'll never pretend to be a car guy," O'Neill says. "But I don't want to sell just a heater and keys."

Indeed, as Hyundai prepares for a new phase of growth and expansion, O'Neill is acting more like the business visionary that he declined to be back in 1998. For example, he's launching a high-profile marketing campaign for his newly energized brand: inspirational, emotional ads that barely mention the bumper-to-bumper warranty. "A car isn't just nuts and bolts," says O'Neill. "At some point, it has to be a reflection of your desires."

Gee, he almost sounds like a car guy.

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More Than a Heater and Keys
A six-speed sports transmission, a V-6 engine with enough power to hit 180 horses, and a ripped design that pays homage to Ferrari. The 2003 Tiburon (above) is exactly what you wouldn't expect from Hyundai.

But the Tiburon is just the kind of ride that Finbarr O'Neill's team of marketers hopes will set the tone for Hyundai's next step forward: designing cars that critics and consumers lust after. "Having a great warranty is beside the point with a car like the Tiburon. Basically, it just looks great," says Paul Sellers, Hyundai Motor America's director of marketing communications.

So far, consumers agree. The Tiburon's sales hit close to 2,000 units in July alone. More important: Young males who spend thousands of dollars to trick out Acura RSXs and Honda Civics have turned their attention to the Tiburon, which already comes with 17-inch wheels on the high-end version -- the latest must have for the hottest cars.

Fara Warner (fwarner@fastcompany.com) is a Fast Company senior writer. Learn more about Hyundai on the Web (www.hyundaiusa.com).