LG Electronics Korea, used the evening before Thanksgiving in the USA, to announce major management changes to their struggling smartphone operation as well as at to their appliance and air conditioning business.

This is normally done when a Company is trying to hide

information as most US news organisations have already cut back staff for what

is the biggest holiday break in the USA.

The major leadership change announced by LG, will see

control of LG Electronics operations split three ways between Jo Seong-jin,

president and CEO of Home Appliances & Air Solutions, Juno Cho, president

and CEO of Mobile Communications and David Jung, president and CFO. 

The Company that is struggling in the mobile business both

domestically in Australia and globally, is also facing some tough decisions

over their TV business with LG Display looking for partners to fund a new OLED

manufacturing plant.

In Q3 2015, LG Electronics generated US$3.67 billion, from

Home Entertainment, US$2.89 billion from LG Mobile Communications, US$3.55

billion from Home Appliance and Air Solutions and US$409.41 million from LG

Vehicle Components business.

In Australia LG has failed to announce a replacement for

Michael Doyle their former sales director who suddenly quit the Company two

months ago.

ChannelNews has been told by two leading recruitment

executives that several people have been offered the position but have refused

due to perceived “culture problems” that exist at the Korean Company.

One recruitment executive said “We have proposed a number of

people, but they have refused to put themselves up as candidates. Michael Doyle

was an excellent sales director who got business because of his personal

relationships with retailers, unfortunately he failed to develop a prodigy or

deputy who could easily be promoted to take on his role”.

Wayne Park, currently global sales and marketing officer,

will be executive vice president and head of LG’s European Operations.

 Brian Na will be

responsible for LG’s Overseas Sales and Marketing operations which includes

Australia where the Company recently appointed Angus Jones as the new General

Manager of Marketing for LG Australia’s marketing operations.

The big question now is how long will Jones last, he is a

former marketing manager at Dell, a Company who invested more in direct

response marketing than brand and mass consumer electronics marketing. 

 

To date Jones has refused any requests for an interview with ChannelNews.

During the past five years LG Australia has seen several

senior marketing executives join the Company only to quit after a short while

due to differences with Korean management and the work culture at the Korean Owned

Company.

 In 2009, the Company

appointed David Brand a former senior liquor industry marketing director, as

head of LG marketing, he quit in 2010 after LG Australia was fined $3 million

for falsifying claims about their air conditioners.

“David came on board in 2007 and has had a profound

influence over LG Australia’s marketing activities” said William Cho, the

then Managing Director, of LG Electronics Australia. “His efforts to

enhance LG’s brand within the local market have been heavily valued by all

parts of the business”.

Brand told ChannelNews that he could not get out of the

Company “quick enough”.

Also quitting in 2010 was Carli Wilson, the former Marketing

Manager of LG’s Communications Division.

LG Australia then appointed Nick Gibson as Marketing

Director, a former senior marketing executive at Electrolux and Johnson and

Johnson, he was also the former Vice President of Product Development Asia

Pacific for Fabric Care.

He quit after LG was exposed by Choice Australia for duping

Australian consumers by using an illegal device within some fridges to make

them appear more energy efficient. The Company was fined $4M by the Federal

Court and place on strict monitoring of their marketing.

Then in 2012 LG lured Lambro Skropidis to the Company, the

former marketing director of arch rival Samsung Australia, Skropidis also quit

the role this year to take up the role as head of marketing at Electrolux.

LG Australia’s Head of Mobile Communications, Jonathan

Banks, also quit the company in March 2015.

Globally David Jung will look after sales and marketing,

global production and quality management in the role of Business Administration

Officer, said LG.

LG said that they expect its next high-growth areas to be

energy, IT, B2B and its automotive business, according to a press release

announcing the management changes.

Freeing up these businesses will allow them more of an

opportunity to excel independently without getting bogged down with the poorer

performing areas.