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Hyundai Execs Asked to Take 10% Pay Cuts
Hyundai Motor Group is asking 1,000 of its executives to accept a 10% pay cut beginning this month as the company prepares to report another quarter of slumping sales and profits.
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Hyundai Motor Group is asking 1,000 of its executives to accept a 10% pay cut beginning this month as the company prepares to report another quarter of slumping sales and profits.
The company and its Kia Motors Corp. did the same thing in 2009, Yonhap News Agency notes. Several other carmakers took similar steps at the time to stem losses as the global recession caused sharp declines in car sales.
Hyundai tells Reuters the new cuts will affect managers at 51 group companies. Analysts say the largely symbolic move underscores the company’s continuing financial woes.
Operating income at Hyundai peaked in 2012 and has been declining since then. The company's operating profit slid 7% in the first half of 2016.
Hyundai’s problems have been caused in large part by a heavy reliance on emerging markets, where sales have slowed. The company also is struggling with unfavorable currency effects and a model lineup filled with too many sedans and not enough crossovers to match demand in major markets. A now-settled series of strikes in South Korea also hurt third-quarter results.
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