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Hyundai cuts spending against the deterioration

Hyundai is in the austerity mode. How does the South Korean car manufacturer deal with the decrease in demand? 

26.Dec.16 2:44 AM
By Anna Tuzova


Hyundai cuts spending against the deterioration
The South Korean car manufacturer Hyundai Motor cuts spending in order to buy time for developing of new models, according to Reuters with the link to an unnamed company’s representatives.

Top mangers’ wages were lowered by 10%, videoconferences are preferable to air travels for personal meetings, and funds allocated to hotel rooms were cut. The cost of printing and even fluorescent light bulbs has been reduced.

Hyundai’s profit, as expected, will show the decrease on results of the fourth year in a row; the company suffered weak results in the developing markets and customers’ tastes changing. S.U.V.s and crossovers are increasingly demanded, while sedans are prevailing in South Korean manufacturer’s range.

As points out company’s staff member, it’s trying to deal with contradiction between market trend and their product line. This is a long term plan. At the moment they are trying to save every penny.

According to him, the company is in the immediate management mode.

Hyundai has confirmed the need for specific measures aimed at the spending reduction against the decrease in demand in the world and rising uncertainty in business area.

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