As per the information provided by Hyundai Motor Group, about 1,000 of its executives will take a 10 % pay cut, the first such move in seven years.
The pay cuts have affected executives at 51 group companies, a spokeswoman of Hyundai Motor Co said. She further informed that these cuts are voluntary and are applicable from this month. Hyundai Motor Co and its affiliate Kia Motors are struggling due to fall in market share of China and South Korea, as well as slowing demand in other emerging markets.
While its opponents are benefitting from strong demand for sport vehicles, Hyundai Motor Co is trying to rise above the slowing demand for its mainstay sedans like Elantra and Sonata.
Hyundai is also heavily reliant on sales in emerging markets like Russia and Brazil, making them vulnerable to slowing sales in those countries.
Company’s shares were up by 3 % in afternoon trading on Tuesday, compared to 0.5 % fall in the main Korean stock index.