Hyundai Motor Execs Return 20% of Salaries

Hyundai Motor Group's 1,200 executive-level employees have agreed to return 20 percent of their monthly salary beginning this month.

The executives came from 51 affiliates and included the group's Executive Vice Chairman, Chung Euisun.

The executives had reached a consensus that cutting costs is necessary due to unfavorable business environment, locally and overseas.

Executives from Hyundai Motor Group have a history of returning portions of their wages when under pressure, including during the 2008 financial crisis and in 2016, when the company suffered a dip in earnings and sales.

Hyundai Motor Group had earlier announced it was cutting salaries of its executives by 20 percent. The company failed to indicate how long they will implement the plan.

For the past two months, the company had suspended production in all regional markets, such as US, Europe, China, and India.

Six of Hyundai Motor Group's overseas factories are currently closed, according to the company.

The initial cause of the suspension was the disruptions in the supply chain in China. Later, it was due to the plunging global demand for vehicles.

Meanwhile, workers from Renault-Samsung and Ssangyong and Renault have agreed on a wage freeze following months of negotiations.

Both automotive companies are experiencing deterioration in their financial positions on account of the pandemic.