Photo: Hyundai
Hyundai has reportedly started a plan to cut its costs, and the company’s executives are on the radar.
According to sources from within the enterprise, Hyundai has decided to tighten the belt by cutting back printing, reducing the number of business class flights, and cutting down on annual home trips for overseas employees.
The plan also includes energy saving with the use of more efficient bulbs, which would have happened regardless of the corporation’s need to save money.
Furthermore, Hyundai’s top executives have taken a 10% cut in their wages, which is the first move of this kind in seven years. The company has also downgraded hotel rooms when traveling, and video conferences are encouraged as an alternative to traveling abroad.
All of these changes will probably happen to their rivals at Volkswagen because of the entire Dieselgate situation, but the problem for Hyundai is linked to its portfolio.
As Business Standard notes, Hyundai needs money to finance the revamp of its portfolio, and it wants to replace its existing line of sedans, hatchbacks, and wagons with SUVs. The company has noticed that this market segment is more popular than ever, and its sales are lagging when compared to its competitors.
When contacted by the media, the representatives of the company have confirmed that various cost-saving efforts are made, but the reply did not comment on the measures that have been reported.
Fortunately for the South Korean company, the automaker is not cash-strapped, but it has suffered an increase of its costs when compared to its revenue stream, which means that the rate of expenses has grown more than it should have over the last few years.
To make matters worse, Hyundai is described to be en route to its fourth consecutive annual profit decline, which justifies the need for reducing costs.
Along with the range revamp, Hyundai also has investment plans in the field of autonomous cars, and its eco-friendly line-up is also scheduled to be enhanced. The launch of the Ioniq was just the start for Hyundai, but the automaker will have to see it selling according to expectations before green-lighting its brothers.
The plan also includes energy saving with the use of more efficient bulbs, which would have happened regardless of the corporation’s need to save money.
Furthermore, Hyundai’s top executives have taken a 10% cut in their wages, which is the first move of this kind in seven years. The company has also downgraded hotel rooms when traveling, and video conferences are encouraged as an alternative to traveling abroad.
All of these changes will probably happen to their rivals at Volkswagen because of the entire Dieselgate situation, but the problem for Hyundai is linked to its portfolio.
As Business Standard notes, Hyundai needs money to finance the revamp of its portfolio, and it wants to replace its existing line of sedans, hatchbacks, and wagons with SUVs. The company has noticed that this market segment is more popular than ever, and its sales are lagging when compared to its competitors.
When contacted by the media, the representatives of the company have confirmed that various cost-saving efforts are made, but the reply did not comment on the measures that have been reported.
Fortunately for the South Korean company, the automaker is not cash-strapped, but it has suffered an increase of its costs when compared to its revenue stream, which means that the rate of expenses has grown more than it should have over the last few years.
To make matters worse, Hyundai is described to be en route to its fourth consecutive annual profit decline, which justifies the need for reducing costs.
Along with the range revamp, Hyundai also has investment plans in the field of autonomous cars, and its eco-friendly line-up is also scheduled to be enhanced. The launch of the Ioniq was just the start for Hyundai, but the automaker will have to see it selling according to expectations before green-lighting its brothers.
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