Hyundai Motor Group announced on Oct. 25 that it will cut salaries of 51 affiliate executives by 10 percent starting this month amid the deteriorating business condition.
“Executives of the group’s affiliates are moving to voluntarily cut their salaries,” said a high-ranking official at Hyundai Motor Group on the condition of anonymity. “As far as I know, it (pay cut) will start this month.”
The Korean auto giant's possible pay cut for executives is the first since the 2008 global financial crisis. Some 1,000 executives may join the move, the official said.Hyundai Motor
and its affiliates are struggling to overcome a protracted sales slump at home and abroad.
Unionized workers of Hyundai Motor downed tools from mid-July to late September, costing the largest South Korean carmaker about 3.1 trillion won (US$2.70 billion) in lost production, according to the company.
Hyundai and Kia are set to release their third-quarter earnings reports this week.