Hyundai Motor's All-Out Effort to Overcome COVID-19 Domestically and Abroad... Full Waiver of Franchise Fees in Daegu and Gyeongbuk

Support of 2.2 Billion KRW Franchise Fees to Service Partners from March to May
'Hyundai Assurance' Program Relaunched in the US

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group is making an all-out effort in domestic and overseas regions to overcome the crisis caused by the novel coronavirus infection (COVID-19) outbreak.

Hyundai Kia Motors announced on the 16th that it will support a total of 2.2 billion KRW in franchise fees from March to May for domestic service partners struggling with management difficulties due to COVID-19. First, in March, franchise fees for 143 Blue Hands locations and 73 AutoQ locations in the Daegu and Gyeongbuk regions, which were particularly hard hit, will be fully waived, and franchise fees for 727 locations in other regions will be reduced by 50%. In April and May, franchise fees nationwide will be reduced by 50%. As a result, Hyundai Motor will support about 1.41 billion KRW, and Kia Motors about 820 million KRW in franchise fees.

A Hyundai Motor Group official stated, "We empathize with the difficulties of service partners suffering from the deteriorating business environment due to COVID-19 and have decided to support franchise fees for three months."

Earlier last month, Hyundai Motor Group donated 5 billion KRW to the National Disaster Relief Association to prevent the spread of COVID-19 and aid recovery. By providing about 1 trillion KRW in emergency support to small and medium parts suppliers, it eased the financial burden on partners and also offered two group training centers located in Gyeongbuk as living treatment centers for mild COVID-19 patients. Hyundai Motor Group Executive Vice Chairman Chung Eui-sun said at the time, "I hope specific support can be provided to directly assist the dedicated medical staff and medical activities such as treatment and quarantine."

In the United States, which declared a national emergency due to the spread of COVID-19, the "Hyundai Assurance" program is being reactivated. The core of the program is to pay installments for up to six months to customers who involuntarily lost their jobs and purchase or lease new cars by the end of next month. Additionally, payment deferrals for 90 days are offered for some new cars such as the Santa Fe, Tucson, Kona, and Elantra. This strategy is interpreted as an attempt to both support customers by reducing their financial burden and defend sales volume.

Hyundai Motor introduced a similar Assurance program right after the 2009 global financial crisis. At that time, the Hyundai Assurance program involved buying back cars from customers who had purchased vehicles through loans or leases but lost their jobs within a year or faced difficulties maintaining the car due to health issues. This program, the first of its kind in the U.S. automotive industry, proved effective as a marketing strategy during the economic downturn and contributed to expanding Hyundai's market share in the U.S.

Subsequently, Hyundai Motor also introduced a "Korean-style Assurance program" domestically, which guarantees losses from vehicle accidents and involuntary unemployment for one year after purchasing a new car.

Jose Munoz, President of Hyundai Motor North America, said, "We understand the uncertainty and anxiety of customers caused by COVID-19, and we wanted to leverage our company's past legacy of supporting people. Reactivating this program will help ease the worries of customers who unexpectedly find themselves unemployed."

Meanwhile, Hyundai Motor America announced on the 13th (local time) that it has established response teams in all affiliates to prepare for COVID-19. Through this, they are monitoring the situation and minimizing risks, preparing for all scenarios.

This content was produced with the assistance of AI translation services.