Hyundai reportedly cuts costs, perks amid profit decline

Hyundai Motor is cutting costs, limiting business class flights for employees and annual family home trips for over overseas workers as the Korean automaker copes with a fourth successive decline in annual profit, Reuters reported Monday.

The economizing also includes cutting back even on such seemingly minor expenses as the company's printing costs and purchases of fluorescent light bulbs, the report said.

Additionally, Hyundai Motor Group executives have taken a 10% pay cut since October, the first such reduction in seven years, the report said. The group has also sought less expensive hotel rooms for executive travel and has encouraged usage of video conferencing to avoid costly trips.

Coming days after Hyundai unexpectedly fired its U.S. CEO, Dave Zuchowski, the latest trimming represents an effort to save money as the company's car-heavy lineup struggles in an auto industry market currently dominated by sport-utility vehicles, crossovers, and pickup trucks.

"We're trying to address a mismatch between the market trend and our product line-up," the report quoted one unidentified Hyundai official as saying. "That's a longer-term plan. For now, we're trying to save every penny."

Responding to the report, Hyundai confirmed the company "is making various cost-saving efforts" but did not provide specifics.

Contributing: Nathan Bomey

Follow Paste BN reporter Kevin McCoy on Twitter: @kmccoynyc