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Hyundai Motor's labor costs fall to lowest in 3 years

Autos 10:09 April 05, 2019

SEOUL, April 5 (Yonhap) -- Labor costs at Hyundai Motor Co., South Korea's biggest carmaker, fell to the lowest level in 2018 in three years, the company's annual report said Friday.

The wages-to-sales ratio at Hyundai fell to 14.8 percent from the previous year's 15.1 percent. The ratio continued to decline after it reached the peak of 15.2 percent in 2016, the company's 2018 annual business report showed.

"Sales increased last year, but deteriorating profitability resulted in lower performance-based pay and other benefits," a Hyundai official said.

In the past three years through 2018, Hyundai's earnings continued to fall on weak sales of its vehicles in major markets, such as China and the United States.

The maker of the Sonata sedan and the Santa Fe SUV posted a net profit of 414.94 billion won (US$365 million) in 2018, down from 2.55 trillion won in 2017 and 4.10 trillion won in 2016, the report said.

During the same period, it swung to an operating loss of 59.32 billion won from an operating profit of 2.16 trillion won and an operating profit of 2.7 trillion won, it said.

All the results are figures for the parent company, not numbers on a consolidated basis.

Hyundai Motor's labor costs fall to lowest in 3 years - 1

kyongae.choi@yna.co.kr
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