Hyundai Mobis Provides Emergency Management Support to Parts Dealers Affected by COVID-19

[Asia Economy Reporter Suyeon Woo] Hyundai Mobis has announced an emergency management support plan to help parts dealerships facing difficulties such as sales decline due to the prolonged spread of the novel coronavirus infection (COVID-19). In addition, employees and the company will practice coexistence to overcome COVID-19 by creating a matching fund together and donating it to medical support organizations.

On the 8th, Hyundai Mobis announced that it has prepared an emergency management support plan to discount parts supply prices and extend the maturity dates of promissory notes for parts dealerships struggling with management due to COVID-19 for the month of April.

First, Hyundai Mobis decided to discount parts supply prices for 1,134 dealerships nationwide for the month of April. This support is expected to provide benefits of about 3 million KRW per dealership.

The maturity dates of promissory notes due this month will also be extended. Hyundai Mobis will accept requests for the required period from each dealership and extend the maturity of promissory notes up to three months. Through this maturity extension, Hyundai Mobis expects to provide practical help in securing cash liquidity for dealerships experiencing management difficulties such as sales decline and delayed collections from clients due to COVID-19. Along with this, about 5,000 hand sanitizers will be distributed to parts dealerships nationwide.

Se-gon Oh, Executive Vice President of Hyundai Mobis Service Parts Division, said, "Parts dealerships nationwide are partners playing an important role on the front line of the automotive after-service (A/S) parts supply chain for prompt parts supply," and added, "We hope this emergency support will help alleviate financial difficulties even a little."

A Hyundai Mobis employee is participating in a voluntary donation campaign using a mobile QR code method. Photo by Hyundai Mobis

Meanwhile, Hyundai Mobis is supporting medical staff working on the front lines to overcome COVID-19 by collecting donations through voluntary contributions from employees. The fundraising is conducted in a '1+1 matching fund' format, where the company donates an amount equal to the voluntary contributions made by employees. During the approximately two-week fundraising period starting from the 26th of last month, employees raised about 75 million KRW, and the company matched the same amount, creating a total donation fund of 150 million KRW.

The donation will be used through the medical support organization Medipeace to provide protective suits, masks, and food kits needed by medical staff working in isolation wards for severe COVID-19 patients.

Hyundai Mobis explained that the significance lies in the fact that the entire donation process started from the voluntary participation of employees. A post proposed by an employee on the company’s anonymous bulletin board received numerous supportive comments from employees, initiating voluntary donations, and the selection of the donation recipient was decided through surveys and voting to reflect employees’ opinions.

Byunghoon Park, Managing Director of Hyundai Mobis Culture Support Office, said, "It is very meaningful that the start and end of this donation campaign were all achieved through the voluntary participation of employees," and added, "We will continue to listen to employees’ suggestions and carry out various coexistence activities."