Hyundai Motor Union "Cannot Accept 2.1 Trillion KRW Quality Cost Reflection"... Demands Management Accountability

[Asia Economy Reporter Suyeon Woo] The Hyundai Motor Labor Union has expressed strong opposition to Hyundai Kia Motors' decision to reflect large-scale quality costs in the third quarter performance this year, stating that they cannot accept it. The union demanded that the management responsible for causing the quality issues be held accountable, refusing to accept the act of shifting quality problems onto union members.

On the 22nd, the Hyundai Motor Union stated in a press release, "The operating loss due to quality costs in the third quarter of this year is an unacceptable profit and loss calculation," and insisted, "Dismiss the quality-related management who caused the quality problems first."

The union said, "If the 2.1 trillion KRW quality costs of Hyundai Motor are reflected in the third quarter profit and loss, Hyundai Motor's operating profit would show a loss of approximately 800 billion KRW," adding, "We feel disheartened and angry about the measure that treats the profits made through the efforts of union members as a complete negative."

Furthermore, the union added, "We will not forgive the act of shifting quality problems onto union members under the pretext of assembly issues, which account for a minor portion of quality claims," and emphasized, "Active investment in research and development (R&D) and quality facilities is necessary."

Chung Euisun, Senior Vice Chairman of Hyundai Motor Group, was appointed as chairman on the 14th, marking the full-scale launch of the third-generation management system of Hyundai Motor Group. Hyundai Motor Group, including Hyundai Motor and Hyundai Mobis, held an extraordinary board meeting that morning and approved the appointment of the new chairman, Chung. Accordingly, Chairman Chung became the undisputed head of the group just 2 years and 1 month after his promotion to senior vice chairman of the group in September 2018, and 7 months after becoming chairman of Hyundai Motor's board in March this year. The photo shows the Hyundai Motor Group headquarters in Seocho-gu, Seoul on that day. Photo by Kim Hyunmin kimhyun81@