Hyundai Motor plans to raise parts purchase prices by an average 20% to help suppliers, who are struggling with higher prices of raw materials.
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According to a Yonhap report in the Korea Times, the decision followed a meeting between Hyundai Motor vice chairman Kim Dong-jin and Hong Seok-woo, head of the Small and Medium Business Administration, a state agency.
Hyundai Motor’s small suppliers have appealed to the car maker to increase its purchase prices for auto parts as rising metal prices are cutting their profitability, the report noted.
Asked if the measure would prompt Hyundai Motor to hike retail prices of its cars, Kim said: “We would double our efforts to cut costs as we can’t increase retail prices.”
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