TOKYO — The Hyundai Motor Group is securing emergency financing for both itself and its dealers to help weather the COVID-19 pandemic downturn in the U.S. and around the globe.
The moves are being orchestrated by Hyundai Capital Services, the Seoul-based financial arm of the South Korean automaker which booked a record level of overseas assets in 2019.
In shifting its strategy to protect access to cash during the slowdown, Hyundai Capital Services cited IHS Markit’s forecast for an 18 percent tumble in global auto sales this year.
In the U.S., Hyundai Capital America, the financing group’s local unit, issued a $1.8 billion bond this month to secure sufficient liquidity as dealerships close and sales plummet.
Hyundai Capital America also is assisting dealers with floorplan deferral up to 60 days and working capital loans for three years, the company said last week. Qualified customers in the U.S. may also defer interest payments on new vehicles for up to 120 days. The assistance applies to the Hyundai, Kia and Genesis brands.