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Hyundai, Kia announce buyback plan for angry Korean investors

Hyundai's controversial decision last September to move its Korean headquarters to an expansive (and expensive) new facility was met with a swift backlash by shareholders. After making the biggest land purchase in South Korean history, the company's share price took a nine-point nose dive.
Now, in a bid to get back in the good graces of its stockholders, Hyundai and its subsidiary, Kia, will make a $615-million stock buyback plan. Reuters claims this is the first time in ten years that Hyundai has made a buyback offer with the explicit purpose of pumping up share prices.
The total deal bumped up Hyundai's share prices 5.7 percent while Kia is up two percent, although neither company has fully recovered from the battering that followed the headquarters announcement. It's unclear what else it will take for Hyundai to recover the ground it lost during the land deal.

Amazon Prime will now bring you a Hyundai, but you can't keep it

We already rely on Amazon Prime to bring us necessities like food, clothing, and five-pound Hershey bars, so why not entire cars? Hyundai is going to try that, although only to quickly bring you a car to test-drive. There's no one-click ordering for Elantras yet. The program, called "Prime Now. Drive Now", is an extension of the Prime Now fast delivery service that brings certain items to people in select areas in under two hours. It's available this weekend and next, only to people in Los Angeles and Orange County. Prime members can hop online and schedule a time between 9 am and 7 pm, Saturday or Sunday, and designate a preferred location for the test drive. After that, a "trained expert" will be sent with a 2017 Hyundai Elantra for the potential customer to try out for 45 to 60 minutes. If after that they want to purchase an Elantra, the expert can then direct them to a local Hyundai dealer to complete the transaction. This is an interesting approach to reaching consumers and could have benefits for them. People who are too busy to visit a dealer for a test drive can schedule a more convenient time and place to try the car. For people who get stressed out with the dealer experience and the pressure to purchase a car (which is, like, everyone) this could also be a more comfortable way to look at one. It's also a clever way for Hyundai to sort of circumvent its dealers while still letting them handle the final sale, a sort of indirect direct-sales solution. On the flip side, this program means consumers may only try the car that arrives at their door, and there's a decent chance that it will be a high trim with options and features that they might not want or be able to afford. It might still require some shopping around at the dealer to see what the different trim levels and options are like. Though only a limited trial for now, it will be interesting to see if Hyundai continues the program, and having more test-drive options can't hurt. Related Video: Featured Gallery 2017 Hyundai Elantra View 51 Photos Image Credit: Hyundai Hyundai Car Buying Sedan Amazon amazon prime

Hyundai reveals CEO's pay for first time ever

Thanks to some government pressure, Hyundai's billionaire chairman, Chung Mong Koo, has revealed just how much he gets paid each year. Honestly, the amount is a bit lower than we'd expect considering he helms such a huge industrial empire. The 76-year-old chairman brought home $13 million in 2013, $5.2 million of which came from Hyundai's automotive business while both Mobis and Hyundai Steel chipped in $3.94 million, each. For reference, Ford CEO Alan Mulally netted $23.2 million in 2013, although the vast majority of that money came from stock options.
The push for Chung to reveal his pay was part of a larger effort by the South Korean government called the Financial Investment Services and Capital Markets Act. The act forces several thousand companies to release info on annual pay, bonuses and severance for employees earning over $5 million won ($469,000), according to Bloomberg.
"With the disclosure of the executives' compensation, the pressure to deliver better profits will increase," said Heo Pil Seok, the CEO of Midas International Asset Management. It seems to be working, as Hyundai shareholders, of which Midas is one, have seen their shares increase by 6.1 percent in 2014, which includes a 1.2-percent jump as of yesterday, according to Bloomberg.