Hyundai Presents a Bold Marketing Plan

Could this marketing plan backfire on Hyundai? The car company is trying to reassure possible car buyers that Hyundai will help and take back the new vehicle if there is a job loss:

“…”If you find that you cannot make your payment because of a covered life changing event, we’ll allow you to return your vehicle and walk away from your loan obligation - and in most cases we will cover most, if not all of the difference,” the carmaker’s Web site says.”

link: Laid off? Hyundai will take your car back

Hyundai is taking a calculated risk. It is projecting that there is not a point where there is declining sales and significant number of guaranteed take-backs. It could mean negative cash flow. Hyundai must think that the economy will not reach that economic precipice. One hopes that Hyundai is correct - but ‘what if this automaker has miscalculated?’.

Catherine Forsythe