Hyundai To End Its Job Loss Guarantee Program

Hyundai made a lot of noise about its Hyundai Assurance program when it was launched in 2009. The program promises Hyundai buyers they can return their car and get their money back if they lose their jobs.

Why is Hyundai eliminating the program? A company official says it was “very topical for times and really resonated in 2009.” But now, says Hyundai U.S. sales chief Dave Zuchowski, “We're really broadened Assurance to be more than job loss,” according to Automotive News.

Another Hyundai executive, Jim Trainor, quoted by the Detroit News, said: “It's good news. Fewer people are losing their jobs.”

Although the program ends this week, Hyundai said the program will continue to cover customers who buy new vehicles by March 31, but only for one year from the date of purchase.

Zuchowski said about 350 customers have used the program to return their vehicles after losing their jobs. Hyundai has sold about 1 million new cars since the program began.

Perhaps the end of the program means that Hyundai feels it's arrived, said some observers. The company's sales have risen from about 400,000 vehicles in 2008 to more than 530,000 last year. More significantly, the Korean company is in a strong competitive position with Japanese-built cars in short supply because of the earthquake and tsunami.

The company that administers the job-loss program for Hyundai, EFG Co., said it continues to run similar programs for a few hundred non-Hyundai dealers and hopes to see more dealers and manufacturers pick up on the idea.