Burned Rubber: Kumho delays holiday bonuses indefinitely

Filed under: Trends, Earnings/Financials

Rubber factory workers in South Korea haven't had a very happy holiday season this year, and they can blame it on the negative traits of the trickle-down effect.

Because Hyundai/Kia has been hit as hard as any other automaker in this economic crisis, business has been down for the country's second-largest tire maker, Kumho, as well. Due to the resulting dearth in liquidity, Kumho Tire Co. has just announced that it is unable to pay its workers their annual bonus. At 2.5 million won ($1,883) per worker and 3000 workers waiting for their cash, that's a lot of money, and Kumho says they don't have it... and don't know when they will.

Looks like it's tire-swings all around for Junior next Christmas, too...

[Source: TradingMarkets.com]

Burned Rubber: Kumho delays holiday bonuses indefinitely originally appeared on Autoblog on Mon, 05 Jan 2009 14:59:00 EST. Please see our terms for use of feeds.

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