Kia rolls out unemployment insurance scheme to boost sales

Coroanvirus pandemic outbreak has dealt a serious blow to the global automotive industry. It has caused carmakers to suspend production and dealerships have been shut in various parts of the world owing to lock downs. But the damage to the industry will be more lasting than it seems. This is because COVID-19 has impacted global economy and livelihood. Businesses, in order to reduce losses, are likelier to go leaner with less workforce as a result of which a lot of people are worried about the tenure of their employments. And given an economic distress in various countries, people are now likely to refrain from spending money on new vehicles and instead use it to create a safety net on rainy days. What this effectively means is that coronavirus has lowered the buying sentiment, to address which, carmakers are now coming up with innovative methods. One such incentive is being offered by Kia Motors; according to a Reuters report, the South Korean carmaker has decided to offer 'unemployment insurance' to new car buyers in Europe.

As part of this new insurance scheme, car owners can delay monthly payment of the vehicle if they lose their job. The insurance scheme, which costs €15 to €20 per month, allows customers to resume paying the installments once they are rehired. With this, Kia is hoping to entice reticent consumers and rack up sales.

Emilio Herrera, Chief Operating Officer, Kia Motors Europe, said, "We are in discussions over how to implement it in the majority of markets in Europe. We want it in place as soon as markets reopen in May."

COVID-19 is having an unprecedented impact on the the global automobile industry. Some industry experts opine that pandemic is likely to have a more gruesome impact on the global auto sector than the global recession of 2008-09. And as things start getting better in a lot of countries across the world, automakers are preparing to cautiously resume operations, with employee and customer health as the core area of focus. Besides offering incentives for buying new vehicles, companies are also planning to digitalize the entire sales process so that customers are not required to visit dealerships and the vehicles are delivered at their door step.

Source: Times Now News