Hyundai rolls out no-cost car return program

By Soyoung Kim

DETROIT (Reuters) - Hyundai Motor Co, whose U.S. sales dropped dramatically in December, has rolled out the first incentive program for U.S. consumers that would allow them to return vehicles if they lose their jobs.

The plan, which applies to only the first year after purchase, comes at a time when industrywide U.S. auto sales remain at their lowest levels in at least two decades under the pressure of tight credit and weak consumer confidence.

Hyundai on Monday reported a 48 percent plunge in U.S. sales for December, the second biggest decline behind Chrysler LLC. For cars alone, Hyundai's U.S. sales dropped 51.3 percent.

Cars or trucks may also be returned under the program if income is lost due to "certain life altering circumstances" such as bankruptcy, overseas transfer or accidental death.

"The assurance is our attempt to proactively address what we believe is one of the primary contributors to today's economic woes -- a dramatic decline in consumer confidence," David Zuchowski, Hyundai's vice president of U.S. sales, told Reuters.

"There is a myriad of very compelling offers in the marketplace today but regardless of how strong the deal is, shoppers are simply not prepared to make a purchase decision if they're concerned about their job prospects or their ability to make payments," he said.

The program is designed to reinforce Hyundai's "value position" in the market and help overcome that uncertainty by providing confidence in the form of a safety net, Zuchowski said.

Any Hyundai customer may return a vehicle within the first 12 months of ownership and walk away from his or her loan obligation -- up to $7,500 in "negative equity" -- in the event of an loss of income under certain circumstances.