Hyundai to Part Ways With Ala. Supplier That Employed Kids
Tells shareholders its suppliers in state now in compliance with child-labor laws.

Hyundai says it audited 29 of its direct suppliers in Alabama and is confident it's now in full compliance with labor laws there.
IMAGE: Hyundai
Hyundai said it will shed its controlling stake in an Alabama auto parts plant that was fined last year over child-labor accusations after children as young as 13 were found working for the Korean-operated supplier, Reuters said.
The South Korean automaker shared its decision in the matter with shareholders Friday in a letter. Reuters reported that the letter indicated Hyundai audited 29 of its direct suppliers in Alabama that it said gave it confidence it’s “now in full compliance with underage labor laws.”
A U.S. district court ordered SL Alabama LLC last fall to stop violating the Fair Labor Standards Act’s child-labor provisions after the federal and state labor departments investigated the supplier, finding “oppressive child labor by employing minors under 16 in a manufacturing operation.”
Reuters said Hyundai’s audits of its Alabama suppliers were done by an outside law firm.
In its letter to shareholders, Hyundai said it’s implementing extensive measures that include training of parts suppliers starting in March in collaboration with the federal labor department in an effort to prevent child-labor violations.
Reuters said that one of the plants where children worked is a direct Hyundai subsidiary of which Hyundai said it’s in the process of divesting an ownership stake.
LEARN MORE: Parts Supplier Fined Over Child Labor
More Dealer Ops

Dealer Debrief: Defection Data & EV Updates
In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.
Read More →
How Defection Data is Bridging the Dealership Conversion Gap
Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.
Read More →
Dealer Debrief: Where are you losing customers?
In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.
Read More →
Dealer Debrief: Improving Your Inventory Management
In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.
Read More →
Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins
A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.
Read More →
What Market Timing Mistakes Mean for Your Reinsurance Program
When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.
Read More →
Dealer Ads and the FTC
The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.
Read More →
Used Autos Supply Dwindles
The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.
Read More →
Managing Risk Effectively Through Changing Times
The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.
Read More →
Survey Reveals What Won't Fix What's Breaking Car Sales
AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.
Read More →
