Hyundai, Kia Warn Parts Shortage Could Disrupt Production
05-23-2011, 01:15 PM
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Hyundai, Kia Warn Parts Shortage Could Disrupt Production
http://www.leftlanenews.com/hyundai-...roduction.html
Hyundai announced this week that a recent labor dispute at a key supplier will disrupt some of its vehicle production in the coming month. Hyundai says the parts shortage will also affect its affiliate Kia Motors.
Hyundai announced on Sunday that a strike at supplier Yoosung Enterprise Co. has caused a parts shortage that will impact vehicle production over the next several weeks. The strike began on May 18th as workers clashed with management over new wage and shift systems.
Yoosung Enterprise produces about 70 percent of the piston rings used in Hyundai and Kia vehicles. The parts shortage has already affected production at some of Hyundai’s global plants, but it remains to be seen how the situation will impact Hyundai’s U.S. operations.
“Hyundai Motor America is in close contact with Hyundai Motor Company concerning the supplier strike in Korea,” the company said in a statement. “At this time it is not clear what impact this may have on production of cars being built for the U.S. market in Korea. We will continue to closely monitor the situation.”
So far this year more than 75 percent of Hyundai’s U.S. sales have come from U.S. built vehicles. Still, the parts shortage could have an impact on popular vehicles like the Sonata sedan and Santa Fe SUV. The timing couldn’t be worse for Hyundai as its Japanese rivals are cranking up production to make up for lost sales following Japan’s March 11 earthquake.
Hyundai announced on Sunday that a strike at supplier Yoosung Enterprise Co. has caused a parts shortage that will impact vehicle production over the next several weeks. The strike began on May 18th as workers clashed with management over new wage and shift systems.
Yoosung Enterprise produces about 70 percent of the piston rings used in Hyundai and Kia vehicles. The parts shortage has already affected production at some of Hyundai’s global plants, but it remains to be seen how the situation will impact Hyundai’s U.S. operations.
“Hyundai Motor America is in close contact with Hyundai Motor Company concerning the supplier strike in Korea,” the company said in a statement. “At this time it is not clear what impact this may have on production of cars being built for the U.S. market in Korea. We will continue to closely monitor the situation.”
So far this year more than 75 percent of Hyundai’s U.S. sales have come from U.S. built vehicles. Still, the parts shortage could have an impact on popular vehicles like the Sonata sedan and Santa Fe SUV. The timing couldn’t be worse for Hyundai as its Japanese rivals are cranking up production to make up for lost sales following Japan’s March 11 earthquake.
