] Hyundai Motor
may fall short of its production target this year, weighed down by the ongoing labor dispute.
The union has halted walkouts until Oct. 11, with only the union leaders staging demonstrations. However, the union has stated that industrial actions will again be taken unless an agreement is reached before the date.
According to the Ministry of Employment and Labor, Hyundai Motor’s union has staged 24 partial and full strikes. The strikes have cost the company 131,000 vehicles in lost production. The damages are estimated to be worth over 2.9 trillion won (US$2.61 billion). The damages to Hyundai Motor’s primary suppliers is estimated to be 1.3 trillion won.
The drop in output has led to Hyundai and Kia Motors
' September domestic sales slipping 20 percent and 14.9 percent, respectively, from a year ago.
Despite the two carmakers’ overseas output being raised, the strikes at its local facilities will lower the company’s annual output, industry watchers say.
HI Investment and Securities projected in a report that Hyundai Motor’s output will not only fall short of the 5.01 million units, but also fall below last year’s 4.96 million units.
In addition to bringing down production, Hyundai Motor’s labor dispute appears to be damaging the company’s image, and the chief of small and medium enterprises has warned that a boycott campaign could be launched should the labor dispute continue.
By Choi He-suk (email@example.com