Hyundai Motor faces production losses amid prolonged strikes

Hyundai Motor Co. anticipates significant production losses due to ongoing labor strikes, industry sources have revealed. The automaker's union has escalated strike actions amid ongoing wage negotiations, causing a disruption in vehicle production. The union has announced a series of strike actions, including four-hour partial strikes on Wednesday and Thursday, followed by an eight-hour full-scale strike on Friday, marking the first such walkout in ten years.

The labor dispute is set to extend further, with the union planning four-hour partial strikes on Monday and Tuesday, thereby prolonging the strike to five days in total. This relentless strike activity is projected to result in a cumulative production loss of approximately 62,000 vehicles between last month and August 25, according to industry sources.

The total lost sales are estimated to amount to 2.6 trillion won, or roughly 1.85 billion US dollars. The ongoing labor dispute is exacerbating challenges for Hyundai Motor, especially as the automaker deals with declining global sales. Global sales of Hyundai Motor fell by 5.1 percent year-on-year to 318,454 vehicles in July, marking the 10th consecutive month of year-over-year declines.