Hyundai Motor Halts Genesis Line on Labor Dispute Amid Sales Slump

Hyundai Motor has temporarily halted its Genesis production line at the Ulsan plant due to a labor dispute over new test vehicles. The conflict, which began at 9:00 a.m. on November 2, involved clashes between workers and management attempting to introduce G80 hybrid test vehicles. Following the suspension, Hyundai announced it would apply the "no work, no pay" principle to about 800 employees in the Genesis assembly department.

The root of the issue lies in the 'Man-Hour' consultation process for the mass production of new models. Hyundai sought to consult with labor on workforce requirements for the G80 hybrid and G90 facelift models, but union delegates opposed the introduction of test vehicles due to fears of workforce cuts. Hyundai claimed that talks stalled as delegates refused to participate in the consultation process.

Despite the suspension, Hyundai's global sales in October dropped 6.3% year-over-year to 329,773 units, marking the 13th consecutive month of decline. The domestic market saw sales fall to 49,042 units, with Kia surpassing Hyundai in monthly sales for the fourth time this year. Hyundai aimed to boost sales with new models like the Grandeur and Avante, but failed to reverse the downward trend.

Korea's rival Kia reported a stronger performance, selling 291,219 units globally in October, a 10.3% increase. Kia's cumulative sales for the period rose 5.1% to 2,769,954 units. Hyundai's third-quarter revenue decreased 3.4% year-over-year to 45.1102 trillion won, but operating profit grew 5.5% to 2.6772 trillion won. The company hopes to resolve labor-management issues and restore production, but the conflict appears likely to persist.