April 27, 2024

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[THE INVESTOR] Concerns are growing over a possible delay in the production of Hyundai Motor’s small SUV model due to an ongoing labor dispute at its Ulsan Plant 1.

Its labor and management are locking horns to reach an agreement on the scale of new car parts to be adopted for Kona, working hours as well as the number of workers to be assigned.

The disagreement was triggered after the company decided to outsource the assembly line’s supply of car bumpers. The decision was made in order to maximize the efficiency of production and increase the quality of Kona. But it was met by strong opposition from workers who wanted to remain part of the assembly line.

As Kona is expected to be launched within the first half of this year, the labor union’s sales committee has been emphasizing the need to advance its production.

However, the company is still struggling as the production schedule has been halted, said an official from Hyundai Motor.

By Yim Ji-min/The Korea Herald (jiminy@heraldcorp.com)