April 19, 2024
Automobiles
Hyundai suspends plant operations in China
[THE INVESTOR] A Hyundai Motor plant in China was forced to suspend operations on Sept. 5 as a German company refused to supply auto components due to payment problems, the carmaker said.
Hyundai’s plant in Cangzhou, Hebei district, was brought to a halt as the supplier has stopped delivering air intake components due to delayed payments, a company spokesman said over the phone.
“We are in talks with the German partner so work can resume at the No. 4 plant (in China),” he said without elaborating on the value of the delayed payments.
On Aug. 25 last week, Hyundai’s four plants in China resumed operations after a weeklong output suspension due to parts supply problems.
Then, a local supplier stopped providing plastic fuel tanks to the plants -- one in Cangzhou and three in Beijing -- after it reportedly did not receive 18.9 billion won (US$17 million) from Hyundai.
The four plants have a combined capacity of 1.35 million vehicles. Hyundai has recently built its fifth plant in China with a capacity of 300,000 units in Chongqing. This plant is currently undergoing test production.
By Alex Lee and newswires (alexlee@heraldcorp.com)
Hyundai’s plant in Cangzhou, Hebei district, was brought to a halt as the supplier has stopped delivering air intake components due to delayed payments, a company spokesman said over the phone.
“We are in talks with the German partner so work can resume at the No. 4 plant (in China),” he said without elaborating on the value of the delayed payments.
On Aug. 25 last week, Hyundai’s four plants in China resumed operations after a weeklong output suspension due to parts supply problems.
Then, a local supplier stopped providing plastic fuel tanks to the plants -- one in Cangzhou and three in Beijing -- after it reportedly did not receive 18.9 billion won (US$17 million) from Hyundai.
The four plants have a combined capacity of 1.35 million vehicles. Hyundai has recently built its fifth plant in China with a capacity of 300,000 units in Chongqing. This plant is currently undergoing test production.
By Alex Lee and newswires (alexlee@heraldcorp.com)
