Hyundai Names New Chief in China

Hyundai Motor Co. has named Tao Hung Than as head of its China operations, effective today, according to local media reports.

Tao, who replaces Chang Won-shin, played a key role in Hyundai’s entry to the Chinese market, according to the government’s Yonhap news agency. Hyundai was not immediately available to comment.

The appointment comes has Hyundai struggles with a 40% drop in sales in China. Demand for Korean products in general has dried up because of a diplomatic spat created when South Korea moved earlier this year to deploy a U.S.-supplied anti-missile defense system in response to North Korea’s threats of attack.

China’s central government declared the plan a threat to its own national security and called for economic retaliation. The resulting sales slump has created a cash crunch for Hyundai’s Chinese operations. The unit briefly suspended production at four factories in China last week when a supplier halted shipments because it wasn’t paid on time.