Hyundai Idles Production in China

Hyundai Motor Co. has suspended production at all four of its operational factories in China because a supplier stopped shipping fuel tanks after not being paid, Bloomberg News reports.

News of the unidentified supplier’s action was first reported by the Seoul Economic Daily. The disruption affects nearly a dozen models produced in the country by Hyundai’s joint venture with BAIC Motor Corp.

Beijing Hyundai has capacity to make 1.6 million vehicles per year. But the venture’s sales in China through the first half of 2017 plunged 42% to 301,000 units. Demand has suffered over the country’s opposition to the deployment of a U.S. anti-missile system in South Korea.

China normally generates about 20% of worldwide sales by Hyundai and its Kia Motors affiliate. As in other markets, Hyundai’s also is struggling with a product lineup that is short on popular SUV/crossovers and long on conventional sedans.