Mexican Media Brands
UPDATE: New Supply Problems Idle Hyundai Plant in China
Hyundai Motor Co.’s assembly plant in Changzhou has suspended production after a Germany supplier of air intake systems halted shipments because it hadn’t been paid, The Nikkei reports.
Share
Hyundai Motor Co.’s assembly plant in Changzhou has suspended production after a Germany supplier of air intake systems halted shipments because it hadn’t been paid, The Nikkei reports.
The factory is among four Hyundai facilities that were idled last week when a French supplier of fuel tanks suspended deliveries for the same reason. That issue has been resolved, according to the newspaper.
Hyundai blames the latest disruption on a nonpayment by venture partner BAIC Motor Corp. In an unusually blunt rebuke, Hyundai CEO told reporters earlier today that partners in the 50:50 venture should not make unilateral decisions.
Sources tell Reuters that BAIC is eager to immediately shift to local and less expensive Chinese vendors. The sources say Hyundai wants to defend its Korean supply chain for now and make the transition to local vendors over 5-10 years.
Like other South Korean companies, Hyundai is struggling with slumping sales and operational challenges brought on by China’s objection to Korea’s deployment of a U.S.-supplied missile defense system. China regards the system as a threat to its national security.
RELATED CONTENT
-
Things to Know About Cam Grinding
By James Gaffney, Product Engineer, Precision Grinding and Patrick D. Redington, Manager, Precision Grinding Business Unit, Norton Company (Worcester, MA)
-
Choosing the Right Fasteners for Automotive
PennEngineering makes hundreds of different fasteners for the automotive industry with standard and custom products as well as automated assembly solutions. Discover how they’re used and how to select the right one. (Sponsored Content)
-
Increasing Use of Structural Adhesives in Automotive
Can you glue a car together? Frank Billotto of DuPont Transportation & Industrial discusses the major role structural adhesives can play in vehicle assembly.
